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The Role of Religiosity in Explaining the Intention to use Islamic FinTech Among MSME Actors Majid, Rifaldi
International Journal of Islamic Economics and Finance (IJIEF) Vol 4, No 2 (2021): IJIEF Vol 4 (2), July 2021
Publisher : Universitas Muhammadiyah Yogyakarta

Islamic FinTech is growing rapidly and has become a new alternative of financing for micro, small, and medium enterprises (MSME) which are the backbone of the national economy. This study aims to examine the role of religiosity level of MSMEs actors on the intention to use Islamic FinTech. This research employed Partial Least Square - Structural Equation Modeling (PLS-SEM) method. The data collected using an online questionnaire adapted from previous research, then distributed to 100 Indonesian MSME actors and analyzed using smart PLS. The main result indicated religiosity plays a positively significant role in explaining the intention to use Islamic FinTech. In addition, Perceived Usefulness (PU), Perceived Ease of Use (PEOU), and Subjective Norm (SN) were also found to be influential, while both, Attitude Toward Behavior (ATB) and Perceived Behavioral Control (PBC), have no significant effect on behavioral intention. This research implicates the need for collaboration between the Financial Services Authority (OJK) as the regulator with Islamic FinTech institutions to improve literacy, providing incentives, strengthening consumer data protection, as well as integrating the values from the religious anglein the concept and practice of FinTech product and services that are based on Islamic guideline in order to attract the users from MSME actors.

Accounting for Waqf Institutions: Business, Not-for-Profit or Hybrid Entities? Umar, Umar Habibu; Haron, Md Harashid
International Journal of Islamic Economics and Finance (IJIEF) Vol 4, No 2 (2021): IJIEF Vol 4 (2), July 2021
Publisher : Universitas Muhammadiyah Yogyakarta

Despite the tremendous religious and socio-economic contributions of waqf institutions to Muslim communities across the globe, there was no universal accounting standard to adopt by such institutions until 15 Rabiâ€™II (equivalent to 30th November 2020) when the Accounting Standard for waqf institutions (FAS No. 37) was approved by the Board of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) for adoption with effect from 01 January, 2022. Hence, the objective of this study is to analyze the nature of waqf institutions with a view to establishing whether their appropriate financial accounting and reporting practices should be for business, not-for-profit or both. The documentary research method was applied to achieve the aim of this study through a systematic analysis of relevant accounting and ShariÃ¡h standards. Findings and views of earlier studies were also used. The study reveals that though waqf institutions operate like charitable organizations, they are mandated to undertake or attach to commercial activities in order to generate income for the sustainability of their activities. This signified that they are hybrid and as such, they are supposed to report both waqf and commercial activities in their annual reports and accounts. Hence, the study calls on Islamic countries to provide regulations, guidelines and more importantly accounting standards that will compel or motivate waqf institutions to prepare annual reports and accounts showing both their charitable and commercial activities.Â

Zakat Intermediaries and Its Impact to Industry Growth: Growth Accelerators or Cost Center? Taufik Syamlan, Yaser; Riyanto, Hadi; Asfia, Asfa
International Journal of Islamic Economics and Finance (IJIEF) Vol 4, No 2 (2021): IJIEF Vol 4 (2), July 2021
Publisher : Universitas Muhammadiyah Yogyakarta

This study aims to determine the effect of Islamic bankâ€™s activity as a zakat intermediator on profitability, efficiency, market share, and growth of Islamic banks in Indonesia. This research also analyses from the literature the possibility of zakat as the funding or financing product. The method used is the panel data method and granger causality. The Independent variable external zakat collection while the dependent variables are ROA, BOPO, Market Share, and Growth. The samples of the research are five Islamic Bank who has done the external zakat collection. The data used are quarterly data with a period from 2013 to 2020. The results of this study indicate that this divine role increase the cost of operation and in the same time decreasing the profitability. The result also stated that the intermediating activities of zakat collection is not significant to push the bank market share, profitability as well as the Bank Growth. However, although in terms of regulation bank cannot be the Amil, in the future, there is potential of zakat can push the Islamic market share and bank growth since the zakat collection, Islamic bank can offer third party funding product as the intermediation between the zakat payer and the Amil zakat whose eligible to collect zakat according to the government regulation.

Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria Sulaiman, Sagir Muhammad; Magaji, Mohammed; Rabiu, Warshu Tijjani
International Journal of Islamic Economics and Finance (IJIEF) Vol 4, No 2 (2021): IJIEF Vol 4 (2), July 2021
Publisher : Universitas Muhammadiyah Yogyakarta

Zakah is an important tool in Islamic economic system, it plays a crucial role in reducing some social and economic problems such as poverty, unemployment, indebtedness and inequitable redistribution of income in the Muslim communities. The Zakah institutions in Gombe metropolis are said to practice favouritism and unfair service quality and distribution of Zakah funds among recipients. The main objective of this study is to empirically examine perception of the Zakah recipients towards the services provided by the institutions. This study adopted descriptive survey design approach. PLS-SEM is employed to test the hypothesized model of the study. The result reveals that reliability, responsiveness and assurance significantly affect performance of Zakah institutions but tangibility and empathy were found to be insignificant. The study recommends the need for Zakah institutions in Gombe metropolis to consider improving the tangibles and empathy dimensions of service quality. The study also recommends the need to concentrate on the antecedents of service quality as it will assist Zakah institutions to improve performance. Lastly, the study suggests the establishment of Zakah board that will serve as regulatory body in charge of supervising the activities of private Â Zakah institutions in Gombe state.

Inflationary Dynamics of Consumer and Producer Financing: A case of Islamic and Conventional Banking in Pakistan Manzoor, Arslan; Arshed, Noman
International Journal of Islamic Economics and Finance (IJIEF) Vol 4, No 2 (2021): IJIEF Vol 4 (2), July 2021
Publisher : Universitas Muhammadiyah Yogyakarta

One of the macroeconomics objectives is to stabilize purchasing power for the masses, which remains a leading economic problem in Pakistan for years. Economists are convinced about some degree of inflation in the economy to mobilize economic resources, with the condition to keep it to a minimum. Currently, Islamic finance is setting its firm footing in Pakistan and competing with the conventional financial system. Under this scenario, this study compares the Shariâ€™ah compliant financing provided by Islamic financial institutes, and human made standards of conventional financial institutions. This study explores the effect of consumer financing and producer financing of Islamic and conventional banks on the inflation of Pakistan. Quarterly secondary data between 2009Q2 to 2019Q2 extracted from the State Bank of Pakistan reports and International Financial Statistic. ARCH model is used to estimate the model. Empirical results displayed that Islamic consumer financing, as expected in theory, helps to control inflation. The preaching of moderation in Islamic finance makes Islamic consumer financing less inflationary, and asset-based Islamic producer financing will perform better in reducing inflation. Islamic consumer financing is well participating in the management of inflation. However, Islamic producer financing lacks inflation curtailing ability. The small share in the financial market, and lack of long-term investment plans, are the few reasons why Islamic producer financing is not managing inflation.

Integration of Knowledge (IoK) Methodological Reasoning of Islamic Economics (IE) as the Wisdom of Humanity: A Heterodox Economic Approach Omercic, Jasmin
International Journal of Islamic Economics and Finance (IJIEF) Vol 4, No 2 (2021): IJIEF Vol 4 (2), July 2021
Publisher : Universitas Muhammadiyah Yogyakarta

The world increasingly needs an alternative approach to economic development. This paper endorses the Integration of Knowledge (IoK) approach as the wisdom of humanity through Islamic Economics (IE). A review of relevant literature through qualitative methodologies of library research, discourse and critical content analysis highlights the civilisational practices of integration, how development of economics diverged from such practices and how heterodox approaches reacted to such divergence. A section on learning the wisdom of humanity from each other emphasizes the inevitable historical civilizational integration (IoK) and exchange of knowledge. It follows with a literature review of the development of mainstream economics, how it abandoned such historical civilizational practice and its sound foundations, namely ontology, epistemology, axiology and methodology. A highlight of heterodox economics (HE) responses reveals the alternatives to the mainstream-focused positivistic approach to economics. The inadequacy of those alternatives led us to demonstrate Muslim responses and the centrality of IE as a comprehensive alternative heterodox economic approach. The analysis shows how IE grew along Islamisation of Knowledge (IOK) as two parallel and major intellectual iá¹£laá¸¥ (reform) and tajdÄ«d (renewal) movements. A brief review of the development of each shows the potential of IEâ€™s IoK methodological reasoning to revive the IoK approach in economics as the wisdom of humanity. The sound IE philosophical foundations, namely ontology, epistemology, axiology and methodology, have a major impact in that process. Thus, utilising the core IoK objective within IOK together with IE contributions shape the process of overcoming problems and issues of mainstream economics. Actionable recommendations to practitioners and academics depict how the IE approach to economics could be implemented and sustained along SDGs agenda.

Towards the Implementation of Monetary Management in Islamic Economic System Based on Recent Developments Hassan, Mohammad Kabir; Shah, Muhammad Abdul Rehman; Alazhari, Manzoor Ahmad; Selim, Mohammad
International Journal of Islamic Economics and Finance (IJIEF) Vol 4, No 2 (2021): IJIEF Vol 4 (2), July 2021
Publisher : Universitas Muhammadiyah Yogyakarta

Monetary management is an essential part of the objectives of Shariâ€™ah under the umbrella of the preservation of wealth (Maâ€™al). Our primary sources: Qurâ€™an and Sunnâ€™ah, provide divine legislation on the prohibition of Riba to manage bases of monetary transaction. Further, the juristic tools facilitate scholars to propose solutions to meet the emerging issues on diversified aspects of society. Muslim scholars have always adapted and contributed to the Islamic finance system and regulation, theoretically and practically. In recent decades, Islamic banking and finance has seen strong momentum with double digit growth, fulfilling the monetary requirement of depositors on the liability side along with industry on the asset side. We seek to review the theoretical and empirical literature on Islamic monetary mangement. Monetary management in the Islamic economic context is still an area that needs more research. This paper examines how literature has been developed over time up until modern Islamic economic and banking practices. The findings suggest that Islamic monetary management has been gradually developed in recent years and such development is remarkable steps forward in pursuing Islamic monetary policy independently. In addition, Islamic monetary policy is proved to be relatively more effective compared to interest based conventional monetary policy. The implications of such findings have established new milestones for the central banks of all the countries, including the muslim majority countries for pursuing interest free Islamic monetary policy with full confidence. Â Furthermore, there are four major views on Islamic monetary policy and the central banks of the world should choose one of the best methods and views for the greater effectiveness of monetary policy because conventional monetary policy has been less effective in bringing full employment and price stability in recent years and financial crisis has crippled the interest based conventional economic systems quite badly.

Assessment of the Service Performance of Zakah Institutions in Gombe Metropolis, Nigeria Sulaiman, Sagir Muhammad; Magaji, Mohammed; Rabiu, Warshu Tijjani
International Journal of Islamic Economics and Finance (IJIEF) Vol 4, No 2 (2021): IJIEF Vol 4 (2), July 2021
Publisher : Universitas Muhammadiyah Yogyakarta

Zakah is an important tool in Islamic economic system, it plays a crucial role in reducing some social and economic problems such as poverty, unemployment, indebtedness and inequitable redistribution of income in the Muslim communities. The Zakah institutions in Gombe metropolis are said to practice favouritism and unfair service quality and distribution of Zakah funds among recipients. The main objective of this study is to empirically examine perception of the Zakah recipients towards the services provided by the institutions. This study adopted descriptive survey design approach. PLS-SEM is employed to test the hypothesized model of the study. The result reveals that reliability, responsiveness and assurance significantly affect performance of Zakah institutions but tangibility and empathy were found to be insignificant. The study recommends the need for Zakah institutions in Gombe metropolis to consider improving the tangibles and empathy dimensions of service quality. The study also recommends the need to concentrate on the antecedents of service quality as it will assist Zakah institutions to improve performance. Lastly, the study suggests the establishment of Zakah board that will serve as regulatory body in charge of supervising the activities of private Â Zakah institutions in Gombe state.

Inflationary Dynamics of Consumer and Producer Financing: A case of Islamic and Conventional Banking in Pakistan Manzoor, Arslan; Arshed, Noman
International Journal of Islamic Economics and Finance (IJIEF) Vol 4, No 2 (2021): IJIEF Vol 4 (2), July 2021
Publisher : Universitas Muhammadiyah Yogyakarta

One of the macroeconomics objectives is to stabilize purchasing power for the masses, which remains a leading economic problem in Pakistan for years. Economists are convinced about some degree of inflation in the economy to mobilize economic resources, with the condition to keep it to a minimum. Currently, Islamic finance is setting its firm footing in Pakistan and competing with the conventional financial system. Under this scenario, this study compares the Shariâ€™ah compliant financing provided by Islamic financial institutes, and human made standards of conventional financial institutions. This study explores the effect of consumer financing and producer financing of Islamic and conventional banks on the inflation of Pakistan. Quarterly secondary data between 2009Q2 to 2019Q2 extracted from the State Bank of Pakistan reports and International Financial Statistic. ARCH model is used to estimate the model. Empirical results displayed that Islamic consumer financing, as expected in theory, helps to control inflation. The preaching of moderation in Islamic finance makes Islamic consumer financing less inflationary, and asset-based Islamic producer financing will perform better in reducing inflation. Islamic consumer financing is well participating in the management of inflation. However, Islamic producer financing lacks inflation curtailing ability. The small share in the financial market, and lack of long-term investment plans, are the few reasons why Islamic producer financing is not managing inflation.

Integration of Knowledge (IoK) Methodological Reasoning of Islamic Economics (IE) as the Wisdom of Humanity: A Heterodox Economic Approach Omercic, Jasmin
International Journal of Islamic Economics and Finance (IJIEF) Vol 4, No 2 (2021): IJIEF Vol 4 (2), July 2021
Publisher : Universitas Muhammadiyah Yogyakarta

The world increasingly needs an alternative approach to economic development. This paper endorses the Integration of Knowledge (IoK) approach as the wisdom of humanity through Islamic Economics (IE). A review of relevant literature through qualitative methodologies of library research, discourse and critical content analysis highlights the civilisational practices of integration, how development of economics diverged from such practices and how heterodox approaches reacted to such divergence. A section on learning the wisdom of humanity from each other emphasizes the inevitable historical civilizational integration (IoK) and exchange of knowledge. It follows with a literature review of the development of mainstream economics, how it abandoned such historical civilizational practice and its sound foundations, namely ontology, epistemology, axiology and methodology. A highlight of heterodox economics (HE) responses reveals the alternatives to the mainstream-focused positivistic approach to economics. The inadequacy of those alternatives led us to demonstrate Muslim responses and the centrality of IE as a comprehensive alternative heterodox economic approach. The analysis shows how IE grew along Islamisation of Knowledge (IOK) as two parallel and major intellectual iá¹£laá¸¥ (reform) and tajdÄ«d (renewal) movements. A brief review of the development of each shows the potential of IEâ€™s IoK methodological reasoning to revive the IoK approach in economics as the wisdom of humanity. The sound IE philosophical foundations, namely ontology, epistemology, axiology and methodology, have a major impact in that process. Thus, utilising the core IoK objective within IOK together with IE contributions shape the process of overcoming problems and issues of mainstream economics. Actionable recommendations to practitioners and academics depict how the IE approach to economics could be implemented and sustained along SDGs agenda.

Home Page

OAI Link

Editorial Team

Contact

Reviewer

Google Scholar

Contact Name
Indin Rarasati

Contact Email
indinraras@gmail.com

Phone
-

Journal Mail Official
ijief@umy.ac.id

Editorial Address
-

Location
Kab. bantul,

Daerah istimewa yogyakarta

INDONESIA

Abstract

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Abstract

Home Page

OAI Link

Editorial Team

Contact

Reviewer

Google Scholar

Contact Name Indin Rarasati

Contact Email indinraras@gmail.com

Phone -

Journal Mail Official ijief@umy.ac.id

Editorial Address -

Location Kab. bantul, Daerah istimewa yogyakarta INDONESIA

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Contact Name
Indin Rarasati

Contact Email
indinraras@gmail.com

Phone
-

Journal Mail Official
ijief@umy.ac.id

Editorial Address
-

Location
Kab. bantul,

Daerah istimewa yogyakarta

INDONESIA