International Journal of Islamic Economics and Finance (IJIEF)
International Journal of Islamic Islamic Economics and Finance (IJIEF) is a journal which is bianually issued (January and July) and initiated by International Program for Islamic Economics and Finance (IPIEF). The publisher of this journal is Universitas Muhammadiyah Yogyakarta. The publication of this journal though tighly-peer reviewed process using Open Journal System (OJS). For the publication, IJIEF only accept research article and publish it in electronic (PDF) version. The electronic publication can be accessed openly on the website http://journal.umy.ac.id/index.php/ijief/index. IJIEF commit to embrace the best research article in islamic economics and finance fields from the whole world and publish it consistently.
Articles
146 Documents
<![CDATA[Participation Banks in Turkey: Issues and Proposes Strategies Based on SWOT Analysis ]]>
<![CDATA[Zulfahmi, Zulfahmi]]>;
<![CDATA[Devi, Abrista]]>;
<![CDATA[Asker, Eyup]]>;
<![CDATA[Hassan, Rusni]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 4 (2021): IJIEF Vol 4 (SI), Special Issue: Islamic Banking ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.v4i0.10475
<![CDATA[Turkey has a long history in Islamic civilisation. However, there is still lack of research to examine participatory banks in Turkey. This is despite the fact that the legacy of strong Islamic law, the majority Muslim population, and the strategic location of the country have failed to serve as catalyst to boost market share of participation banks in the country. This study is aimed at developing priority ranking of SWOT factors and strategies on the participatory bank development in Turkey. Data are collected from experts and practitioners of Participation (Islamic) bank in Turkey. Analytic Network Process (ANP) is used as the methods of analysis. The finding shows that the aspects of participatory banks in Turkey are derived from strengths, opportunities, weakness and threats factors. Sharia board is the main strength of this study, while inadequate competitive product is the main weakness. In the future, government support stands as the first priority from opportunity aspect. Islamic bank in Turkey also needs to aware on the absence of separate law as the main priority of threats aspect. Another finding shows that separated law and regulation is the main strategies of the study. Concomitantly, the study suggests separate law and regulation as the main strategy to enhance banks participation in Turkey. This study could serve as reference point for the regulator in formulating appropriate policy strategies to increase market share of participatory banks in Turkey.]]>
<![CDATA[The Future of Indonesia Islamic Banking Industry: Bankruptcy Analyzing the Second Wave of Global Financial Crisis ]]>
<![CDATA[Yunita, Patria]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 3, No 2 (2020): IJIEF Vol 3 (2), July 2020 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.3227
<![CDATA[This study aims to analyze the resilience of the Indonesia Islamic banking industry from bankruptcy risk in times of financial crisis. This study use binary regression as dependent variable. The Islamic banking industry bankruptcy risk generated from capital buffering changes in accordance with POJK No. 11 / POJK.03 / 2016. Economic Growth, BI rate, Inflation rate and Islamic Money Market O/N rate as independent variables. To anticipate the unobserved heterogeneity, Bank Profitability, USD Exchange Rate, Federal Reserves Interest Rate and  Money Supply (M2) are used as control variables. Data analysis to predict bankruptcy uses logistic regression model of the global financial crisis in Indonesia. Data obtained from monthly statistics report of Bank Indonesia and the Financial Services Authority from Januari 2008 until December 2019 by the structural break which impacted the Islamic banking capital on December 2012.  Our analysis divide indonesia financial condition into two difference time, before and after the structural break. By Probit Logit Regression Model, it was concluded that USD exchange rate is independent variable which is consistently influence the probability of islamic banking bankruptcy risks in all period. BI rate not significantly affected the probability of Islamic banking bankruptcy because profit and loss sharing method applied in Islamic banking. Before the structural break the probability of bankruptcy  significantly affected by Money Supply, USD exchange rate and economic growth. But after the structural break, the probability of bankruptcy significantly affected by Bank Profitability, USD exchange rate, BI rate and Islamic Money Market rate. This model precisely predicted by Count R Squared of 75.81% - 86.67%.]]>
<![CDATA[Shariah Disclosure Practices in Malaysian Islamic Banks using the Shariah Disclosure Index ]]>
<![CDATA[Amin, Nur Afiqah Md]]>;
<![CDATA[Mohd Ariffin, Noraini]]>;
<![CDATA[Fatima, A.H.]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 4 (2021): IJIEF Vol 4 (SI), Special Issue: Islamic Banking ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.v4i0.9953
<![CDATA[Islamic banks are required to ensure their operations and activities comply with the Shariah principles. According to Islamic Financial Services Act (2013) in Malaysia, all operations and activities of Islamic financial institutions including Islamic banks have to comply with decisions made by the Shariah Advisory Council (SAC) of Bank Negara Malaysia (BNM) and the Shariah Committee (SC) of the Islamic financial institution to ensure Shariah compliance. In practice, Shariah compliance is considered a crucial factor by bank stakeholders, especially Muslim customers in their decision to use Islamic financial products. Thus, one of the ways for Islamic banks to convey their Shariah-compliance to their stakeholders is through annual reports. This study examines the level of compliance on Shariah disclosure in the annual reports of Malaysian Islamic banks. A Shariah disclosure index, comprising mandatory and voluntary items, was developed from Bank Negara Malaysia (BNM) guidelines and Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) standards. Shariah disclosure data were collected from the annual reports for the year 2016 of the 16 Islamic banks in Malaysia. Based on Institutional Theory, this study hypothesised high compliance, however the results revealed that none of the banks had full compliance to the mandatory items. Nevertheless, some of these banks disclosed voluntary items. The findings provide useful insights to the regulators and stakeholders on Islamic banks’ compliance on Shariah disclosure. The study also reveals the importance of disclosing additional items in the annual reports of Islamic banks.]]>
<![CDATA[Predictors of Young People’s Career Intentions as Islamic Bankers ]]>
<![CDATA[Amin, Hanudin]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 3, No 2 (2020): IJIEF Vol 3 (2), July 2020 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.3225
<![CDATA[Understanding the willingness of university students pursuing their career as Islamic bankers has proven to be one of the most challenging research topics in the Islamic banking field. This study examines the factors affecting the career intentions as Islamic bankers among university students in Malaysia. Drawing upon Decomposed Theory of Planned Behavior (DTPB), this study examined the factors determining the students' willingness to become Islamic bankers as their future job. Our analysis is based on the 350 respondents involved. Results obtained show that all factors are examined were instrumental in determining the career intentions as Islamic bankers. Our findings should be interpreted with caution. We identified two limitations, first is on the use of the university students as proxies and second our data which was confined to Islamic finance program whilst neglecting other students from business and finance disciplines. The results help improve the role of bank managers to provide proper packages of training to improve the students’ confident to become future Islamic bankers. Besides, this study extends the DTPB’s applicability to include career intentions as Islamic bankers in a Malaysia context.]]>
<![CDATA[Investigating E-Servicescape Influence to Customer Response In Digital Islamic Banking ]]>
<![CDATA[Andriani, Prima]]>;
<![CDATA[Setyorini, Noni]]>;
<![CDATA[Shibghatalloh, Ahmad Hafiyyan]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 4, No 1 (2021): IJIEF Vol 4 (1), January 2021 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.v4i1.10299
<![CDATA[The mobile banking application is developed using the e-servicescape concept to create positive response in customers as application users. The objective of study is investigating the relationship between e-servicescape, trust, virtual word of mouth customer in Islamic banking. This study is quantitative approach that used Structural Equation Modelling (SEM). We collected data using an online questionnaire adapted from previous research, then distributed to all Islamic banking customers in Indonesia. The sampling technique used purposive random sampling involving 158 respondents with criteria such as Islamic bank customers in Indonesia who use mobile application services. The results of the study that all hypotheses are accepted. All dimensions of e-servicescape has a positive and significat effect on e-servicescape, e-servicescape has a positive and significat effect on trust, and trust has a positive and significant effect on customer virtual word-of-mouth. This research provides theoretical and practical contributions which will also be discussed further in this paper.]]>
<![CDATA[Crowdfunding as an Alternative Mode of Financing for Micro and Small Enterprises: A Proposed Qard-al-Hasan Contract ]]>
<![CDATA[Aderemi, Abdulmajeed Muhammad Raji]]>;
<![CDATA[Ishak, Muhammad Shahrul Ifwat]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 3 (2020): IJIEF Vol 3(SI), Special Issue: Islamic Social Finance and Ethics ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.3235
<![CDATA[The global financial crisis that occurred in 2008, coupled with the evolution and globalization of social media and technology has made the evolvement of crowdfunding easy to use as a means of financing. However, the concept of crowdfunding is correlated with spiritual and religious responsibility which can increase the economic growth of Micro and Small Enterprises. In light of this, this paper aims to investigate the capacity of crowdfunding and proposes a crowdfunding model that adheres to the principle of Shari’ah by adopting a legitimate contract known as Qard-al-Hasan. In this regard, the study adopts qualitative research using secondary data with descriptive, and inductive approaches in the analysis. The result shows that Qard-al-Hasan based crowdfunding is great for pioneering business people to get access to financing their small and micro enterprises in compliance with Shariah. However, the findings of this paper will provide a new mechanism for financing micro and small enterprises in line with Shariah.]]>
<![CDATA[Islamic Finance, Small and Medium Enterprises and Job Creation in Turkey: An Empirical Evidence (2009-2017) ]]>
<![CDATA[Benbekhti, Seyf Eddine]]>;
<![CDATA[Boulila, Hadjer]]>;
<![CDATA[Bouteldja, Abdelnacer]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 4 (2021): IJIEF Vol 4 (SI), Special Issue: Islamic Banking ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.v4i0.10490
<![CDATA[The aim of this paper is to investigate if Islamic finance can solve the funding problem of SMEs and facilitate access to finance for SMEs, and how can these last participate in job creation in Turkey in order to face the problem of unemployment. The paper adopts a Vector Autoregressive model (VAR) based on monthly data (2009-2017). The results revealed that Islamic finance is a golden opportunity and a sufficient alternative financial source for SMEs. In addition, as SMEs can reduce unemployment by contributing to the labor market. This study contributes to the existing literature by presenting a promising financing tool to the prospective borrowers of SMEs (farmers, underserved groups, and small entrepreneurs) which is Islamic financing. This alternative can be an effective tool for both muslim and non-muslim countries in regard that conventional finance is more expensive and SMEs are unable to pay high interest rates. It would also help in establishing low unemployment levels. This paper suggested that Islamic banks and Islamic financial institutions should converge more on the SMEs by providing funding to SMEs which would lead to boosting production and economic development.]]>
<![CDATA[Do Google Trends and Shariah Compliant Stocks Co-Integrated? An Evidence from India ]]>
<![CDATA[Irfan, Mohammad]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 3, No 2 (2020): IJIEF Vol 3 (2), July 2020 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.3228
<![CDATA[The objective of the study is to understand the dynamic relationship between Shariah-compliant stocks and the Google search value index (GSVI). The search strength is identified by the search volume of Shariah-compliant stocks on Google. The sample for the study consists of Shariah-compliant stocks commonly available in all the three Shariah indices in India, sample stock data has been extracted on a weekly basis from Sept 2014 to Sept 2019. The results of the study are based on the diagnostic analysis suggests that there is no serial correlation as demonstrated by LM residual test, CUSUM test shows stability in data, coefficient Wald test is showing there is no short-run causality running between selected Shariah-compliant stocks and GSVI. The outcome suggests that there is a long-run equilibrium relationship existing between Shariah-compliant stocks and the Google search value index. Trace statistics has five co-integration equations and Max-Eigen statistics has one co-integration. The vector error correction model (VECM) suggests the acceptability of the model. There are many potential investment opportunities for investors in the Islamic stock market of India. The motive of Shariah is to provide an avenue for ethical and viable investment to the investors. This study will not only be advantageous for the Muslim investors but also the other investors, industrialist, Shariah-compliant advisor as well. ]]>
<![CDATA[Comparison of Islamic and Conventional Banking Financial Performance during the Covid-19 Period ]]>
<![CDATA[Fakhri, Ulumuddin Nurul]]>;
<![CDATA[Darmawan, Angga]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 4 (2021): IJIEF Vol 4 (SI), Special Issue: Islamic Banking ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.v4i0.10080
<![CDATA[The COVID-19 pandemic that is spreading in Indonesia has affected economic growth, likewise banks sector. This study aims to determine the financial performance factors that are affected by the COVID-19 pandemic, both in Islamic and conventional banking which are included in the CBGB 2 category so that banks in Indonesia can anticipate it. This study uses the Artificial Neural Network (ANN) method with 6 financial performance variables in the period of January 2020 - September 2020, namely Capital Adequacy Ratio (%), Operating Expenses / Operating Income (%), Net Operation Margin (%), Landing on Deposits. Ratio (%), Short Term Mismatch (%) which are used as the independent variable, as well as Return on Assets which is used as the dependent variable. The results showed that the COVID-19 pandemic affected financial performance factors in the form of a Funding to Deposit Ratio of 35.21%; Short Term Mismatch of 26.92% and Net Operation Margin of 26.92% in Islamic banking. Whereas in conventional banking, Operating Expenses to Operating Income was 72.87% and the Capital Adequacy Ratio was 17.31%. This result is also in line with previous research where Islamic banking is more vulnerable than conventional banking in facing financial crises.]]>
<![CDATA[Impact of Liquidity Shortage Risk on Financial Performance of Sudanese Islamic Banks ]]>
<![CDATA[Mustafa, Omer Allagabo Omer]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 3, No 2 (2020): IJIEF Vol 3 (2), July 2020 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.3229
<![CDATA[The paper aims to examine the impact of Liquidity Shortage Risk (LSR) on the financial performance of Islamic Commercial Banks (ICBs) in Sudan (1992-2018). The following explanatory powers were used to indicate LSR; which include: liquid assets to total assets, total finance to total deposits, current deposits to total deposits and inflation as a control factor. The financial performance of ICBs (the dependent variable) was measured by the Return on assets. To concludes the relation between the variables, data were analyzed thought used Ordinary Least Squares technique. The main findings revealed that current deposits to total deposits, total finance to total deposits and inflation negatively affected the financial performance. While liquid assets to total assets have positive influence to the performance of ICBs. Monetary policy indirectly contributed to the exposure of ICBs to LSR through money supply increase. Moreover, high inflation motivated depositors to high cash withdrawal from their deposits; and, consequently exposed ICBs to LSR. The study recommends that ICBs should not wholly depend on current deposits as a source of finance, because customersʹ default might lead to LSR resulting in deteriorating profitability. Moreover, diversification of financial assets (with high liquidity) protects them from LSR.  As for the central bank, the contractionary monetary policy is a crucial to control inflation in order to improve the financial performance of ICBs.]]>
