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Default Risk on Islamic Banking in Indonesia Misnen Ardiansyah; Aris Munandar; Ahmad Syahrul Fauzi; Ulufun Naimah
Global Review of Islamic Economics and Business Vol 2, No 2 (2014)
Publisher : Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga

Stability of financial institutions is a crucial issue amid the economic crisis that hit the US and Europe. Islamic banking in Indonesia as financial institutions are also required to have good stability in order to maintain the stability of the national economy. The aim of this research is to determine the stability of Islamic banking in Indonesia, and understand the factors that affect the stability. Stability of Islamic banking will be measured using Merton model to estimate the Probability Default (PD). Panel data regression was used to estimate the factors that affect the stability of Islamic Banking. The object of this research is 10 Islamic banking in Indonesia that meet the specified criteria. From the analysis of the Merton model, the research found that the stability of Islamic banking in Indonesia is not good enough. This can be seen from the value of the probability default on Islamic banking which still above 0.5. However, based on the trend, the probability default of Islamic banking has decreased from year to year. Some of the variables that influence the stability of Islamic banking is asset and BI rate (SBI).

Influencing Factors on the Actual Usage of Mobile Phone Banking in the Shari'ah Banks: A Survey in Palembang City, Indonesia Chandra Zaki Maulana; Yuyus Suryana; Dwi Kartini; Erie Febrian
Global Review of Islamic Economics and Business Vol 7, No 1 (2019)
Publisher : Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga

This research was developed from a study conducted by Talukder, Quazi and Sathye in 2014 whom were tried to discover mobile phone banking usage behavior of banks customers in Canberra, Australia. A research model was set to find the relationship between independent and dependent variables. Independent variables consisted of five variables, namely, Perceived Usefulness (PU), Perceived Ease of Use (PEU), Trust (T), Social Influence (SI) and System Quality (SQ), whilst the dependent variable is Actual Usage (AU) of Mobile banking in the Shari’ah banks. Thus, making this research a multiple regression analysis. A survey was conducted by distributing questionnaires to gather primary data from 126 respondents of Shari’ah banks customers in Palembang City, South Sumatra Province, Indonesia. The findings show evidence that there are positive and significant relationship between all independent variables and the dependent variable. As such variable with the highest impact is PEU (30,3%) whilst the lowest is SI (18%) meaning that perceived ease of use amongst customers of Shari’ah banks in Palembang City gave the highest impact on their actual usage of mobile banking, compared to social influence, which is lower. Therefore, it is recommended that Shari’ah banks in this city should consider to put more attention in to providing their customers with a mobile banking application which is easy to use as well as keeping it up to date with the needs of the customers. As an implication to the providers, financial institutions can capitalize on the finding of this research to enhance the ease of use of their application on mobile banking.

The Influence of Marketing Mix (Product, Price, Place, and Promotion) and Service on Customer’s Decision of Using BSM Saving Products Yusuffia Nur Azizah Istiqomah
Global Review of Islamic Economics and Business Vol 3, No 2 (2015)
Publisher : Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga

The purpose of this research is to determine the effect of Marketing Mix (Product, Price, Place, and Promotion) and service to the customer’s decision to use the product “Tabungan BSM” in Bank Syariah Mandiri branch office Kaliurang. The results of this research can be taken into consideration of the bank’s management to evaluate marketing strategies and services applied in the bank. The sample in this research is 112 respondents from customers “Tabungan BSM” in Bank Syariah Mandiri branch office Kaliurang. The sampling technique uses purposive sampling method. This research is a field research with quantitative approach. The data are primary and secondary. Primary data is obtained based on respondent’s answers to a quesionnaire distribution. This research uses multiple regression analysis with the normality test, classical assumption test, descriptive analysis, F test, coefficient of determination test, and hypothesis test (t-test) with processing using SPSS 17.0 for Windows. The data processing results are obtained equation Y = 2,279 + 0,062X1 + 0,246X2 + 0,173X3 + 0,356X4 + 0,157X5 + e. Based on Ftest shows that Fhitung (12,962) > Ftabel (2,300) and the level of significance probability of 0.000 (the level of significance probability) is smaller than 0.05, then the regression model in this reseach can be used and jointly independent variables influence the decision of used “Tabungan BSM”. Based on coefficient determination test is known that Adjusted R2 value is equal to 0.350 or 35%. This means that with five independent variables that include Product, Price, Place, Promotion, and Service can represent 35% of variables which affects the descision variable usage of “Tabungan BSM” by customers of Bank Syariah Mandiri branch office Kaliurang, while the rest (100% - 35% = 65%) is explained by other variables outside the model used. Meanwhile, based on the t-test, it shows that the variables of product, price, Place, and servicedo not affect the customer’s decision to use “Tabungan BSM” in Bank Syariah Mandiri branch office Kaliurang. There is only one variable that is variable Promotion.

Sanctuary in the Midst of Crisis? A Look into Shariah Indices using Multivariate GARCH DCC Syed Aun Raza Rizvi; Shaista Arshad
Global Review of Islamic Economics and Business Vol 1, No 2 (2013)
Publisher : Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga

Islamic Finance has evolved over the past few decades, and stands at over a trilliondollars today. At the foundations of Islamic finance lay the concept of risk sharing, and the purest forms of it in the modern day finance is equity investments. The evidence of Islamic investors pursing equity investments in reality is thin. Multitude of reasons are attributed to this low participation, mainly revolving around lack of empirical proof of Islamic investments being a reliable and steady return alternative. This study is an attempt to study the volatilities and correlations with the conventional global equity indices utilizing Multivariate GARCH Dynamic Conditional Correlations (MGARCH DCC) method. The findings provide an interesting angleto our study, where there is a significant downwards trend in the correlations during the crisis era. This provides substance to the argument that Islamic investors would experience lesser downside in economic crisis. This study further dwells into the linkage of Islamic indices with global financial indices to study if financial sector exclusion from Islamic indices benefits theinvestors. The findings are positive, with lower correlations and that to reducing in the recent global crisis. Islamic finances core philosophy is equity based investments and this study is a humble attempt to empirically substantiate its benefits.

The Effects of Macroeconomic and Bank Specific Factors on Nonperforming Financing in Sharia Commercial Bank in Indonesia Keti Purnamasari; Tariza Putri Ramayanti
Global Review of Islamic Economics and Business Vol 7, No 2 (2019)
Publisher : Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga

Financing risk is often associated with the risk of default. This risk refers to the potential losses faced by the bank when financing provided to debtors is stuck. The purpose of this paper is to analyze the effect of macroeconomic and bank specific factors on nonperforming financing in sharia commercial bank in Indonesia. The macroeconomic factors included; inflation and Bank Indonesia Certificates Sharia (SBIS). The Bank specific factors included; Capital Adequacy Ratio (CAR), Return on Assets (ROA), Operations Expenses to Operations Income (BOPO), and Financing to Deposit Ratio (FDR). The period covered under this study was January 2011 to December 2017. Data was collected from Bank Indonesia website and Indonesia Banking Statistics. Contrary to other studies, the inflation and SBIS have not been found statistically significant with nonperforming financing. The results also show that NPF can be explained mainly by Bank specific factors. CAR, ROA, and FDR have a negative effect on NPF while BOPO has a positive effect on NPF.

Shariah Screening methodologies: SAC-SC vs DJIM Comparative study and impact assessment on their performance Mohamed Yassine Khouildi; Mohamed Bengana; Mounir Rakibi; Mohamed Redouane Riad; Suhaib Aldirchawi
Global Review of Islamic Economics and Business Vol 5, No 2 (2017)
Publisher : Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga

Purpose – The purpose of this paper is to compare between two screening methodologies in terms of applied methods and the impact assessment. Other than this the paper measures the performance of screened stocks in terms of risk & return and compare it to the conventional onesDesign/methodology/approach – The methods used are a combination of archival and bibliographic research based on some previously published articles. Also the papers use secondary data from published reports.Findings – The paper identifies the impact assessment of the screening methodologies and how investors will not sacrifice part of their returns in order to achieve their moral and ethical values.Originality/value – Many studies compared the two screening indices in term of methodologies; however this paper investigates and uses a quantitative analysis on the impact and performance of the screening methodologies. Furthermore it compares the stages of screening between Shariah Advisory Council of Securities commission (SAC-SC) and Dow Jones Islamic Market Index (DJIM)Keywords – screening, methodologies, impact assessmentPaper type – comparative case study

Factors Influence Intention to Opt for Islamic Investment Schemes among Market Players Muhammad Abduh; Tuan Muhd Taufik Tuan Hussin
Global Review of Islamic Economics and Business Vol 6, No 2 (2018)
Publisher : Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga

Employing theory of reasoned action with religiosity as its additional construct in the model, this paper is aimed at examining factors influence the intention of investors to opt Islamic investment schemes in Malaysia Islamic capital markets. As many as 120 questionnaires were collected from market players in Bursa Malaysia using online survey. Afterwards, the data collected were analyzed using structural equation model to reveal the relationship of variables tested in the proposed model. The result shows that religiosity and subjective norms appeared to be the significant factors affecting intention to choose Islamic investment schemes in Malaysia Islamic capital markets. Interestingly, despite its significant role shown in previous studies, this study has shown insignificant level of the attitude in predicting the intention behavior. The managerial implications are discussed in this paper.

Analysis of Comparative Advantage Strategy Implementation on The Customer Loyalty of BRI Sharia in DIY Awis Hardjito
Global Review of Islamic Economics and Business Vol 3, No 1 (2015)
Publisher : Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga

Competition occurs among Islamic banks increasingly tight. In order to survive and remain competitive, an Islamic bank should have an identity and uniqueness which differentiates with other Islamic banks. BRI Sharia in order to enter the world of competition and survive should implement strategies remain competitive advantages to maintain the loyalty of its customers. These strategies are divided into cost leadership, differentiation and focus. The expectation by applying one of these strategies, BRI Sharia can retain the loyalty of the customers and gain new customers. This research aimed to determine which strategies are applied by BRI Sharia. The strategies of the competitive advantage created by M. Porter's such as cost leadership, differentiation, and focus affect significantly on customer loyalty. Data processing was performed using SEM analysis (Structural Equation Model). The results showed that customer loyalty variation can be explained by variabel s of cost leadership, differentiation and focus strategies. From the test results we can conclude that only cost leadership strategy variable that significantly affect customer loyalty of BRI Sharia.

Relationship between Islamic Stock Prices and Macroeconomic Variables: Evidence from Jakarta Stock Exchange Islamic Index Muhammad Rizky Prima Sakti; MD. Yousuf Harun
Global Review of Islamic Economics and Business Vol 1, No 1 (2013)
Publisher : Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga

This paper attempts to analyze the relationship between Jakarta Stock Exchange Islamic Index (JII) and selected macroeconomic variables namely exchange rate, industrial production, inflation rate, and money supply. We used monthly data from January 2000 toDecember 2010.The methodology used in this paper is time series techniques of co-integration and vector autoregression (VAR). In the analysis, we rely on variance decompositions and impulse-response functions to capture the strength of interactions among variables. The results revealed that there is co-integration between Islamic stock prices and macroeconomic variables. Specifically, Indonesian Islamic stock market are driven more by domestic factors. These macroeconomic factors considered to be emphasized as the policy instruments by the governments in order to stabilize Islamic stock prices.

Factors Influence Intention to Opt for Islamic Investment Schemes among Market Players Muhammad Abduh
Global Review of Islamic Economics and Business Vol 5, No 1 (2017)
Publisher : Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga

Employing theory of reasoned action with religiosity as its additional construct in the model, this paper is aimed at examining factors influence the intention of investors to opt Islamic investment schemes in Malaysia Islamic capital markets. As many as 120 questionnaires were collected from market players in Bursa Malaysia using online survey. Afterwards, the data collected were analyzed using structural equation model to reveal the relationship of variables tested in the proposed model. The result shows that religiosity and subjective norms appeared to be the significant factors affecting intention to choose Islamic investment schemes in Malaysia Islamic capital markets. Interestingly, despite its significant role shown in previous studies, this study has shown insignificant level of the attitude in predicting the intention behavior. The managerial implications are discussed in this paper. Keywords: Investors’ behavior, Islamic investment, Bursa Malaysia

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Aris Munandar

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Aris Munandar

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Jl. Laksda Adisucipto, Papringan, Caturtunggal, Kec. Depok, Kabupaten Sleman, Daerah Istimewa Yogyakarta 55281

Location
Kab. sleman,

Daerah istimewa yogyakarta

INDONESIA

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Home Page

OAI Link

Editorial Team

Contact

Reviewer

Google Scholar

Contact Name Aris Munandar

Contact Email Aris Munandar

Phone +6282145485255

Journal Mail Official -

Editorial Address Jl. Laksda Adisucipto, Papringan, Caturtunggal, Kec. Depok, Kabupaten Sleman, Daerah Istimewa Yogyakarta 55281

Location Kab. sleman, Daerah istimewa yogyakarta INDONESIA

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Abstract

Contact Name
Aris Munandar

Contact Email
Aris Munandar

Phone
+6282145485255

Journal Mail Official
-

Editorial Address
Jl. Laksda Adisucipto, Papringan, Caturtunggal, Kec. Depok, Kabupaten Sleman, Daerah Istimewa Yogyakarta 55281

Location
Kab. sleman,

Daerah istimewa yogyakarta

INDONESIA