31 research outputs found
Comparative Analysis of the Financial Performance of Bank NTB Syariah Before and After Conversion
Bank NTB Syariah officially converted on 28 September 2018. The conversion had a positive impact but did not guarantee to improve the bank's financial performance after the conversion. The purpose of the study was to identify differences in the performance of financial ratios of liquidity, solvency, and profitability of Bank NTB Syariah before and after the conversion. Secondary data used from the financial statements of Bank NTB Syariah for the period of the third quarter of 2014 to the second quarter of 2022. Wilcoxon Signed Rank Test was used to identify whether there is a significant difference in the performance of financial ratios of Bank NTB Syariah before and after the conversion. The results obtained show that the NPF, CAR, ROA, ROE, BOPO and NOM ratios have significant differences before and after the conversion, while the FDR and DER ratios show no significant difference
Perbankan Syariah: antara Idealisme dan Oportunisme
There are two motives establishment of Islamic banks in Indonesia, first established with the aim to develop the Islamic financial institutions (idealistic group). Second, Islmaic banks founded because there is profitable business opportunities (opportunistic group). The purpose ofthis study was to examine whether there are differences in performance between the idealistic Islamic banking group with opportunistic group. Variables in this study arefinancing, banking risk and profitability of Islamic banking. The populationin this study wereall Islamic banks in Indonesia that divided into idealist goup and opportunist group. The results showed that financing by the opportunist group dominated by financing based on profit margin concept or trade concept, while the financing portion of idealist group provides the finiancing base on profit sharing concept. In terms of risk aspect, there is a significantdifference in liquidity risk (FDR) and operating risk (BOPO) between groups of idealists byopportunists, while the risk capital(CAR) and risk financing (NPF) the difference was notsignificant. From the aspect of profitability, there are significant differences between idealist group and opportunists group
MARKET POWER, BANK-SPECIFIC FACTORS, AND MACROECONOMIC EFFECTS ON BANKING PROFITABILITY IN INDONESIA: BEFORE AND AFTER THE COVID-19 PANDEMIC
This paper examines the impact of market power, bank-specific factors, and macroeconomic changes on profitability in conventional and Islamic banking in Indonesia before and after the COVID-19 pandemic. The data was collected quarterly from 6 conventional banks and 6 Islamic banks during the period from the second quarter of 2014 to 2023, and analyzed using a panel data regression model approach. The dependent variable is bank profitability, measured using the return on asset proxy (ROA) and net interest margin (NIM) / net operating margin (NOM); while the independent variables are concentration ratio (CR), third-party funding (TPF), capital adequacy ratio (CAR), non-performing loan (NPL), operating expenses to operating income (BOPO ratio), gross domestic product (GDP), inflation, exchange rate, and dummy variables. The findings demonstrate that the COVID-19 pandemic has had a detrimental impact on both types of banking, with Islamic banking experiencing a more significant impact than the conventional banking. Furthermore, the TPF, BOPO ratio, exchange rate, and inflation have a comparable impact on the profitability in both types of banking. Similarly, the market power, NPL, CAR, and GDP have distinct impact on the two types of banking, demonstrating disparities in operational features and industry competitiveness levels.JEL: L16, E32, G21
An Empirical Analysis Of Marketing Activities in Indonesian Islamic Banking Industry
ABSTRACT
Despite the fact that Indonesia is a predominantly Muslim country, the market share of Islamic banking sector in Indonesia stands around 4 percent in 2011 (Indonesian Central Bank, 2012:127). Although a plethora of study regarding the Indonesian Islamic banking industry has been conducted, not many of them touch the issue of low market share from marketing perspectives.
This research aims at exploring and examining the marketing developed and utilised by the Islamic banking industry in Indonesia. In doing so, this study aims at measuring the perceptions, attitudes, and opinions of the participants having accounts in Islamic banks in evaluating various dimensions of Islamic banking marketing in terms of process, consequence and outcome as well as their general perceptions on Islamic finance and banking. The study also aims to evaluate the marketing of Islamic banks through the norms of the Islamic moral economy as well as the perceived practices of marketing activities.
During the process of primary data collection, 1063 questionnaires were gathered and were divided into three categories: conventional banking only depositors (412 respondents), dual banking only depositors (523 respondents), and Shari’ah banking only depositors (128 respondents). In addition, interviews were conducted by leading individuals from the Islamic banking industry. Apart from that secondary data collection was also conducted from various secondary sources.
In general, one could argue that the three group of respondent share similar demographical characteristics. For Shari’ah banking only depositor, the only difference lies in respondents’ marital status, while for conventional banking only depositor, the difference lies in the income. In addition, almost all respondents prefer to bank with local Shari’ah bank. The primary reason for this is neither nationalism nor Halal and Haram issue, but rather the excellence of the product. In overall, respondents who are married, Muslim, highly educated, and have a domicile in Java are likely to go for Shari’ah bank. Knowledge regarding Shari’ah bank is also explored and it is shown that the amount of particular areas of knowledge gets better as with attachment to Shari’ah bank. Furthermore, respondents’ perceptions on several issues are also presented. In general, respondents perceive Shari’ah bank as positive except when they think that Shari’ah bank is only for the needy. Nevertheless, contrasting opinions could be seen on the perceptions regarding Shari’ah banking product: the more respondents get attached to Shari’ah bank, the more they perceive Shari’ah bank’s depositing product to be competitive. However, the more respondents get attached to Shari’ah bank, the more they perceive Shari’ah bank’s housing and vehicle financing product to be uncompetitive. On the issue of advertisement, the more respondents get attached to Shari’ah bank, the more positive is their opinions towards the statements. Moreover, when asked on the perceptions of advertisement characteristics, all respondents showed encouraging views. The same views are held regarding the actual experience with Shari’ah bank. Finally, the results regarding the perceptions in actual service and advertisement of Shari’ah bank vary across the three respondent groups.
In light of these findings, this research proposes that the industry applies greater transparency by having national Shari’ah rating system. In addition, the industry should concentrate more on the non-price aspects. Furthermore, Shari’ah banks should launch more innovative products and communicate those products in accordance to Shari’ah. Moreover, improvement in employees’ salary, training and facilities should be made in order to amplify the quality of service. Also, socialization should be conducted regarding the fact that the industry is not religion-specific
PERBANKAN SYARIAH: ANTARA IDEALISME DAN OPORTUNISME
There are two motives establishment of Islamic banks in Indonesia, first established with the aim to develop the Islamic financial institutions (idealistic group). Second, Islmaic banks founded because there is profitable business opportunities (opportunistic group). The purpose ofthis study was to examine whether there are differences in performance between the idealistic Islamic banking group with opportunistic group. Variables in this study arefinancing, banking risk and profitability of Islamic banking. The populationin this study wereall Islamic banks in Indonesia that divided into idealist goup and opportunist group. The results showed that financing by the opportunist group dominated by financing based on profit margin concept or trade concept, while the financing portion of idealist group provides the finiancing base on profit sharing concept. In terms of risk aspect, there is a significantdifference in liquidity risk (FDR) and operating risk (BOPO) between groups of idealists byopportunists, while the risk capital(CAR) and risk financing (NPF) the difference was notsignificant. From the aspect of profitability, there are significant differences between idealist group and opportunists group.</div
The Influence of corporate image on customer loyalty through customer engagement as a mediating variable: Study on customers of PT. Bank Syariah Indonesia in Malang City
The study analyzed how the influence of corporate image on customer loyalty to customers of PT. Bank Syariah Indonesia in Malang City, the influence of corporate image on customer engagement on customers of PT. Bank Syariah Indonesia in Malang City, the influence of customer engagement on customer loyalty to customers of PT. Bank Syariah Indonesia in Malang City and the influence of corporate image mediated by customer engagement on customer loyalty to customers of PT. Bank Syariah Indonesia in Malang City.This study the sample that will be taken is 211 Islamic bank customers spread across the city of Malang Data analysis using SEM-PLS. The results indicate all hypotheses are accepted, the first hypothesis test, it shows that corporate image has a positive and significant effect on customer loyalty. The second hypothesis shows that corporate image has a positive and significant effect on customer engagement. The third hypothesis show that customer engagement has a positive and significant effect on customer loyalty. The fourth hypothesis shows that the indirect effect of corporate image through customer engagement on customer loyalty has a positive and significant effect
Collaborative Innovation of Economics Society: Economics, Banking, and Islamic Economics Review
The Book is organized in 7 themes: Customer Perception of Islamic Bank Products; Sukuk Growth Comparation. Why Is Indonesia Lost With Malaysia ?; Tourist Perception And Preference On Islamic Tourism ; Analysis of Investment Level on Growth of Processing Industry Sector In Central Java ; Industrial Revolution 4; The Role of Investment in Industrial Growth in Indonesia ; Determinants of Unemployment in South Sumatera Province Using Panel Regression Analysis and The Dual Banking System In Indonesia
Determinan Financial Performance dengan Moderasi Islamic Financial Technology pada Bank Umum Syariah di Indonesia
Hasil Penelitian Pengaruh Langsung menunjukkan bahwa: 1) firm size berpengaruh negatif dan signifikan terhadap Financial Performance pada bank umum syariah di Indonesia. 2) current ratio berpengaruh negatif dan tidak
signifikan terhadap Financial Performance pada bank umum syariah di Indonesia. 3) debt to equity ratio berpengaruh negatif dan tidak signifikan terhadap Financial
Performance pada bank umum syariah di Indonesia. 4) Pemoderasi Islamic Fintech signifikan memperkuat pengaruh Firm Size terhadap Financial Performance pada
bank umum syariah di Indonesia. 5) Pemoderasi Islamic Fintech signifikan memperkuat pengaruh Current Ratio terhadap Financial Performance bank umum syariah di Indonesia. 6) Pemoderasi Islamic Fintech signifikan memperkuat pengaruh Debt to Equity Ratio terhadap Financial Performance bank umum syariah di Indonesia. Implikasi penelitian ini adalah: 1) Bagi bank umum syariah: agar lebih meningkatkan dan dan memperhatikan faktor kinerja keuangan yang menjadi dasar bagi masyarakat, nasabah dan investor ke bank umum syariah dengan adanya
adopsi Islamic financial technology guna untuk memudahkan nasabah untuk mengakses layanan produk bank umum syariah. 2) Bagi peneliti selanjutnya: agar lebih memaksimalkan dan dapat menambah atau menambah variabel lain dengan Islamic financial technology sebagai variabel moderasi
A strategy for strengthening public perception toward sharia banking
The number of Muslims in Indonesia reaches 85% of the total population of 270 million, but the progress of the Islamic economics in the country is stagnant. This is evidenced by the sharia banking assets, which only reach 5% and never increase every year. Therefore, it is necessary to investigate the primary obstacles hindering the development of sharia banking, from the perspective of sharia banking per se, and not from the society, as was the case in most previous studies. Besides, this study offers a strategy through a combination of Ibn Khaldun’s ashabiyyah and social construction theory of Peter L. Berger and Thomas Luckmann to strengthen the public perception toward sharia banking. The method used to reveal the obstacles is a field survey method in the form of an obstacle’s questionnaire with optional answers, which were distributed to several Islamic banks as samples, and then the most selected answers are calculated. Meanwhile, to find a strategic solution, it is necessary to review the literature using a philosophical approach. The results of a questionnaire that was distributed to several Islamic banks indicate three primary obstacles: low level of public awareness about the use of sharia banking (80 %), low level of public understanding and knowledge on sharia banking products (60 %), and low level of government support for sharia banking (40 %). Meanwhile, the theoretical application of asabiyyah theory with the help of the social construction theory can be used to strengthen public perceptions of Islamic banking through a three-stage process: externalization, objectivation and internalization