45 research outputs found

    Performance of Islamic banks based on maqasid al-sharīʿah: a systematic review of current research

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    Purpose – This study aims to systematically explore the approaches used by previous studies in measuring the performance of Islamic banks based on maqasid al-Sharīʿah. Design/methodology/approach – The data obtained in this study were derived from a review of empirical literature based on 15 articles published between 2012 and 2019. The sample articles on the performance of Islamic banks based on maqasid al-Sharīʿah were located by searching keywords in the most relevant social science research databases such as Scopus,Web of Science and EBSCOhost.\ud Findings – The emerging trend in measuring the performance of Islamic banks from the maqasid perspective highlighted that there is insufficient research on the determinants of Islamic bank performance. Practical implications – The reviews undertaken in this paper will resolve the literature gaps in the area of maqasid al-Sharīʿah and Islamic banks, as this study serves as a reference for scholars, academicians and interested researchers in Islamic banking and finance studies to pursue more research in this area. Social implications – Performance measurement based on maqasid al-Sharīʿah enhances society’s confidence in supporting Islamic banking practices, particularly among the Muslim community. Islamic banks can also be exemplary financial intermediaries supporting fair and equitable financial systems for the entire community. Originality/value – This paper is original in its nature, considering that understanding the relationship between maqasid al-Sharīʿah and the performance of Islamic banks is limited. This paper reveals a literature gap that can be explored by future studies theoretically and practically

    Personality factors influencing intention on cash waqf behavior

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    The issue of donation has received great attention around the world. According to Cheung & Chan, (2000) the public donation significantly contribute toward helping the poor and needy people living across the globe. Currently, waqf also can be recognized as one of the potential investment instruments which can be developed to fund various economic activities for the benefit of community (Hasan & Abdullah, 2008). Cash waqf is a trust fund established with money to support services to mankind in the name of Allah. Cash waqf development in Malaysia is rapidly growing in the last decade, leading a good understanding of donator perceptions is important for the waqf authority to improve the waqf system and consequently encourage people compliance waqf. The study was conducted through survey questionnaire among respondents in Malaysia. A number of 345 valid questionnaires had been analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The study found that only conscientiousness was significant to intention on cash waqf. Agreeableness has significance difference but the hypothesis unsupported due to both of this factor hypothesized as positive relationship with intention

    Protecting the interest of profit-sharing investment account holders in Islamic banks: the Nigerian experience

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    Islamic banks (IBs) have three major sources of funds namely: shareholders' funds, transaction deposits and Mudaraba deposits (by profit-sharing investment account holders-PSIAHs). Shareholders have their interest protected by the IBs’ directors, transactional accounts deposits are guaranteed by the banks. PSIAHs on the other hand have no representation on the banks’ board and their funds are not guaranteed. They rely on the goodwill of the banks’ board of directors and management to protect their interest and share profit (if any) from the investment of their funds and could lose some or all their capital if the banks incur losses. This could give rise to moral hazard and agency problem which put the PSIAHs at a disadvantage that calls for the establishment of corporate governance policies to protect their interest. The objective of this paper is to review corporate governance issues in the management of PSIAHs by IBs and to share Nigeria’s experience in the protection of the interest of PSIAHs. It is expected that the Nigerian experience could be a learning point for regulatory and supervisory authorities in other jurisdictions to replicate. The paper contributes to literature on the deposit practices by IBs which has been reported to be scarce

    Internet of things-based smart facilities management services successful implementation instrument development, validity, and reliability

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    The purpose of Internet of Things-based Smart Facilities Management Services (IoTbSFMS) is to increase the efficiency and effectiveness of facilities management services through improvement and innovation. Despite a common understanding that individual technology readiness and overall quality is an essential element in IoT-based technology success, there is a dearth of theoretical and empirical research on these elements as a facilitator of successful IoTbSFMS implementation. This study develops the IoTbSFMS validated instrument and proposes an integrated approach of instrument development through a multi-stage technique and rigorous statistical testing. Thirteen IoT experts had evaluated the content validity where two measurement items were excluded as per expert review's suggestion, which remaining 11 constructs and 58 measurement items. The process was followed by a pre-test assessment to determine the effectiveness of the measurement items. Finally, a pilot study assessment was conducted among 33 respondents. The collected data were analysed using SPSS25, Smart-PLS, and JASP software. As a result, the Content Validity Index (CVI) for the final IoTbSFMS constructs and items was deemed acceptable (CVI =0.82). The internal consistency reliability of the measurement instruments showed that the Cronbach's alpha and McDonald's omega for independent variables ranged from 0.682 to 0.989 and 0.685 to 0.989. These values suggest that all the constructs had acceptable validity and reliability. This paper contributes in encouraging researchers to look beyond the traditional approach in measuring the internal consistency reliability of the measurement instruments

    Issues and challenges of financial inclusion among B40 in the rural areas of Malaysia

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    Financial inclusion appears to be one of the main global agenda as it is an essential way for the reduction of poverty and increasing the economic growth of a country. Looking at the progress of financial inclusion in Malaysia, it is observed that there is a positive rate of financial inclusion in which in 2015, Bank Negara Malaysia (BNM) reported that Malaysia recorded a higher financial inclusion index of 0.9 out of 1 compared to 0.77 out of 1 in 2011. However, the recent report showed that there were remaining small segments of the society in Malaysia who still have limited access to FIs specifically the poor people, people living in the rural areas and workers with the low level of education. This study, therefore, analyzes the issues and challenges faced from the two perspectives of the financial institutions (FIs) and the rural B40 group concerning the way of pursuing the exclusive of FI. By using qualitative methodology, primary data is collected by conducting the semi-structured interview on four expert bankers from the financial institutions, a representative from AIM’s members (SAHABAT) and a representative from the B40 people in the rural areas of Malaysia. Based on the finding of the study, several barriers faced by the supply sides of the FIs includes: 1) high risk of cost and security 2) barriers in communication and understanding the financial education 3) lack of proof of documents. The other challenges are 1) competition with the conventional institutions 2) default risk due to non-payment and 3) internet connection problem. On the demand sides, the issues and challenges found include 1) lack of confidence 2) lack of proof of documents 3) lack of financial illiteracy 4) misuse of capital. Henceforth, the findings have significant implications to the Islamic banking and finance industry in exploring the current barriers faced in delivering financial inclusion to the lower segment of the society in Malaysia

    Implementation of Moratorium by Islamic Banks During the Covid-19 Pandemic: Maqasid Shariah Perspective

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    The Covid-19 pandemic has caused unprecedented health and economic crisis. The significant measures adopted by most countries to contain the virus by implementing movement control order (MCO) led to an economic downturn. The decision to implement the lockdown follows the rising number of Covid-19 cases in the country where 8,290 new Covid-19 cases reported on 28th May 2021. The lockdown will definitely cause hardship for the economic wellbeing of the people. Hence, this paper examines the central bank policy implication on the practice of moratorium after the first MCO on 18th March 2020 to support the people and company that badly affected by the lockdown for them to pay their loan and financing. The paper highlight the issue and challenges in the implementation of moratorium by Islamic banks. Furthermore, the study will provide policy implications and importantly to support the value-based intermediation for Islamic banks to fulfil the Maqasid Shariah