Withdrawal behavior of Malaysian Islamic bank customers: empirical evidence from three major issues

As interest is prohibited, the reliance of Islamic banking towards bank deposits from depositors is higher than conventional banking. Efforts that could help in preventing funds withdrawal by the depositors thus become necessary in order to avoid bank instability. This study is aimed at investigating factors that may influence the withdrawal behavior of Malaysian Islamic banks customers. The withdrawal behavior studied here is in conjunction with three major issues which are (i) issues of non-shariah compliance, (ii) lower returns as compared to other banks, and (iii) rumors about forthcoming financial crisis that may affect the performance of the bank. The research employed a direct survey through a self-administered questionnaire handed out to Islamic banks customers in Malaysia using the multi-stage sampling technique. The intention to avoid interest, type of account, working status, bank status, and bank ownership are the significant factors that could influence withdrawal behavior in model 1. Working status and bank ownership are the factors which influence withdrawal behavior in model 2. Lastly, for model 3, factors that emerged to be significant are type of account, total deposit in bank, awareness on deposit insurance, intention to avoid interest and perception that Islamic banks are less affected by the crisis

Prioritizing issues in Islamic economics and finance

The purpose of this study is to investigate the opinion of scholars of Islamic economics and finance upon which issues should be given higher priority based on its roles in achieving the ultimate goals of Islamic economics and finance. Library study is firstly used to determine research areas in Islamic economics and finance. Afterwards, the pairwise comparison matrix is developed and distributed among the Islamic economics and finance scholars in Malaysia. Analytic hierarchical process technique is used as the means to rank the importance of alternatives based on defined research areas and small sample size. The library study found that there are six major research areas in Islamic economic and finance i.e. Islamic banking, other Islamic financial institutions, zakat-waqaf and poverty alleviation, Islamic monetary system, philosophical issues and fiqh almuamalat al-maliyyah. Using Analytical Hierarchy Process, the result shows that area of zakat-waqaf and poverty alleviation is considered as the most important area followed by monetary system including Islamic currency. Despite the large number of studies done in Islamic banking, the respondents have considered that the area is not able to answer or give solution to the ultimate goal of the establishment of Islamic economic and finance

Islamic banking service quality and withdrawal risk: the Indonesian experience

This paper aims first to evaluate the service quality of Islamic banking and second to explore the withdrawal behavior of Islamic banking depositors based on their evaluation towards its service quality in the context of Indonesia. Islamic banking service quality. Next, we use central tendency measurement to extract the information of depositors’ withdrawal behavior towards those dimensions. Afterwards, the importance and performance analysis (IPA) was employed to evaluate the level of Indonesian Islamic banking service quality

KHALED M. ABOU EL FADL: Menuju Pembacaan Otoritatif Atas Hadis Nabi Melalui Hermeneutika Negosiatif

ABSTRAK INDONESIAArtikel ini membahas tentang hermeneutika negosiasif dari pemikiran tokoh Islam kontemporer, Khaled M. Abou el Fadl. Inti dari analisis hermeneutika ini, terletak pada peran pengarang, teks, dan pembaca dalam menentukan makna. Di mana penentuan makna merupakan hasil proses negosiasi dari ketiga aspek tersebut secara berimbang tanpa adanya dominasi salah satu pihak, sehingga makna yang dihasilkan sesuai dengan apa yang dikehendaki dan tidak ada dominan atau otoritas dari penafsir/pembaca (reader). Melalui teori ini, Khaled mencoba mengkonstruksi idenya tentang otoritas dalam membaca teks. Khaled juga membatasi otoritarianisme pembacanya pada lima syarat, yaitu: kejujuran dalam memahami perintah Tuhan, ketekunan, kelengkapan, rasionalitas, menahan diri. Pemikiran ini hadir sebagai tanggapan atas kecemasan Khaled atas fatwa sewenang-wenang yang diajukan oleh Saudi Arabian CRLO (Council for Scientific Research and Legal Opinions), di mana mereka menggunakan hadis misoginis sebagai otoritas tertinggi untuk melegitimasi keabsahan fatwa mereka. Dari penelitian ini terlihat bahwa pola pikir Khaled tidak serta merta mengungkapkan hadits Nabi, namun yang paling menarik adalah upayanya untuk menentukan makna hadits melalui teori yang ia hasilkan yaitu melalui hermeneutika negosiatif.ABSTRAK INGGRISThis article discusses the negotiated hermeneutics from the ideas of contemporary Islamic thinker Khaled M. Abou el Fadl. The essence of the hermeneutic analysis of the idea lies in the role of the author (writer), text (text), and reader (reader) in determining meaning. The determination of the meaning of the results of the negotiation process from the three aspects in a balanced manner without any domination by either party. Through this theory, Abou el Fadl tries to construct his idea of the authority in reading the text. The concept of Islamic authority in its construction as a form to bridge God's will. Khaled limits the authoritarianism of readers to five conditions, namely: honesty in understanding God's commands, diligence, comprehensiveness, rationality, self-restraint. This idea came as a response to Khaled's anxiety over arbitrary fatwas put forward by the Saudi Arabian CRLO (Council for Scientific Research and Legal Opinions), in which they used misogynistic traditions as the highest authority to legitimacy the validity of their fatwa. From this study, it can be seen that Khaled's mindset is not necessarily revealing the Prophet's hadith, but what is most interesting is his attempt to determine the meaning of hadith through theory using negotiated hermeneutics

HUKUMAN FISIK TERHADAP SANTRI DITINJAU DARI PERSPEKTIF PENDIDIKAN ISLAM DAN PENERAPANNYA DI PESANTREN (Studi pada Pesantren Raudhatul Ulum Sakatiga dan Pesantren Syafa’atut Thullab Bakung)

ABSTRAK Penelitian disertasi yang berjudul “Hukuman Fisik Terhadap Santri Ditinjau Dari Perspektif Pendidikan Islam dan Penerapannya di Pesantren (Studi pada Pesantren Raudhatul Ulum Sakatiga dan Pesantren Syafa’atut Thullab Bakung)” bertujuan untuk menganalisis, menginterprestasikan dan mengevaluasi hukuman fisik terhadap santri ditinjau dari perspektif pendidikan Islam dan penerapannya pada Pesantren Raudhatul Ulum Sakatiga dan Pesantren Syafa’atut Thullab Bakung. Prosedur penelitian yang digunakan adalah pendekatan desain kualitatif dengan metode penelitian studi kepustakaan, penelitian lapangan (studi kasus), dan penelitian evaluasi. Pengumpulan data dilakukan dengan metode studi pustaka, observasi, wawancara, dan dokumentasi. Data yang terkumpul dianalisis yakni dengan cara reduksi data, triangulasi, display data dan verifikasi data. Pengujian keabsahan data yakni dengan cara kredibilitas, transferabilitas, dependabilitas dan konfirmabilitas. Hasil penelitian ini menunjukkan: (1) Paradigma hukuman fisik dalam perspektif pendidikan Islam berdasarkan teks al-Qur’an dan Hadist Nabi Saw. serta pendapat para ulama bahwa dalam mendidik peserta didik, Islam membolehkan penerapan hukuman fisik sebagai sarana untuk meluruskan dan menyadarkan peserta didik dengan sesuatu yang tidak menyakitkan atas kekeliruannya. Tentu saja yang dimaksud hukuman fisik misalnya memukul adalah pukulan yang bertujuan untuk mendidik dan tidak menyakitkan. Namun demikian, kebolehan tersebut bukan berarti pendidik dapat melakukan sekehendak hatinya, ada bagian anggota badan tertentu yang disarankan untuk dihindari dan anggota bagian mana yang diperbolehkan untuk dikenai hukuman fisik. Karenanya, apabila penerapan hukuman fisik harus dilakukan maka pendidik memilih bentuk hukuman fisik yang paling ringan akibatnya; (2) Bagi pesantren terutama pada Pesantren Raudhatul Ulum Sakatiga maupun Pesantren Syafa’atut Thullab Bakung, penerapan hukuman fisik terhadap santri tidak dipahami sebagai sebuah tindak kekerasan, tapi sebagai proses pendisplinan, pemeliharan, pembelajaran dan sekaligus penegakan HAM di lingkungan pesantren. Sehingga, dalam jangka panjang di harapkan out put pesantren dapat mengerti betul tentang HAM dan proses penegakkannya. Selain itu, praktik penerapan hukuman fisik terhadap santri yang diberlakukan di pesantren sesungguhnya tidak seradikal dan sekejam aksi kekerasan yang terjadi di luar dunia pesantren, seperti yang biasa terjadi di dalam sel tahanan atau camp militer. Sebab, tujuan dasar dari penerapan hukuman fisik terhadap santri di lingkungan pesantren adalah untuk menegakkan pendisiplinan bagi santri dan menjaga ketertiban di lingkungan pesantren, bukan sebagai aksi balas dendam atau adu kekuatan. Lebih dari itu, penerapan hukuman fisik terhadap santri adalah bentuk hukuman terakhir yang ditempuh setelah melalui proses sebelumnya yakni peringatan dan skorsing. Artinya, ketika santri yang melanggar sudah berubah dan kembali ke jalur yang benar setelah mendapat teguran dan skorsing, maka penerapan hukuman fisik terhadap santri tidak diberlakukan lagi; (3) Penerapan hukuman fisik terhadap santri di pesantren masih sangat relevan dengan perspektif pendidikan Islam. Bahkan dalam perspektif pesantren penerapan hukuman fisik sangat diperlukan dalam menegakkan disiplin bagi santri dan menjaga ketertiban di lingkungan pesantren. Pesantren tetap konsisten dan berpegang teguh dengan ajaran Islam yang selama ini dipelajari dan diakui kebenarannya, dan pesantren tetap yakin bahwa penerapan hukuman fisik adalah ajaran Islam yang sarat dengan makna dan mashalat bagi santri, serta tidak bertentangan dengan prinsip HAM

Deposit behaviour in Indonesia Islamic banking : do crisis and fatwa matter?

This paper attempts to examine factors that influence deposit behaviour of bank depositors in Indonesia Islamic banking. Several explanatory variables are tested namely interest rate, Islamic deposit rate, inflation, income as well as financial crisis. Cointegration test and impulse response functions are utilized to examine the long run and short run relationship among the variables. The period of analysis is from December 2000 to January 2011 (122 number of observation-monthly data). The results show that crisis has no significant impact on the volatility of Islamic banks deposits. This suggests that the Islamic banks’ expansion towards the real economic activities by partnership contracts is one of the best practices. It depicts also that depositors have a strong believe towards the resilience of Islamic banks against financial crisis and thus, they did not withdraw their money excessively during the crisis. However, it is also found that interest rate and income are still dominating the people’s decision to deposit their funds in Islamic banks which in turns, indicating the effectiveness of the anti-riba campaign in Indonesia is still low and thus, the strategy of educating the people need to be redesigned

The susceptibility of Islamic banks’ credit risk towards macroeconomic variables

Credit risk is the most anticipated risk in the banking system. It is one of the key elements to assess systemic risk and stress testing financial fragility which is very helpful to come up with macro-prudential surveillance in financial systems. Unlike the conventional banking system, there is dearth of empirical study on macro-credit risk in relation with Islamic banking. As such, further research regarding the stability of the Islamic banking industry has become imperative. Accordingly, this paper is aimed at determining and assessing the long run vulnerabilities of Islamic financing sustainability in term of its response to changes in key macroeconomic variables by using time series econometric approaches of cointegration and vector autoregression (VAR). Based on the result of simulating variance decomposition (VD) and impulse response function (IRF), it is found that, sufficient evidence of long-run relationship between credit risk ratio in Islamic banking industry and the selected macroeconomic variables exist. The exchange rate, supply side-inflation, and growth have been indicated to negatively influence credit risk rate in Islamic banking, while money supply and Islamic interbank money market rate positively affect the risk rate

Determinants of Islamic Banking Profitability in Malaysia

Islamic banks were experiencing tremendous growth by showing high profitability level and less affected by the financial turmoil. Thus, the objective of this paper is to investigate the impact of bank-specific as well as industry-specific and macroeconomic indicators upon Islamic banks profitability, particularly in Malaysia, for the period of 2006 to 2010. Using pooled regression analysis, and by taking 10 Islamic banks/windows, the result shows that the bank size is a vital importance in affecting its profitability. In addition, financial market development and market concentration has a significant positive impact in determining profitability. Finally, from the macro-economic variables, inflation has a significant positive impact on Islamic banks’profitability which shows the different nature between Islamic and conventional banks

The Role of Stock Markets in Promoting Economic Growth in Malaysia: Islamic vis-vis Conventional

The purpose of this study is to evaluate the dynamic effects of both Islamic and conventional stock markets development on the economic growth, particularly in Malaysia. The model estimation used to explain the relationship is the autoregressive distributed lag model with the variable of FTSE BM Emas Shariah Index to represent Islamic securities and FTSE BM Composite Index to represent the conventional. The data coverage is from Q1:2000 to Q4:2011. The result shows that there is no evidence of co-integration between the conventional markets and economic growth while there is a co-integration found between Islamic markets and economic growth. Moreover, the relationship between the development of the Islamic stock markets and economic growth occurs to be bidirectional

What drives Islamic banks’ credit risk in the long run? a macroeconomic approach

Credit risk is the most anticipated risk in the banking system. It is one of the key elements to measure systemic risk and stress testing financial fragility which is very helpful to formulate macro-prudential surveillance in financial systems. Unlike the conventional banking, the empirical evidence of macro-credit risk link in Islamic banking is still considered as an underdeveloped area. Consequently, a further research regarding the stability of the Islamic banking industry has risen to the substantial agenda. Hence, this paper is aimed at determining and assessing the long run vulnerabilities of Islamic financing quality as a response to changes in key macroeconomic variables by using time series econometric approaches of cointegration and vector autoregression (VAR). By simulating variance decomposition (VD) and impulse response function (IRF), it is found that there is evidence of long-run relationship between credit risk ratio in Islamic bank and the selected macroeconomic variables. The exchange rate, supply side-inflation, and growth have negatively driven credit risk rate in Islamic banking, while money supply and Islamic interbank money market rate have positively driven the risk rate