Evaluating the Customer Satisfaction’s Effect on Murabahah and Mudarabah Financing in Islamic Banking

There are a considerable number of studies on the service quality dimensions of banking industries, but little researches were carried out on the product quality dimensions, and this led to the minimal understanding of the impact of product quality dimensions from the customers’ standpoints, This research sought to identify the impact Islamic banking products (Murabahah and Mudarabah) dimensions on customer satisfaction. The study surveyed Islamic bank customers (users of the Islamic bank’s products in Nigeria) using questionnaires to seek responses, a convenient sampling technique was conducted to reach out to customers, and the use of PLS-SEM 3 was employed for the analysis of the data. The result model shows an R2 value of 0.414 (for Murabahah), which means 41% of the variance in customer satisfaction is explained by the exogenous constructs of perceived quality, cost, convenience and compliance of Murabahah, and R2 value of 0.309 (for Mudarabah) which means 31% of the variance in customer satisfaction is explained by the exogenous constructs of perceived quality, cost, convenience and compliance of Mudarabah. The values of R2 for Murabahah and Mudarabah show that the constructs were moderate in determining the satisfaction level of customers as they produced 0.414 and 0.309 respectively

Coordination & cooperation in financial regulation: Do regulators comply with banking culture?

This paper identifies cultural gaps as a possible stumbling block in the efficient exchange of information and the sharing of problems and goals among regulators and the industry, with respect to the recent innovations introduced in the financial sector, which are orienting the supervisory authorities towards the adoption of new interaction models with the supervised financial intermediares.

Banking regulation towards advisory: the “culture compliance” of banks and supervisory authorities

The financial regulation is moreover based on self-regulation and the coordination of external and internal supervision. This determines an evolution in the role played by the supervisory authorities, and in the manner in which they interact - with and almost advisory function - with the governance bodies of the banks, such as the board of directors, top management and external and internal auditors. The capacity to adequately perform such advisory functions entails the existence of consistent objectives, consistent knowledge and consistent cultural models. Our paper points at cultural gaps as a possible stumbling block in the efficient exchange of information and the sharing of problems and goals among regulators and the industry. We develop a cultural survey based on the application of a text-analysis model to a corpus of reference texts produced by two samples, drawn from among the supervisory bodies and the supervised entities. The empirical survey results reveal numerous fields of cultural differentiation, alongside several important areas in which the orientations of the two parties tend to overlap.Financial Regulation; Banking Culture; Cultural Compliance

Service Quality and Customer Loyalty in a Post-Crisis Context. Prediction-Oriented Modeling to Enhance the Particular Importance of a Social and Sustainable Approach

Research into the influence of service quality on customer loyalty has typically focused on confirming isolated direct causal influences regarding particular dimensions of quality, usually undertaken in the context of positive, firm-customer relations. The present study extends analysis of these factors through a new lens. First, the study was undertaken in a market context following a crisis that has had far-reaching consequences for customers’ relational behaviors. We explore the case of the Spanish banking industry, a sector that accurately reflects these new relational conditions, including a rising demand for more socially responsible banking. Second, we propose a holistic model that combines the effects of four key factors associated with service quality (outcome, personnel, servicescape and social qualities). We also apply an innovative predictive methodological technique using partial least squares (PLS) and qualitative comparative analysis (QCA) that enables us not only to determine the direct causal effects among variables, but also to consider different scenarios in which to predict customer loyalty. The results highlight the role of outcome and social qualities. The novelty of the social qualities factor helps to underscore the importance of social, ethical and sustainable practices to customer loyalty, although personnel and servicescape qualities must also be present to improve the predictive capability of service quality on loyalty

Actor perception in business use case modeling

Mainstream literature recognizes the validity and effectiveness of use cases as a technique for gathering and capturing system requirements. Use cases represent the driver of various modern development methods, mainly of object-oriented extraction, such as the Unified Process. Although the adoption of use cases proliferated in the context of software systems development, they are not as extensively employed in business modeling . The concept of business use case is not a novelty, but only recently did it begin to re-circulate in the literature and in case tools. This paper examines the issues involved in adopting business use cases for capturing the functionality of an organization and proposes guidelines for their identification, packaging, and mapping to system use cases. The proposed guidelines are based on the principle of actor perception described in the paper. The application of this principle is exemplified with a worked example aimed at demonstrating the utility of the proposed guidelines and at clarifying the application of the principle of actor perception. The worked example is based on a series of workshops run at a major UK financial institution

The New Capital Adequacy Framework: Institutional Constraints and Incentive Structures

This paper considers the implementation challenges facing the Basel Committee's new proposals on bank capital standards. When compared with the existing Capital Accord, the proposals represent a shift across two intersecting dimensions-regulatory versus economic capital, and rules-based versus process-oriented regulation. On minimum capital standards, the case for using external ratings may be stronger than has been recognized, given the divergences in the purpose and design of internal ratings. On supervisory review, ensuring comparability among supervisors and building supervisory capacity will present serious challenges. On enhancing market discipline, incentives for markets to exercise discipline will be required.

Credit risk in European banks: The bright side of the internal ratings based approach

This paper investigates the accuracy of internal rating based (IRB) models in measuring credit risk. We contribute to the growing debate on the current prudential regulatory framework by investigating the use of validated IRB models in promoting efficient risk management practices. Our empirical analysis is based on a novel panel data set of 177 Western European banks observed from 2008 to 2015, in the aftermath of the financial and economic crisis. We find that IRB banks were able to curb the increase in credit risk driven by the macroeconomic slowdown better than banks under the standardized approach. This suggests that the introduction of the internal ratings based approach by Basel II has promoted the adoption of stronger risk management practices among banks, as meant by the regulators

The State of e-Banking Implementation in Nigeria: A Post-Consolidation Review

The most widely used e-Banking instrument in �igeria is e-Payment, particularly the automatic teller machine (ATM) card. However, with the adoption of e-Banking by all the banks in �igeria, the volume of cash in circulation has continued to increase pre-and-post bank recapitalization/consolidation exercise. Furthermore, some of the 25 banks that survived the exercise were found lately to have depleted their capital base and have lost credibility before the consumers, e-Banking implementation notwithstanding. Therefore, in this paper, we review the state of e-Banking implementation in �igeria and evaluate the influence of trust on the adoption of e-Payment using an extended technology acceptance model (TAM). Similarly, we investigate organizational reputation, perceived risk and perceived trust in the management of banks as a factor for enhancing customer loyalty. The findings in this work reveal that perceived ease of use and perceived usefulness are not only antecedent to ebanking acceptance, they are also factors to retain customers to the use of e-banking system such as organizational reputation, perceived risk and trust