Conceptual Framework on Integrated System of Sustainability Performance on Islamic Perspectives

This research reviewes previous research on the topic of sustainability and identifies appropriate indicators in Islamic perspective. This research conducts a qualitative method starting from the exploration of relevant issues and problems around Islamic Banking Sustainability Performance through the literature reviews. Qualitative data analysis, data reduction and data presentation from relevant journals, books, articles and proceeding enrich the development of conceptual framework. To consolidate the literature found, several face to face interviews with relevant experts in Indonesia Islamic banking are conducted in order to obtain deeper insight into Islamic Banking Sustainability Performance. The data captured from literature and interviews then be analyzed by using NVivo tools. This software has high capability in data searching, compiling, and preparation of the grounded theory. The graphics capability of the diagram shown in the preparation of theory is awakened. As the results, a conceptual framework on integrated system of islamic banking sustainability performance is successfully developed. Several indicators and contructs which performed this framework were identified through NVivo analysis of literature reviews and interviews. Three sustainability perspectives viz environment, social and economic aspects integrated with financial islamic rules on fair, balance, middleness, grace (rahmah), mandate, thaharah, right, and ilm nafi (expediency science) complement the development of framework. NVivo as a qualitative analysis tool is successfully managed the data transcription from literature and interviews towards the performing of conceptual framework. Keywords: Integrated system, Islamic Banking, Sustainability, Performance Measurement

Financial integration, banking supervision and sustainability of the Western Balkan countries

Purpose: This paper examines the need of financial integration of Western Balkan countries as the main indicator of the region’s economic growth. Design/Methodology/Approach: We provide an overview in order to explain what the financial system in the region is. Primarily we concentrate in the banking sector and the nonperforming loans in the region. They require attention and standardization of regulatory classification. By establishing a regional platform it would be of additional value and would help overcome the limited visibility in some of the countries. Findings: Currently the challenges for financial stability in the Western Balkan area comprise non-performing loans, low capital adequacy and moderate growth of credit in the economy. The banking sector is reducing the debt due to required financial stability measures of the European banking authorities. As these countries integrate their financial institutions and markets into the European financial system, on the path towards harmonization of national and European legislation, cooperation between financial entities in the Western Balkans becomes very important. The Western Balkan countries are in a different stage of development of banking sustainability and supervision and because of that there is a need for more integration with the European Banks and the respective regulators to ensure an adequate banking regime. Practical Implications: The article highlights the fact that Western Balkan countries need to intensify their reforms to build banking sustainability in order to meet the criteria for EU membership. Originality/Value: With this article we show that the Western Balkan countries in their integration processes must first align their local and European legislation and requirements.peer-reviewe

Alignment of Islamic Banking Sustainability Indicators with Sustainable Development Goals: Policy Recommendations for Addressing the COVID-19 Pandemic

Artigo publicado em revista científica internacionalThis study aims to establish the link of key Islamic banking sustainability indicators with the United Nations’ Sustainable Development Goals (UN SDGs) as a policy recommendation for sustainable development and to mitigate the distressing impacts of the COVID-19 pandemic on the triple bottom line (people, planet, and profit). To identify the key Islamic banking sustainability indicators, the authors selected the most cited sustainability measurement indexes in Islamic banking. Initially, the indexes were divided into 10 broader themes, and then the key Islamic banking sustainability indicators were shortlisted from each theme based on their high-frequency distribution. The shortlisted sustainability indicators were then ratified to be in line with Islamic philosophy based on “Maqasid al-Shariah” (objectives of Shariah) and were subsequently grouped into the three dimensions of economic, environmental, and social sustainability based on the axial coding method. Finally, the categorized sustainability indicators were aligned with the relevant UN SDGs through the axial coding method for policy formulation, and respectively 12 propositions were developed for policy formulation. This study labeled the methodological process of this study as the ECA method (exploration, categorization, alignment). The new ECA method offers a reverse extension in the “SDG compass” developed by the Global Reporting Initiative (GRI) for aligning business policies with the UN SDGs. The process of aligning Islamic banking sustainability indicators with the UN SDGs will provide a roadmap to recovery from the COVID-19 pandemic in terms of economic, environmental, and social issues. Due to the diversity of the UN SDG framework, it covers multiples aspects for sustainable development. Therefore, considering the UN SDGs in terms of various banking instruments will mitigate the multiple distressing impacts of COVID-19 on the triple bottom line (people, planet, and profit), it will also promote a sustainable development agenda.info:eu-repo/semantics/publishedVersio

THE INFLUENCE OF MARGIN MURABAHA RECOGNITION METHOTD ON ISLAMIC BANKING SUSTAINABILITY

The purpose of this study was to analyze the two method of margin murabaha recognition in Indonesian Islamic banking, they are proportional and annuity. How they effect business sustainability expressed by level of risks and the soundness of Islamic banks. The object of research is Bank Muamalat Indonesia according to its Annual Financial Statements in period 2001-2014. This research using SEM analysis to see the influence of both methods. The result of this study, suggesting that proportional method has 45% influence on the level of risk and 23% of the bank’s soundness. The annuity method has 51% on the level of risk and 57% of the bank’s soundness negativel

Corporate governance for Islamic banking sustainability and caux round table principles

Corporate Governance for Islamic Banking Sustainability and Caux Round Table Principles is an attempt to give a balanced view of both Western and Islamic perspectives. The review of the literature, explanations of the verses of the Qur’an that relate to corporate governance (CG) theories and Islamic perspective to it will enrich the field. This paper takes those traditional theories in literature and interprets them from an Islamic perspective, using more international perspectives especially for the Muslim world. Since failure to make profit alone is not enough reason of defaulting corporate entities rather non-compliance of shari’ah and Islamic ethical guidelines and lack of CSR concern is equally important in defining failur

Alignment Of Islamic Banking Sustainability Indicators With Sustainable Development Goals: Policy Recommendations For Addressing The COVID-19 Pandemic

This study aims to establish the link of key Islamic banking sustainability indicators with the United Nations’ Sustainable Development Goals (UN SDGs) as a policy recommendation for sustainable development and to mitigate the distressing impacts of the COVID-19 pandemic on the triple bottom line (people, planet, and profit). To identify the key Islamic banking sustainability indicators, the authors selected the most cited sustainability measurement indexes in Islamic banking. Initially, the indexes were divided into 10 broader themes, and then the key Islamic banking sustainability indicators were shortlisted from each theme based on their high-frequency distribution. The shortlisted sustainability indicators were then ratified to be in line with Islamic philosophy based on “Maqasid al-Shariah” (objectives of Shariah) and were subsequently grouped into the three dimensions of economic, environmental, and social sustainability based on the axial coding method. Finally, the categorized sustainability indicators were aligned with the relevant UN SDGs through the axial coding method for policy formulation, and respectively 12 propositions were developed for policy formulation. This study labeled the methodological process of this study as the ECA method (exploration, categorization, alignment). The new ECA method offers a reverse extension in the “SDG compass” developed by the Global Reporting Initiative (GRI) for aligning business policies with the UN SDGs. The process of aligning Islamic banking sustainability indicators with the UN SDGs will provide a roadmap to recovery from the COVID-19 pandemic in terms of economic, environmental, and social issues. Due to the diversity of the UN SDG framework, it covers multiples aspects for sustainable development

The Effect of Corporate Sustainability Disclosure on Cost of Capital in ASEAN Banking Sector: The Moderating Role of Financial Performance

This study aims to investigate the effect of overall and partial sustainability disclosure to corporate cost of capital, and also examine the moderating effect of financial performance on the relationship. This research adopted the GRI G3.1 indeces to measure sustainability disclosures. The cost of capital was calculated by weighting all source of cost of capital in WACC method, while financial performance is measured by three proxies; CAR, ROE, and NIM. Population of this research was all listed banks in ASEAN countries’ stock exchange market for the year of 2011-2014. Partial Least Squares (PLS) Analysis on SmartPLS 3.0 was used to examine the data. This research indicated that banks with more sustainability disclosure attracts lower cost of capital. However, if it examined partially, the economic aspects tend to increase the cost of capital. Furthermore, better financial performance is shown to have no effect on the relationship between overall sustainability aspects disclosure and cost of capital. Nevertheless, partially investigation found that a better financial performance strengthen the effect of social aspect diclosure in lowering cost of capital

Exploring strategies for leaders of microfinance banks in Nigeria.

The purpose of this phenomenological study was to explore strategies microfinance bank executives use to maintain business sustainability. The concepts of microfinance banking, sustainability value, and strategic management theory formed the conceptual framework for this study. Twenty executives from microfinance banks in Anambra state of Nigeria participated in semi-structured interviews. The data analysis process involved the use of Moustakas’ modified van Kaam process, which resulted in the emergence of three themes: strategic management, fear of microlending, and maintaining sustainability. The findings indicated the practice of strategic management, but indulgence in commercial activities instead of microlending to maintain business sustainability. The outcome reinforced the necessity for a strategic management focus on the expansion of microlending services, implementation of best practices, and technological input

Exploring strategies for leaders of microfinance banks in Nigeria.

The purpose of this phenomenological study was to explore strategies microfinance bank executives use to maintain business sustainability. The concepts of microfinance banking, sustainability value, and strategic management theory formed the conceptual framework for this study. Twenty executives from microfinance banks in Anambra state of Nigeria participated in semi-structured interviews. The data analysis process involved the use of Moustakas’ modified van Kaam process, which resulted in the emergence of three themes: strategic management, fear of microlending, and maintaining sustainability. The findings indicated the practice of strategic management, but indulgence in commercial activities instead of microlending to maintain business sustainability. The outcome reinforced the necessity for a strategic management focus on the expansion of microlending services, implementation of best practices, and technological input

A Multi-Attribute Utility Model for Performance Evaluation of Sustainable Banking

In this study, we develop a performance evaluation model based on a multi-attribute utility approach aiming at reaching the sustainable banking (SB) status. This model is built accounting for various banks' stakeholders in a win-win paradigm. In addition, it offers the opportunity for adopting a global measure of performance as an indication of a bank's sustainability degree. This measure is referred to as banking sustainability performance index (BSPI). This index may constitute a basis for ranking banks. Moreover, it may constitute a bridge between the assessment types of financial and extra-financial rating agencies. A real application is performed on three French banks