• The Journal of Asian Finance, Economics and Business
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• v.7 no.11
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• pp.747-757
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• 2020

This study investigates the impact of bank regulation and supervision on the efficiency of banking sectors on 108 Islamic banks from 26 countries offering Islamic banking and finance products and services. The technical efficiencies of individual Islamic banks have been analyzed using the data envelopment analysis method (DEA). The ordinary least square estimation method is employed to examine the impact of country supervision and regulation on the technical efficiency of Islamic banks. The empirical findings suggest that supervisory power, activity restrictions and private monitoring positively influence the efficiency of Islamic banks. The study revealed that Islamic banks that are operating in Middle East and North Africa (MENA) and middle-income countries are more technically efficient given the less stringent rules on capital requirement and we found that there is statistically significant evidence that higher capital requirements are negatively associated with the efficiency of Islamic banks. The empirical findings of this study are expected to help policy-makers and government officials to better understand how their decisions affect the performance.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.1267-1274
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• 2021

This study aims to analyze the effect of corporate communication and service quality on loyalty mediating satisfaction. The population of this study is 384 Islamic bank customers in North Sumatra. This research is quantitative research using the survey method. The number of research samples was 384 customers. Characteristics of this research sample were (1) Savings customers who actively carried out transactions in Islamic banks (2) Savings customers who had used bank services for at least 1 year (3) Savings customers who used services directly and individually. The data analysis technique used in this study was the Partial Least Squares-Structural Equation Model (SEM-PLS) analysis technique, using Warp-PLS 3.0 software. This study investigates the largest Islamic banks in North Sumatra, namely Bank Syariah Mandiri, Bank BNI Syariah, and Bank BRI Syariah. The results show that company communication has a positive and significant effect on satisfaction, service quality has a positive and significant effect on satisfaction, company communication has a positive and significant effect on loyalty, service quality has a positive and significant effect on loyalty, satisfaction has a positive and significant effect on loyalty. There is also a significant effect of satisfaction on the relationship between company communication and loyalty, and the relationship between service quality and loyalty. This study contributes to Islamic banking to increase customer loyalty.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.12
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• pp.245-254
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• 2020

This study investigates the impact of the country's governance on the revenue efficiency in the banking sectors of 42 Islamic banks in 15 countries offering Islamic banking and financial services. Technical efficiencies of individual Islamic banks were analyzed using the Data Envelopment Analysis method. The Ordinary Least Square estimation method is employed to examine the impact of country supervision and regulation on the technical efficiency of Islamic banks. With robustness check, the study assesses the impact of bank regulations and supervision on the efficiency of Islamic banks operating in different regions. The empirical findings suggest that supervisory power, activity restrictions, and private monitoring positively influence the efficiency of Islamic banks. On the other hand, we observe a negative impact of capital requirement on Middle East and North Africa (MENA) countries. The findings indicate that supervisory power, activity restrictions, and private monitoring positively influence the efficiency of Islamic banks in Asia, but vice versa on capital requirement in MENA countries. This study will contribute to the body of knowledge by assessing the types of reforms in bank regulations and supervision that work best for Islamic banks in order to increase the level of efficiency and the level of regulations and supervision of Islamic banks.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.3
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• pp.115-122
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• 2019

Under the Act No. 21 of 2008, Islamic banks in Indonesia as an intermediary institution are obligated to manage the resources simultaneously, the financial funds as well as the social funds, e.g. zakah, infaq, and sadaqah. This study aims to investigate the productivity change of social funds and financial funds of Islamic Banks in Indonesia. Non-parametric tests of Malmquist Productivity Index (MPI) is applied to annual data from period 2012 to 2017, encompassing post-reform of banking authority from Bank Indonesia to The Financial Services Authority (OJK) at 2012. The samples are nine Islamic banks in Indonesia which were able to provide the data during observation period. The results indicate that social funds are more productive than financial funds and productivity change tends to trade off. The productivity of social funds is progressed by 8.2% while the financial funds is regressed by 5.4%. Overall, the productivity change of Islamic banks is influenced by technological aspect rather than the efficiency aspect. Besides, BRI Syariah is the best performer in managing financial funds while BCA Syariah as the best performer in social funds. It implies that the policymakers may strengthen the supervisory and coaching to increase the Islamic banks' productivity in both activities.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.971-977
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• 2021

The purpose of this research paper is: (1) to describe the service quality index; (2) describe the data quality index; and (3) describe the anti-corruption index of BPS Trenggalek, Indonesia. The approach chosen is quantitative with the type of survey research. The primary data collection technique was mainly based on a questionnaire distributed to 40 respondents, namely BPS service users in 5 (five) categories: the private sector, the banking industry, academics, offices, or agencies in Trenggalek Regency and universities. The results showed that the quality of BPS services was good and the data quality index where the respondents were satisfied with the data presented by BPS. Meanwhile, testing the anti-corruption index shows that BPS Trenggalek is very anti-corruption in providing services to consumers. The findings of this study suggested that to improve service quality, it is necessary to pay attention to several aspects, including published service requirements, easy requirements to be fulfilled, published procedure information, clear service process flow, published service times, and costs/tariffs are communicated. This study suggests updating data, data relevance, data accessibility, and data completeness to improve data quality. Furthermore, to maintain the very anti-corruption predicate, this study suggests maintaining service by upholding the prevailing ethics and norms.

• Industrial Engineering and Management Systems
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• v.14 no.4
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• pp.347-371
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• 2015

A hybrid procedure based on multi-Criteria Satisfaction Analysis (MUSA) and a Network Data Envelopment Analysis (NDEA) is proposed to evaluate the relative efficiency of customer services in bank branches. First, a three-stage process including sub-processes such as customer expectations, customer satisfaction, and customer loyalty, is defined to model the banking customer services. Then, fulfillment of customer expectations, customer loyalty level, and the customer satisfaction degree are measured and quantified through a multi-dimensional questionnaire based on customers' perceptions analysis and MUSA method, respectively. The customer services scores and the other criteria such as mean of employee evaluation score, operation costs, assets, deposits, loans, number of accounts are considered in network three-stage DEA model. The proposed NDEA model is formed based on multipliers perspective, output-oriented, and constant return to scale assumptions. The proposed NDEA model quantifies and assesses the total efficiency of main process and assigns the efficiency to customer expectations, customer satisfactions, and customer loyalties sub-processes in bank branches. The whole procedure is applied on 30 bank branches in IRAN. The proposed approach can be used in other organizations such as airports, airline agencies, urban transportation systems, railway organizations, chain stores, chain restaurants, public libraries, and entertainment centers.

• The Journal of Asian Finance, Economics and Business
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• v.6 no.4
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• pp.9-17
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• 2019

The purpose of this research is to review historical development of Islamic finance in individual East Asian economies, including China, Japan, South Korea and Hong Kong, and examine the success factors of the Hong Kong Sukuk issuances in 2014-2017. The research is a qualitative study applying case study method. It is found that the East Asian economies do play efforts to develop their Islamic capital markets although they have very limited size of Muslim population. Their progress on this development generally remains to be slow. The Hong Kong Sukuk is a breakthrough, carrying a total issuance value of US$3 billion. The Sukuk issuances, treated as a kind of asset-backed securities with restrictions on financing purposes, are distributed to international investors by investment banks from Hong Kong, Middle East and Malaysia. Success factors of these issuances include involvement of an issuer with high credit quality, recognition by central bank for using the Sukuk in its discount facility for commercial banks, centralized clearing services for the Sukuk and global banking network for underwriting the Sukuk. The lessons from the Hong Kong Sukuk are good references for other economies to develop their regional Islamic capital markets and to integrate the markets into the global capital market.

• The Journal of Asian Finance, Economics and Business
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• v.4 no.2
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• pp.75-80
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• 2017

Hand phones are standard paraphernalia among university students. Factors that motivate them to own the gadget would be of interest to both the students as well as marketers. Hand phone usage is an unexamined field in academic literature, this exploratory study attempts to investigate student purchasing motives in cellular phone markets. It also intends to know the student's satisfaction with the different services and its future impact on socio economic changes. In this study, undergraduates (n=336) were requested to specify their purchase criteria of hand phone. The instrument used in the study to collect feedback from the respondents contains a combination of open-ended and scaled questions, and some background demographics. The study employed content analysis, Pearson's correlation, and t-tests as the primary tools to analyze the responses. Results show that brand was rated as the most important factor in student purchase decisions. Other factors, arranged in decreasing order of importance comprise price, product quality, features, durability, availability, promotion, and post purchase service. Brand and price correlated significantly. It is also observed that there is very little difference regarding preference between brand and price in purchasing a hand phone. Marketers may formulate suitable strategies out of the findings to promote hand phones to university undergraduates in Malaysia by emphasizing at brands and price.