• The Journal of Asian Finance, Economics and Business
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• v.9 no.4
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• pp.287-298
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• 2022

Indonesia is an agrarian country with the significant development of Shariah banking. This study aimed to estimate the effect of Third Party Funds (TPF), Non-Performing Financing (NPF), Exchange Rates (ER), and Bank Indonesia Shariah Certificates (SBIS) on the Sharia Agriculture Sector Financing in Indonesia during 2014-2020. This study used the Ordinary Least Square (OLS) technique to analyze the data. The coefficient of determination test showed that 99.19% of Sharia financing in the agricultural sector was influenced by TPF, NPF, Exchange Rate, and SBIS variables. The estimation results showed that the variables of TPF and ER significantly affected Sharia Financing for Agricultural Sector (PP). Meanwhile, the NPF and SBIS variables had no significant effect on PP. This research showed the resilience and accuracy of Islamic banking in selecting financing and can support the development of other Islamic financial instruments such as SBIS. Simultaneous test results demonstrated the existence of the estimating model. Because of the character of the Indonesian nation as an agricultural country, this study advised Sharia banking to prioritize the usage of third-party funds from the public for the agricultural industry. Sharia banking also needed to produce Islamic finance products that fit the agriculture business sector's needs.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.1315-1325
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• 2021

This study aimed to design a strategy in encouraging the loyalty level of priority customers of Sharia banks in Indonesia. The strategy was outlined in a series of alternative applicative programs priority. The use of ANP intended to simplify the existing problems so that the offered solution was easier to apply. Each item was scored on a 5-point Likert scale. The expected outcome was to give priority scales to the offered solutions. The findings of this study are service quality, brand image, bank image which could build customer loyalty in Sharia banks. Priority customer gathering could strengthen the bonds between customers and also between customers and their banks. The excellence of Sharia banks in terms of service quality, brand image, and bank image, when combined with priority customer gathering activities, would become a powerful formula in increasing priority customer loyalty to banks that lead to increased revenue from banks. Originality of this research was the formulation process of a new approach in search of ways to increase the customer loyalty, as well as giving concrete proposals for the banking world in designing customer loyalty improvement programs. This paper shows the updated strategy in Customer Loyalty, Bank image, Brand image, Banking service quality.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.313-322
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• 2021

This study aims to analyze the influence of religiosity, spiritual leadership, and work-life balance and its impact on innovative behavior through the mediating effect of employee engagement on the state-owned sharia bank of Central Java Province. The total sample of this study is 226 respondents taken from state-owned sharia bank in 6 Regencies/Cities in the former Karisedenan of Central Java. Samples are taken using a cross-sectional approach. The sampling technique is using the division of regions based on clusters (cities) and is carried out using a purposive sampling method. The results indicate that the indirect influence of all independent variables on innovative behavior through the mediating effect of employee engagement is found to be significant. This study views employee engagement from the perspective of religiosity-based social exchange theory so that religious values in the interaction relationship can be fairly applied and respected by the employees of the state-owned sharia bank. Managers can socialize the importance of spirit behavior to employees so that it can be their everyday attitude and becomes their guide for work. Leaders can become role models in straightening intentions while working as well as conditioning the conscience to always think positively at work by strengthening work engagement in sharia banking institutions.

• Journal of Distribution Science
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• v.21 no.2
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• pp.65-76
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• 2023

Purpose: This study examines the opportunities and challenges of sharia-based regional development bank spin-offs in supporting economic growth and income distribution through a board of commissioner's approach. Research design, data, and methodology: The research design is qualitative research with the main data collection technique through in-depth interviews. Results: The results of the study show that Bank Nagari can support the performance of the West Sumatra government, especially in regional finance. The positive influence is shown in the benefit aspect of 31% and the opportunity of 28% which is the priority value. The challenges that must be faced are technology services, improving the quality of human resources, socialization, and application of local wisdom which is by the philosophical values of the people of West Sumatra Adat Basandi Syara' Syara' Basandi Kitabullah. Conclusions: It can be concluded that the local government of West Sumatra has an essential contribution to the conversion of Bank Nagari to RDB Syariah as a whole. The expected implication is that the local government and shareholders cooperate well in supporting the transformation to realize West Sumatra Mandani through the populist economy of the people of West Sumatra.

• Asian Journal of Business Environment
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• v.12 no.4
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• pp.25-34
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• 2022

Purpose This research develops the expanded Technology Acceptance Model (TAM) to investigate the relationship between perceived usefulness and perceived ease of use with satisfaction and loyalty by considering the role of sharia compliance, commitment, and trust. Research design, data and methodology: A data source is 300 respondents from a self-administered survey. The target population is Muslims who are customers of Islamic banks, with age at least 18 years, and used e-banking to make payment transactions. The analysis methods are MANOVA and Multiple Linear Regression. Results: The results suggest that intention to use and actual behavior variables are replaced with satisfaction and loyalty. Commitment is not recommended, while trust is an explanatory variable that can be used as an external variable. Conclusions: It is important to increase satisfaction and commitment also concentrate to various aspects of sharia compliance to increase customer's loyalty to use e-banking. The fulfillment of sharia compliance by Islamic banks will increase the Islamic bank customers loyalty.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.3
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• pp.41-51
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• 2020

A series of corporate failures and financial crises have raised attention to organizational governance issues, especially for financial institutions. In the banking system, corporate governance further plays a unique role because of the uniqueness of the banking organizations. Therefore, this study aims to examine the effect of corporate governance disclosure on bank performance by building a corporate governance disclosure index (CGDI) for 10 Islamic banks operating in Iran, Saudi Arabia and Malaysia. The data used in this study are secondary data taken from annual reports and sourced from the official websites of each banks include Iran Exchange, Stock Market Quotes and Financial News, and Bursa Malaysia. This study uses content analysis of the annual bank report within five years (2014-2018). The results show that Islamic banks comply with 72.4% of the attributes discussed in the CGDI. The most frequently reported and disclosed elements are board structure and audit committee. The regression results provide evidence that Islamic banks with a higher level of corporate governance disclosure reported high operating performance measured by ROA. In contrast to the expectation, the financial performance of ROE and Tobins'q are not significantly related to the disclosure of sharia bank governance.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.12
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• pp.1149-1158
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• 2020

NPF Islamic banking needs to be resolved because it affects banking performance in terms of income and the quality of its productive assets. This study aims to solve problems of non-performing financing and assess and analyze whether the implementation of the Islamic Humanity model can reduce the problem of financing at Bank Syariah Mandiri Indonesia. The study uses qualitative method with Miles and Huberman approach for analizing data through four steps which are; (a) data collection (b) data reduction (c) data display, and (d) conclusion drawing/verification. The results of the study found non performing financing can be reduced with using a new approach namely the Islamic Humanity Approach, which is an interaction between several aspects, namely (a) spiritual aspects, (b) economic aspects, (c) social aspects, and (d) justice aspects. The Islamic humanity model carried out in problem-solving activities at Bank Syariah Mandiri Indonesia includes a friendly approach, communication and deliberation in a family, respect for people, empathy, the concept of justice, and the concept of prayer. Islamic humanity approach shows success in reducing non-performing financing. The research concluded Islamic humanity as a new approach to reduce non-performing financing at Bank Syariah Mandiri Indonesia and it can be implemented to all Islamic banking in Indonesia.

• 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.8 no.4
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• pp.239-247
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• 2021

Conventional banks are often considered more efficient than Islamic banks because they have been operating for decades, but Islamic banks have shown rapid development recently. Therefore, this study mainly aims to compare the level of efficiency of conventional banks and Islamic banks and which ones have the best level of efficiency. This study employs panel data using Stochastic Frontier Analysis (SFA) as the data analysis technique. The data used is annual data from 13 conventional banks and 13 Islamic banks in Indonesia during the 2014-2019 period. The result shows no significant difference in the efficiency of conventional banks and Islamic banks. This result is presumably influenced by the small size of the bank and the total number of banks used in the study. The data used in the study is limited to the period from 2014 to 2019. The variables utilized are also limited to the availability of financial report data which is publicly published. This study provides additional empirical evidence regarding conventional banks' and Islamic banks' efficiency in Indonesian banking by using the latest data. While theoretically, Islamic banks are expected to be more efficient than conventional banks, this study did not find any strong support for the case in Indonesia during the observation period.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.329-337
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• 2021

This research aims to expose the Islamic perspective on the concept of justice on the Mudarabah contract's profit-sharing ratio. In certain verses in Al-Qur'an, Islamic values in Muamalah, the rules dictated by the Qur'an and its practices, and explanations rendered (more commonly known as Sunnah) by the Prophet Muhammad (pbuh) and Sahabah (the companions of the Prophet Muhammad), and Fiqh Axiom (rules) in Muamalah (Islamic jurisprudence), are used as the instruments of sharia to achieve the study objective. Islamic monetary establishments in Indonesia are still not in full consistency with the Shariah principles, significantly as far as satisfying equity and justice by Islamic banks in mudarabah contract (with clients). The ignominy is the nisbah (ratio) between the capital proprietor and the capital director. There are models or propositions to decide the benefit (profit)-sharing proportion. Nevertheless, none of them explains or specifies the possibility of equity/justice in the profit-sharing ratio. This research utilizes an explorative and subjective methodology that contributes to the philosophical premise of deciding the profit-sharing fairness. The elements of a just ratio for the Mudharabah contract are mutual willingness, the existence of negotiation, and the level of advantages and risks of the labor.