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21 – 30 of over 10000
Article
Publication date: 1 August 2021

Roy Poan, Valencya Engla Merizka and Farida Komalasari

The purpose of this study is to examine the role of attitude, religiosity, awareness and subjective norm toward trust which influences purchase intention regarding Islamic

1366

Abstract

Purpose

The purpose of this study is to examine the role of attitude, religiosity, awareness and subjective norm toward trust which influences purchase intention regarding Islamic insurance in Indonesia.

Design/methodology/approach

This research uses quantitative methods. Online questionnaires are distributed and collected for people who already have an insurance policy, have the knowledge and are interested in buying Islamic insurance in Indonesia. A total of 322 valid responses were collected using non probability purposive sampling and snowball sampling method. To achieve the purpose of this study, an analysis using SEM or structural equation model for hypothesis testing was performed.

Findings

The results show that trust significantly affected purchase intention regarding Islamic insurance. Other than that, trust is significantly influenced by awareness, religiosity and subjective norm. Moreover, the attitude toward trust found that not significantly related.

Originality/value

The originality of this study is the first research integrating attitude, religiosity, awareness and subjective norm, mediating by trust toward a purchase intention of Islamic insurance in Indonesia.

Article
Publication date: 29 August 2008

Mohamad Akram Laldin

The purpose of this paper is to elaborate and elucidate the experience of Malaysia in developing the Islamic financial system by explaining the different developments and methods…

13601

Abstract

Purpose

The purpose of this paper is to elaborate and elucidate the experience of Malaysia in developing the Islamic financial system by explaining the different developments and methods that has been deployed since its inception in 1963 until now and how best these experience can be used in developing Islamic financial industry.

Design/methodology/approach

The objectives are achieved by analyzing the different materials gathered through library research. The sources of the materials includes books, statistics, reports, presentations and conference papers. The scope of the study is limited to the Malaysian financial industry development.

Findings

The paper found that Malaysia has a very encouraging history of Islamic banking and has big potential to succeed in this area. However, some areas need to be improved, as suggested in the paper. It also found that the Malaysian model in developing Islamic financial industry can be taken as a benchmark in the development of such industry in other countries.

Originality/value

The originality of the paper lies in the in‐depth analysis of the different steps of development that Malaysia has gone through in the development of Islamic financial market, including banking, capital market and Takaful.

Details

Humanomics, vol. 24 no. 3
Type: Research Article
ISSN: 0828-8666

Keywords

Article
Publication date: 3 June 2014

Hanudin Amin, Abdul-Rahim Abdul-Rahman and Dzuljastri Abdul Razak

The purpose of this study is to propose a theory of Islamic consumer behaviour to explain the factors that influence the Islamic mortgage industry. Although previous works have…

7074

Abstract

Purpose

The purpose of this study is to propose a theory of Islamic consumer behaviour to explain the factors that influence the Islamic mortgage industry. Although previous works have shown that conventional marketing theories were, to a certain extent, able to predict factors influencing halal marketing and Islamic mortgage, these theories fail to capture or accommodate the Islamic perspectives of consumer behaviour. Conventional marketing theories have also been found to be inadequate to explain the Islamic mortgage preference among consumers.

Design/methodology/approach

Drawing upon the Maqasid al-Shariah, this study develops an Maqasid al-Shariah index (MSI) and religious satisfaction (RS) for Islamic mortgage industry in Malaysia. These indexes are developed as the basis of the theory development in this setting. The model developed is later examined using survey data.

Findings

This study reveals that education and RS are instrumental in determining the Islamic home financing preference. In contrast, justice and welfare are insignificantly related to the Islamic home financing preference. Religious satisfaction, to a certain extent, plays role not only as a mediator but also as a moderator. We find that RS has a full mediation effect on the relationship between welfare and willingness to consider applying Islamic mortgage. We discover justice is moderated by RS. Education and welfare however are not moderated.

Originality/value

This study contributes to the development of an empirical Islamic framework in predicting consumers’ behaviour in an Islamic mortgage market using a Maqasid approach. This study is also pioneering in introducing two indexes, notably MSI and RS, and applying these indexes to Islamic home financing context.

Details

Journal of Islamic Marketing, vol. 5 no. 2
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 28 April 2023

Syed Alamdar Ali Shah, Bayu Arie Fianto, Asad Ejaz Sheikh, Raditya Sukmana, Umar Nawaz Kayani and Abdul Rahim Bin Ridzuan

The purpose of this study aims to examine the effect of fintech on pre- and post-financing credit risks faced by the Islamic banks.

Abstract

Purpose

The purpose of this study aims to examine the effect of fintech on pre- and post-financing credit risks faced by the Islamic banks.

Design/methodology/approach

This research uses primary data for fintech awareness and adoption and secondary data of various financial and economic variables from 2009 to 2021. It uses baseline regression to identify moderation of fintech controlling gross domestic products, size, return on assets and leverage. The findings are confirmed using robustness against key variable bias. It also uses a dynamic panel two-stage generalized method of moments for endogeneity.

Findings

The study finds that the fintech awareness and adoption are not the same across all Islamic countries. The Asia Pacific region is far ahead of the other two regions where Indonesia is ahead in terms of fintech awareness and adoption, and Malaysia is ahead in terms of reaping its benefits in credit risk management. Fintech affects prefinancing credit risk significantly more than postfinancing credit risk. Also, the study finds that Islamic banks suffer from the problem of “Adverse selection under Shariah compliance.”

Practical implications

This research invites regulators to introduce fintech in Islamic banks on war footing. Similar studies can be conducted on the role of other risks such as operational and market risks. Fintech will also help in improving the risk profile and stability of Islamic banks against systemic risks and financial crises.

Originality/value

This research has variety of originalities. First, it is the pioneering study that addresses the effect of fintech pre- and post-financing credit risks in Islamic banks. Second, it identifies “Adverse selection under Shariah compliance” for Islamic banks. Third, it helps identify how fintech can be useful in reducing credit risk that will help in reducing capital charge for regulatory capital.

Details

Journal of Science and Technology Policy Management, vol. 14 no. 6
Type: Research Article
ISSN: 2053-4620

Keywords

Article
Publication date: 12 February 2021

Fatima Khaleel, Pervez Zamurrad Janjua and Mumtaz Ahmed

The purpose of this paper is threefold. First, it assesses communicated (information disclosed in annual reports and websites) ethical values of Islamic banks (IBs) by using an…

Abstract

Purpose

The purpose of this paper is threefold. First, it assesses communicated (information disclosed in annual reports and websites) ethical values of Islamic banks (IBs) by using an index based on Islamic precept. Second, this research paper analyzes the perception of employees working in IBs of Pakistan regarding previously mentioned dimensions constructed in the form of index. Third, it explores the difference (if any) between communicated and perceived ethical values of IBs in Pakistan.

Design/methodology/approach

This study incorporated two research methods, namely, content analysis (qualitative method) and descriptive analysis (quantitative method) to assess communicated and perceived ethical values. A checklist was designed that includes total six dimensions with 106 items or constructs. For perceived ethics, survey method is used to explore how far in practice IBs are operating in line with Islamic finance ethics in Pakistan by distributing questionnaires among employees.

Findings

This research study revealed overall satisfactory communicated and perceived ethical values in IBs of Pakistan. It is generally concluded that Meezan Bank is doing well in all dimensions as compare to other three banks in Pakistan. Some banks such as Dubai Islamic Bank and Albaraka Islamic bank lack proper format of annual reports. It recommended proper training and development of employees particularly about Islamic banking products and procedure. Moreover, it is recommended to take initiative of attracting female segment of the society and environment protection related campaigns.

Research limitations/implications

Because of data and time constraints, an extended beneficiary analysis could not be materialized in this study. Therefore, for future research, it is recommended to expand the stakeholders’ analysis beyond employees of IBs.

Practical implications

This study may be helpful for policymakers and other stakeholders to improve the image and for further growth of IBs in Pakistan.

Social implications

This study is the part of corporate social responsibility, so it will add value to social norms of banking sector and provide different dimensions and constructs based on Islamic ethical and moral system. It highlights banker’s responsibilities toward society.

Originality/value

This paper supports the phenomena of Islamic banking and finance in emerging markets and shows its potential growth for the economy.

Details

Journal of Islamic Marketing, vol. 13 no. 6
Type: Research Article
ISSN: 1759-0833

Keywords

Article
Publication date: 18 July 2019

Abd Hakim Abd Razak

The purpose of this study is to examine the legal paradigm of multiple Sharia' board directorship practice from the Sharia' law concept of Maslahah Al-Mursalah (public interest).

Abstract

Purpose

The purpose of this study is to examine the legal paradigm of multiple Sharia' board directorship practice from the Sharia' law concept of Maslahah Al-Mursalah (public interest).

Design/methodology/approach

It uses a doctrinal research method that relies on the commonly referred sources of Quran and Sunnah, with a specific focus on Maslahah Al-Mursalah and, where applicable, commentaries by contemporary scholars, academics and practitioners as well as translations of classical book of Fiqh. This study scrutinises the polarity of views concerning the distinct Masyaqqah (necessity) surrounding the practice in discussion: the Masyaqqah that encourages and one that discourages the application of the practice.

Findings

This study is keen to suggest the industry to adopt a cautious approach and consider exploring a corporate governance framework that appraises the theoretical and practical Sharia' issues concerning its application in cognisance of its adversarial influence towards the sustainability of Islamic banking industry.

Originality/value

Since Murat Unal’s study of multiple Sharia' board directorships in 2009 and 2011, empirical works that scrutinise the practice from the Sharia' law perspective have remained limited or almost non-existent. It is aspired that this study may assist fellow readers and future researchers alike in evaluating and appreciating the divergent views surrounding the application of this practice in Islamic banking.

Article
Publication date: 27 June 2023

Hasan Kazak

The purpose of this study is to provide quantitative information about the development of Islamic financial management literature. For this purpose, it is aimed to draw attention…

Abstract

Purpose

The purpose of this study is to provide quantitative information about the development of Islamic financial management literature. For this purpose, it is aimed to draw attention to the development of this field by revealing the literature gap in the field of Islamic financial management.

Design/methodology/approach

In this study, the document analysis method is used and the Web of Science (WOS) site is used to obtain the desired data. The time range of the study covers the years 1980–2023/January. The results obtained from the scans were analyzed by the bibliometric analysis method. The data obtained within the scope of the study are classified and analyzed using the VOSviewer program, which is one of the many software developed for scientific mapping analysis. The obtained data are presented in a certain order with the visual mapping method.

Findings

In the analyses made, bibliometric analysis based on document review and including the subject of “Islamic financial management” in the WOS database between the relevant years has not been used in any study, which points to an important gap in the literature. However, 3,022 studies on “Financial management” and 1,830 studies on “Islamic finance” have been identified. Although there is no data on “Financial Management”, the subjects of “Islamic finance” and “Financial management” related to the subject have been evaluated in terms of countries, the most publishing organizations, authors, publications and word–word groups, using the bibliometric analysis method, as well as making numerical and visual evaluations. These studies show that an infrastructure to include the subject of “Islamic financial management” has not been formed in the literature.

Practical implications

This study points to an important gap in the literature. The subjects of “Islamic finance” and “Financial management” have been sufficiently covered in the literature separately. By combining this knowledge with new studies there appears an environment where original studies on the subject of “Islamic financial management” can be made and this study is aimed to shed light on this virgin area.

Originality/value

In the literature bibliometric analysis based on document review including the subject of “Islamic financial management” has not been used in any study. To the best of the author’s knowledge this study is the first in the literature to address the related issue and with it an important gap in the literature has been identified and an important case that will be a source for future studies has been revealed.

Details

Journal of Islamic Accounting and Business Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0817

Keywords

Article
Publication date: 7 December 2021

Ufuk Can and Mehmet Emin Bocuoglu

There is not a comprehensive study which covers the evolution of the Turkish Islamic liquidity management landscape so far. The purpose of this study is to show how Turkish PBs…

Abstract

Purpose

There is not a comprehensive study which covers the evolution of the Turkish Islamic liquidity management landscape so far. The purpose of this study is to show how Turkish PBs have been gradually furnished with the needed liquidity management instruments by the Turkish Treasury, Central Bank of the Republic of Turkey and other related regulatory bodies and to analyze the repercussions of the evolution of Islamic liquidity management on balance sheets of participation banks (PBs) over time. This study also aims to come up with some humble policy recommendations that can improve Islamic liquidity management set up going forward.

Design/methodology/approach

The study acknowledges that at least two important elements of liquidity management should be in place on the way of improving the Islamic liquidity management environment. The first one is asset side liquidity or having an adequate amount of high-quality liquid assets. The second one is liability side liquidity, meaning that having access to funding liquidity, especially to central bank liquidity. Historical development of liquidity-related asset-side and liability-side balance sheet items between 2010 and 2020 are analyzed and visualized to demonstrate the progress in the Islamic liquidity management landscape in Turkey.

Findings

From 2010 to 2020, Turkish financial authorities made a great effort to get PBs to have more proper liquidity management tools. Turkish authorities have leveled the playing field for PBs via enriching liquidity management tools. Government sukuk issuances has filled the liquid asset gap, improved the liquidity profile of PBs and lessened overall liquidity risk while introduced central bank liquidity facilitates have reduced funding liquidity risk. Islamic liquidity management setup is much more advanced and participation banking system is more resilient than the past, but there are still some missing steps that can further ameliorate the Islamic liquidity management ecosystem in Turkey.

Research limitations/implications

This study is a visualized ratio analysis of PB’s improving liquidity profile in the past 10 years and fills an important gap in terms of displaying the overall Islamic liquidity management landscape in Turkey. Further studies and analysis can be built on this paper on Islamic liquidity management, banking and finance in the future. This paper can be a useful basement for researchers who intend to study on potential impacts of improving the liquidity of PBs on monetary transmission, banking profitability and overall banking system systemic risks.

Practical implications

Three different and interconnected areas should be further improved. These are enriching the diversity of government securities, providing central bank liquidity facilities under various available Islamic contracts and establishing an organized Islamic money market which will facilitate fund flows among various Islamic Financial Institutions (IFIs) and conventional financial institutions. Policymakers should act together, handle arising issues in a holistic manner, design and operationalize these incomplete parts of the puzzle to further optimize the playing field for the IFIs. Thus, there will be a more inclusive and competitive finance industry in which all risks are better managed and resources are more efficiently allocated.

Originality/value

Although various other studies are available on the Turkish Islamic banking industry, there is not such a specific study on Islamic liquidity management of Turkish PBs which makes this study a preliminary and different one. Apart from shedding light on the Turkish journey that has built a sound Islamic liquidity management infrastructure in the past 10 year, this study also shows an exemplary country experience in developing a more inclusive and robust financial ecosystem. This paper also contributes to financial development and inclusion literature as a policy paper.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 15 no. 4
Type: Research Article
ISSN: 1753-8394

Keywords

Open Access
Article
Publication date: 11 October 2018

Dalal Aassouli, Muhammed-Shahid Ebrahim and Rohaida Basiruddin

This paper aims to propose a liquidity management solution for Islamic financial institutions (IFIs) that concurs with sustainable development and financial stability.

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Abstract

Purpose

This paper aims to propose a liquidity management solution for Islamic financial institutions (IFIs) that concurs with sustainable development and financial stability.

Design/methodology/approach

The study is a qualitative research. It uses the exploratory research methodology, specifically the content analysis approach, to gather primary data and identify and interpret relevant secondary data and Sharīʿah concepts. The purpose is to develop a liquidity management solution for IFIs. The proposal is based on the Unleveraged Green Investment Trust (UGIT) model, which is consistent with Basel III regulatory requirements. In developing the UGIT model, the exploratory research was complemented by a case study to examine the UGIT solution for the particular case of renewable energy.

Findings

The model demonstrates how financial innovation can meet both financial stability and sustainable development objectives, thereby achieving the spirit of Islamic finance. The structure further highlights the importance of regulatory and fiscal frameworks to enhance liquidity management and investor appeal for green financial instruments.

Originality/value

This study suggests a structure of UGIT to enable IFIs to meet their liquidity management needs while promoting sustainable development.

Details

ISRA International Journal of Islamic Finance, vol. 10 no. 2
Type: Research Article
ISSN: 0128-1976

Keywords

Article
Publication date: 1 October 2018

Fayaz Ahmad Lone and Ulfat Rashid Bhat

The purpose of this paper is to find out the importance of the tag “Islamic” in the title of banks. This will help to determine the future strategy of Islamic banks, while…

Abstract

Purpose

The purpose of this paper is to find out the importance of the tag “Islamic” in the title of banks. This will help to determine the future strategy of Islamic banks, while expanding to the countries where Islamic banking is seen as a religious banking and not an as an alternative approach to the conventional banking.

Design/methodology/approach

Adopting convenience sampling, a total of 596 customers of both Islamic and conventional banks were surveyed from four regions of Saudi Arabia (Makkah, Madinah, Riyadh and Dammam) using a self-structured questionnaire on a five-point Likert scale.

Findings

The results concede that Islamic banks without the tag “Islamic” and conventional banks have same customer satisfaction. There are some factors other than the tag “Islamic” which are driving customers towards Islamic banking. Those factors include physical aspects of the bank, level of satisfaction with the services, dealing and attendance by the staff and safety and security of the bank. Besides, the application of fundamental principles of Islamic banking works as a key motivation for customer satisfaction with Islamic banking.

Practical implications

Applying the tag “Islamic” is not as important as implementing the principles of Islamic banking. Islamic banks can survive and compete well even without using the “Islamic” tag if they implement the prime principles of Islamic banking and work on improving the factors highlighted by this study. This study can prove to be helpful in the expansion of Islamic banking in the countries where religious banking is not generally preferred by customers.

Originality/value

This is the first study to find out the customer satisfaction in a dual banking system (comprising of conventional banks and Islamic banks that do not use the tag “Islamic”), thereby filling the existing gap in the Islamic banking literature.

21 – 30 of over 10000