Islamic banking – Jurnal Pengurusan

Willingness to Be a Partner in Musharakah Mutanaqisah Home Financing: Empirical Investigation of Psychological Factors

Nazira Adnan — Wed, 12 Oct 2022 05:32:54 +0000

This study is aimed at explaining factors influencing the intention to be a partner amongst bank customers in musharakah mutanaqisah home financing. Drawing upon the theory of planned behavior (TPB), this study assesses the model in order to examine the effects of three explanatory factors namely attitude, subjective norm and perceived behavioral control on the intention to be a partner in the context of Islamic home financing. This study modifies the TPB to reflect musharakah mutanaqisah home financing. The model of the study is assessed using survey data from 168 respondents among bank customers. The findings suggest that attitude, subjective norm and perceived behavioral control are significantly influencing the intention to be a partner. The relationship between attitude and subjective norm is also significant. The findings demonstrate the applicability of the TPB in the musharakah mutanaqisah home financing context. The findings are also useful to bank managers in effectively managing Islamic home financing facilities.

Occupational Health and Safety Advisory Services (OHSAS) 18001 Management System Adoption: Assessing the Determinants

Faris A181711 — Tue, 11 Oct 2022 04:27:44 +0000

This study employed structural equation modeling (SEM) and partial least square (PLS) tools to examine the determinants (namely management commitment, work involvement, incentive and recognition, and supportive environment) involved in the adoption of OHSAS 18001 management system by industries in Malaysia. Survey data was drawn from a sample of 128 OHSAS 18001 certified companies from various industries. Statistical results confirmed that only management commitment and supportive environment positively influence OHSAS 18001 management system adoption, while work involvement, and incentive and recognition are not significantly influencing OHSAS 18001 adoption. The findings are useful for practitioners that are considering the adoption of OHSAS 18001 management system in their companies. This paper concludes with discussion, implications, limitations and suggestion for future study.

Islamic Social Bank: An Adaptation of Islamic Banking?

amrularshad — Sun, 09 Oct 2022 13:56:24 +0000

Islamic banking is an experiment of the viability of Islamic economy with the aim to fulfil the socioeconomic justice that balances the material and social aspects of finance. However, the current practice of Islamic banking has yet to address the moral issues in promoting a balance between social and economic justice. Consequently, some scholars suggested that it is timely to learn from the experience of social banking model; that is an articulation of a sustainable and CSR oriented banking model in fulfilling the developmental needs of Muslim societies. Therefore, the purpose of this study is to introduce the idea of Islamic social banking based on the aspiration of Islamic moral economy. This paper will also discuss the social and sustainable features of social banking from an Islamic view which importantly will lead to social and economic development. The implication of the study is to fulfil the developmental needs of the Muslims in alleviating poverty and uplifting the social status by introducing a social bank which is Shari’ah compliance.

A Model of Demand for Islamic Banks’ Debt-based Financing Instruments

SITI HASLINA TON ZAINAL ABIDIN — Sat, 08 Oct 2022 19:59:45 +0000

This paper presents a theoretical analysis of the demand for debt-based financing instruments of the Islamic banks. Debt-based financing, such as through bai bithaman ajil and al-murabahah, is by far the most prominent of the Islamic bank financing system and yet it has been largely ignored in Islamic economics literature. Most studies instead have been focusing on equity-based financing of al-mudarabah and al-musyarakah. Islamic banks offer debt-based financing through various instruments derived under the principle of exchange or more specifically, the deferred contract of exchange. In this paper we set an analytical framework that is based on an infinitely lived representative agent model to analyze the demand for goods to be purchased by deferred payments. The resulting demand will then be used to derive the demand for Islamic debt. We also investigate theoretically, factors that may have an impact on the demand for Islamic debt.

CSR and Sustainability of Islamic Banking: The Bankers View

Nur_161 — Sat, 08 Oct 2022 18:39:03 +0000

Islamic banking (IB) practices have spread throughout the World, not only in Muslim countries but also in the West. To sustain in the very competitive market, Islamic banking must be outstanding and resilience from other conventional banks. Hence sustainable banking theme is deemed to be relevant to its operation by incorporating corporate social responsibility (CSR) and sustainable development concepts. Little that we know about CSR and sustainable development practices of Islamic banking from the managerial views. This paper attempts to explore the social responsibility and sustainability dimension of Islamic banking in Malaysia from the management insights. This is an inductive research employing semi- structured interview survey of 11 important Islamic bankers holding various positions. Thematic analysis approach was used to analyse data. The study reveals that Islamic banks are encouraged to perform various CSR activities however activities leading to significant socioeconomic impact are still lacking. Social banking may provide the answer.

A Revisit to the Practice of Late Payment Charges by Islamic Banks in Malaysia

syazwinaramjan — Sat, 08 Oct 2022 17:03:05 +0000

Islamic banking in Malaysia have been experiencing late payment and default issues because customers are not allowed to be charged with interest (riba) as opposed to the practices in the conventional banking. To mitigate these issues, the Shariah Advisory Council of Bank Negara Malaysia has enforced ta’widh and gharamah as regulatory alternatives. Practically, ta’widh and gharamah were imposed on the defaulting customers who fail to meet their obligation to pay their financing based on several conditions. Given the significance of its imposition, this paper aims to analyse the current practice in Islamic banks and examine the views of contemporary Muslim scholars on ta’widh and gharamah and its suitability as alternatives for avoidance of riba.

Islamic Banking Implementation: Supportive Role of Business Service

syafiqahazieati — Sat, 08 Oct 2022 07:11:37 +0000

Islamic banking has advanced in the past four decades. It has become a worldwide brand, cultured and structured industry. Nevertheless, Malaysia has witnessed low penetration of Islamic banking. Researchers documented several reasons allied with low market penetration of Islamic banking. Although Malaysian industrial sector is dominated by Small and Medium Enterprises, there is less information about small business owner’s intention to adopt Islamic banking. Following the Theory of Reasoned Action, this research includes attitude, social influence and business service factors effect on intention to adopt Islamic banking. The research followed positivist research philosophy and quantitative descriptive cross-sectional study design to explicate the relationship between small business owner’s attitude, social influence and business service on intention to adopt Islamic banking. 390 sample from Klang Valley region of Selangor state of Malaysia was considered for the study. Data was collected using survey method through the distribution of structured questionnaires. PLS-SEM was used to test the predictive relevance. The results indicate a strong positive relationship between attitude, social influence and business service on intention to adopt Islamic banking.

Impact of Structural Changes on Bank Competition in Dual Banking Industry

Nazira Adnan — Sat, 08 Oct 2022 07:09:31 +0000

The banking industry in Malaysia has undergone a change in its market structure, especially in terms of competition due to several factors such as the implementation of the merger program, restructuring of the Islamic banking operations, liberalization and technological advancement. Therefore, this study is conducted to measure the changes in the degree of competition in the Malaysian dual banking due to structural changes occurring in the industry. The Panzar-Rosse (PR) method has been used to measure the degree of competition in the Malaysian dual banking market for the period 1997-2016. Present study uses static panel data estimation to estimate the developed models. The value of H-statistics indicates that Islamic and conventional banks operate in monopolistic competition market structure. The findings show that structural changes have increased the level of competition in the Malaysian banking industry. The results of the study show that policy changes made by Bank Negara Malaysia have improved the level of competition in the Islamic and conventional banking markets. Knowledge of competitive issues is crucial so that policy makers may formulate new policies for the banking industry that suit the current market structure.