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Journal : Review on Islamic Accounting

Do Indonesia Islamic Banks Perform Better Than Malaysia? A Malmquist Index Approach Uula, Mimma Maripatul; Rusydiana, Aam Slamet; Ali, Mohammad Mahbubi
Review on Islamic Accounting Vol. 3 No. 1 (2023): Review on Islamic Accounting
Publisher : SMART Insight

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58968/ria.v3i1.297

Abstract

This study aims to measure the productivity of Islamic banks in Indonesia and Malaysia using the Malmquist Productivity Index (MPI) method with the research period 2010-2019. The research objects used are 23 Islamic banks in Indonesia and Malaysia. The data of this study comes from the annual financial statements of each bank from the period 2010-2019. The input variables in this study are employee costs, administrative costs and third-party funds. And for the output variable is financing and operating income. The results of this study explain that during the period 2010-2019, the productivity level of Islamic banks in Indonesia and Malaysia has a fluctuating trend from year to year. Based on the average TFPCH score, it is concluded that the productivity of Islamic banks shows no increase in productivity or constant and technological change has not contributed optimally to the increase in productivity of Islamic banks in Indonesia and Malaysia. Furthermore, analyzing individually on Islamic Banks in Indonesia and Malaysia, it is found that there are 8 Islamic Banks with increased productivity, one Islamic bank in Malaysia and seven Islamic banks in Indonesia. The results also highlighted that the productivity level of Islamic banks in Indonesia is relatively better than Islamic banks in Malaysia. Then, the Malmquist Index quadrant analysis found that Islamic Banks in Indonesia and Malaysia dominate in quadrant 3 with a total of 12 Islamic Banks, followed by quadrant 4 with a total of 7 Islamic banks, and quadrant 1 with a total of 4 Islamic banks.
Indonesia Islamic Bank Development: An Interpretive Structural Modeling (ISM) Rusydiana, Aam Slamet; Laila, Nisful; Ali, Mohammad Mahbubi
Review on Islamic Accounting Vol. 3 No. 2 (2023): Review on Islamic Accounting
Publisher : SMART Insight

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.58968/ria.v3i2.381

Abstract

This research is aim to identify the priority factors that being barrier to develop Islamic bank in Indonesia using Interpretive Structural Modeling (ISM) method. Here is also offered some solutions for the problems identified. ISM is an advanced planning methodology used to identify, analyze and summarize various relationship among factors that define a problem, model or issue. The development of Islamic bank in Indonesia with ISM framework is divided into three criteria: (1) Strategy or foundation required within the framework of developing Islamic banks, and (2) Stakeholders or actors involved in the development of Islamic banks in Indonesia. Result show that the core strategies or foundations that’s needed in framework of Islamic banking development in Indonesia are: The improvement of public literation and preference, Strengthening and align ruling and supervision, Strengthening policy synergy between the stakeholders and Improvement quality and quantity of human resources, information system & technology and other infrastructures.