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INTERNATIONAL ISLAMIC BANKS’ POPULARITY AMIDST THE ASEAN ECONOMIC COMMUNITY: INSIGHTS FROM INDONESIA AND MALAYSIA Bawana, Tate Agape; Mansor, Fadillah; Noordin, Kamaruzaman
Journal of Central Banking Law and Institutions Vol. 3 No. 3 (2024)
Publisher : Bank Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21098/jcli.v3i3.269

Abstract

The establishment of the ASEAN Economic Community (AEC) aimed to achieve regional integration among all ASEAN member states, with particular emphasis on financial integration. Islamic banking is in line with the broader goals of the AEC, as an alternative financial system, helping to build a more resilient and inclusive financial system in the region. Because of this resiliency and inclusiveness, Islamic banks have been encouraged to develop into international banks in the ASEAN region through increasing their assets and earnings. This paper aims to examine the position of International Islamic banks (IIb) in the AEC under its conventional banking services: OCBC Bank from Singapore, Maybank and CIMB Bank from Malaysia. Through the analysis of banking trends, this qualitative study compares the level of popularity of those banks in Indonesia and Malaysia, the two Muslim-majority countries in ASEAN, after the initial establishment of the AEC period in 2016 to 2024. The findings indicated that the most popular Islamic financial services in Malaysia are provided by Maybank, while the most well-known Islamic financial services under IIb in Indonesia are provided by CIMB Bank. This paper provides an overview of the globalisation of IIb in ASEAN and fills a research gap on the development of IIb, particularly within the AEC.
THE ROLE OF VIRTUAL ULAMA EXPOSURE IN ISLAMIC BANKING INTENTIONS AMONG INDONESIAN MUSLIM YOUTH sumaiya, Naili; Mansor, Fadillah; Mandalia, Siska; Haridhi, Hafiz Mubarraq
Assets: Jurnal Ekonomi, Manajemen, dan Akuntansi Vol 16 No 1 (2026): Assets : Jurnal Ekonomi, Manajemen dan Akuntansi
Publisher : Universitas Islam Negeri Alauddin Makassar

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24252/assets.v16i1.67260

Abstract

Purpose - This study investigates the determinants of Islamic banking intention among Indonesian Muslim youth by examining the effects of wasatiyya values, Islamic financial literacy, and exposure to virtual ulama. Methods - A quantitative cross-sectional survey was conducted using an online questionnaire. Of the 309 responses collected, 103 valid responses were retained after systematic screening and data-cleaning procedures. Multiple linear regression was employed to examine the relationships between the independent variables and Islamic banking intention. Findings - The findings indicate that exposure to virtual ulama has a significant positive influence on Islamic banking intention, whereas wasatiyya values and Islamic financial literacy do not exhibit significant direct effects. These results suggest that digitally mediated religious authority plays a more influential role than ethical orientation and financial knowledge in shaping Islamic banking intention among Muslim youth. Research Implications - The study implies that policymakers, Islamic financial institutions, and educators should strengthen collaboration with credible digital religious influencers to enhance Islamic financial awareness and promote Islamic banking adoption. Originality - The originality of this study lies in integrating virtual ulama exposure with Islamic financial literacy and wasatiyya values to explain Islamic banking intention within the context of Indonesian Muslim youth.