International Journal of Islamic Economics and Finance (IJIEF)
International Journal of Islamic Islamic Economics and Finance (IJIEF) is a journal which is bianually issued (January and July) and initiated by International Program for Islamic Economics and Finance (IPIEF). The publisher of this journal is Universitas Muhammadiyah Yogyakarta. The publication of this journal though tighly-peer reviewed process using Open Journal System (OJS). For the publication, IJIEF only accept research article and publish it in electronic (PDF) version. The electronic publication can be accessed openly on the website http://journal.umy.ac.id/index.php/ijief/index. IJIEF commit to embrace the best research article in islamic economics and finance fields from the whole world and publish it consistently.
Articles
192 Documents
<![CDATA[Modeling the Demand for Islamic Microfinance Services: An Application of PLS-SEM Approach ]]>
<![CDATA[Mohamed Asmy Bin Mohd Thas Thaker]]>;
<![CDATA[Salina Kassim]]>;
<![CDATA[Md Fouad Bin Amin]]>;
<![CDATA[Marhanum Che Mohd Salleh]]>;
<![CDATA[Nadhrah Othman]]>;
<![CDATA[Siti Nadhirah Kassim]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 5, No 1 (2022): IJIEF Vol 5 (1), January 2022 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.v5i1.11776
<![CDATA[The access to capital is very crucial for ensuring the financial sustainability of microfinance clients. It is also equally important to determine the demand for microfinance services among the clients. This study aims to identify the factors affecting the demand for Islamic microfinance (IsMF) services among the women micro-entrepreneurs in Malaysia. This study has collected a total of 250 samples from the field survey on women micro-entrepreneurs who are also the clients of Amanah Ikhtiar Malaysia (AIM). In addition, Partial Least Squares (PLS) method used to identify the potential factors (4As) i.e., affordability, accessibility, adequacy and awareness affecting the demand for IsMF. The results show that only “accessibility” has significant and positive relation with the demand for IsMF. Besides, the measurements items of accessibility such as distance of IsMF institution, collateral requirement, guarantor requirement, application procedure and process, repayment method, service efficiency, advise and consultation, and number of IsMF centers are the key factors affecting the demand for IsMF services in Malaysia. This paper provides some insights for the policy makers of Islamic microfinance and recommends that IsMF providers should take accessibility factor into greater consideration for the economic upliftment of women in microenterprises in Malaysia]]>
<![CDATA[Should Islamic Banking & Financial Institutions go with General Data Protection Regulation Compliance? ]]>
<![CDATA[Manda, Vijaya Kittu]]>;
<![CDATA[Eskhita, Radwan]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 2, No 1 (2019): IJIEF Vol 2 (1), July 2019 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.2117
<![CDATA[The new European Union (EU) data protection law - General Data Protection Regulation (GDPR)that is enforceable on all entities, within and outside the territory of European Union requires that follow entities dealing with private data of EU individuals should follow due procedures in regard to safe data handling and storage. This regulation is forcing all countries globally, including those in the Islamic countries to take special precautions. Islamic banks and financial institutions are key intermediaries fostering smooth foreign trade between Islamic and European countries. Lack of sufficiently strong data protection legislation in most of the Islamic countries is hampering conformity with GDPR. This leads to non-compliance and thereby paves way to heavy monetary penalties in the short-run and hurts business prospects with the European counties in the long-run, both of which are detrimental. This paper helps institutions in building frameworksby taking them through a series of compliance checks, build teamsto enforce standards, make knowledge repositories and to undertake necessary technical measures. Findings from this study can help Islamic companies in general and Islamic Banking Financial institutions in particular in meeting GDPR compliance.Finally, this paper makes some key recommendations to the Governments, Regulators, Financial Institutions, Organizations and Individuals so that they can become GDPR complaint.]]>
<![CDATA[Modeling Islamic Economics and Finance Research: A Bibliometric Analysis ]]>
<![CDATA[Rusydiana, Aam]]>;
<![CDATA[Sanrego, Yulizar]]>;
<![CDATA[Rahayu, Solihah]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 4, No 1 (2021): IJIEF Vol 4 (1), January 2021 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.v4i1.8966
<![CDATA[This study aims to determine the development map of mathematic model in islamic economics and finance research that is indexed by Scopus and other reputable journal with the keyword "Mathematic model in islamic economics and finance". The data analyzed were 100 selected publications. The development map of mathematic model in islamic economics and finance research analyzed using the VOSviewer application program to find out the bibliometric map. The results showed that the number of publications on the development of mathematic model in islamic economics and finance research indexed Scopus from 1983-2019 experienced a significant increase and the most were published in Journal of King Abdulaziz University: Islamic Economics. Network visualization showed that the map of the development of mathematic model in islamic economics and finance research was divided into 3 clusters. The majority of research is related to modeling of Profit Loss Sharing (PLS) schemes. However, despite the development of using mathematical model in those researches, the approach tends to be adaptive (inductive) from conventional models that already exist. A challenge to review the mainstream model need to be further critically reviewed. Hence, it is necessary for researcher to formulate a mathematical model with a deductive approach that is reduced from Islamic norms or ethics derived from the Alquran and Sunnah.]]>
<![CDATA[Zakat Intermediaries and Its Impact to Industry Growth: Growth Accelerators or Cost Center? ]]>
<![CDATA[Taufik Syamlan, Yaser]]>;
<![CDATA[Riyanto, Hadi]]>;
<![CDATA[Asfia, Asfa]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 4, No 2 (2021): IJIEF Vol 4 (2), July 2021 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.v4i2.11827
<![CDATA[This study aims to determine the effect of Islamic bank’s activity as a zakat intermediator on profitability, efficiency, market share, and growth of Islamic banks in Indonesia. This research also analyses from the literature the possibility of zakat as the funding or financing product. The method used is the panel data method and granger causality. The Independent variable external zakat collection while the dependent variables are ROA, BOPO, Market Share, and Growth. The samples of the research are five Islamic Bank who has done the external zakat collection. The data used are quarterly data with a period from 2013 to 2020. The results of this study indicate that this divine role increase the cost of operation and in the same time decreasing the profitability. The result also stated that the intermediating activities of zakat collection is not significant to push the bank market share, profitability as well as the Bank Growth. However, although in terms of regulation bank cannot be the Amil, in the future, there is potential of zakat can push the Islamic market share and bank growth since the zakat collection, Islamic bank can offer third party funding product as the intermediation between the zakat payer and the Amil zakat whose eligible to collect zakat according to the government regulation.]]>
<![CDATA[Why do Indonesian Islamic Banks Take the Risk?: The Case of Two Major Islamic Banks ]]>
<![CDATA[Yaser Taufik Syamlan]]>;
<![CDATA[Ar Rizal Azinuddin]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 1, No 2 (2019): IJIEF Vol 1 (2), January 2019 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.1210
<![CDATA[This study aims to analyze the effect of bank size, deposit guarantee system, number of competitors, leverage, and bank age on the risk-takingbehavior of Islamic banks in Indonesia at the period of 2001-2016. Risk taking is projected to Financing to Asset Ratio (FAR). The deposit guarantee system is proxiedby deposit guarantee using a dummy variable. The number of competitors is proxiedby the market value of Islamic Banking. Leverage is proxiedbythe total of third party funds. Bank Age is proxiedby bank age according to the 2001-2016 period of study. This study uses secondary data from published financial reports and uses panel data regression methods. The samples are two pioneers of Islamic Bank in Indonesia, namely Bank Muamalat Indonesia and Bank SyariahMandiri. The results of this study show that Bank Size has a positive effect on risk taking. As a result also applies to the number of competitors and Bank Age. Only Deposit Insurance variable that has a positive but not significant influence and Leverage variable has the significant negative effect. In conclusions, the Islamicbank takes the risk due to the tight competition, the age of bank, the amount of third party fund collected and the asset of the bank.]]>
<![CDATA[Impact of Liquidity Shortage Risk on Financial Performance of Sudanese Islamic Banks ]]>
<![CDATA[Mustafa, Omer Allagabo Omer]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 3, No 2 (2020): IJIEF Vol 3 (2), July 2020 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.3229
<![CDATA[The paper aims to examine the impact of Liquidity Shortage Risk (LSR) on the financial performance of Islamic Commercial Banks (ICBs) in Sudan (1992-2018). The following explanatory powers were used to indicate LSR; which include: liquid assets to total assets, total finance to total deposits, current deposits to total deposits and inflation as a control factor. The financial performance of ICBs (the dependent variable) was measured by the Return on assets. To concludes the relation between the variables, data were analyzed thought used Ordinary Least Squares technique. The main findings revealed that current deposits to total deposits, total finance to total deposits and inflation negatively affected the financial performance. While liquid assets to total assets have positive influence to the performance of ICBs. Monetary policy indirectly contributed to the exposure of ICBs to LSR through money supply increase. Moreover, high inflation motivated depositors to high cash withdrawal from their deposits; and, consequently exposed ICBs to LSR. The study recommends that ICBs should not wholly depend on current deposits as a source of finance, because customersʹ default might lead to LSR resulting in deteriorating profitability. Moreover, diversification of financial assets (with high liquidity) protects them from LSR.  As for the central bank, the contractionary monetary policy is a crucial to control inflation in order to improve the financial performance of ICBs.]]>
<![CDATA[Islamic Bank and Monetary Policy: The Case of Indonesia ]]>
<![CDATA[Regi Muzio Ponziani]]>;
<![CDATA[Tatik Mariyanti]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 3, No 1 (2020): IJIEF Vol 3 (1), January 2020 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.2124
<![CDATA[Islamic bank in Indonesia exists side by side with its conventional counterpart within dual banking system, while the central bank aims to achieve price stability in the economy using conventional and Islamic monetary instruments within dual monetary system. This posits a very unique environment for Islamic bank. This research aims to examine the role of Islamic bank in monetary policy transmission mechanism using Granger Causality and Autoregressive Distributed Lag (ARDL). The balance sheet components of deposit and financing were hypothesized to function in monetary transmission process within bank financing channel. Granger causality revealed that Islamic interbank overnight rate granger causes Islamic deposit and financing. Islamic deposit and financing granger cause industrial production index. Industrial production index granger cause inflation, Islamic deposit, and Islamic interbank overnight rate. Islamic deposit and inflation granger cause Islamic interbank overnight rate. The ARDL results showed that there were cointegrating relationships in the output and inflation model. Long-term convergence could be reached to correct deviations in output and inflation by way of Islamic banks’ deposit and financing. However, short-term influence is contributed only by Islamic banks’ deposit to output. Islamic banks’ deposit does not contribute in the short-run to inflation. Islamic banks’ financing does not have short-term relationship with output and inflation. Hence, there is a declining effectiveness of Islamic banks’ financing contribution to the economy.]]>
<![CDATA[Impact of Covid-19 on Islamic Stock Markets: An Investigation using Threshold Volatility and Event Study Models ]]>
<![CDATA[Mohammad Irfan]]>;
<![CDATA[Salina Kassim]]>;
<![CDATA[Sonali Dhimmar]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 4, No 1 (2021): IJIEF Vol 4 (1), January 2021 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.v4i1.10480
<![CDATA[The Covid-19 is an unexpected event in the world history with substantial socio-economic impact on the global economy. The global financial market was also badly affected as reflected by the extreme volatility as well as weak performances in the stock markets all over the world. How do the Islamic stock markets in various parts of the world behave during the Covid-19 shock? The objective of this study is to identify the impact of the Covid-19 pandemic as declared by the World Health Organization on the Islamic stock markets. Using the threshold volatility and event study models, the study analyses the impact of the Covid-19 announcement on the Islamic stock indices in the Indian Stock Exchange (represented by the Bombay Stock Exchange - BSE Shariah Index) and Indonesian Stock Exchange (represented by the Jakarta Islamic Indices - JII). With the date of event identified as 11th March 2020, the event window consists of 60, 30, and 20 days. The results show that the BSE Shariah and JII have positive coefficients, with the BSE Shariah Index shows negative response to the announcement of Covid-19 as global pandemic. On the other hand, the JII reacted positively to the event. The study shows the reaction of a stock exchange is dependent on other economic factors unique to the country, resulting in the events impact of the Covid-19 to vary from one country to another.]]>
<![CDATA[The Role of Religiosity in Explaining the Intention to use Islamic FinTech Among MSME Actors ]]>
<![CDATA[Rifaldi Majid]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 4, No 2 (2021): IJIEF Vol 4 (2), July 2021 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.v4i2.11833
<![CDATA[Islamic FinTech is growing rapidly and has become a new alternative of financing for micro, small, and medium enterprises (MSME) which are the backbone of the national economy. This study aims to examine the role of religiosity level of MSMEs actors on the intention to use Islamic FinTech. This research employed Partial Least Square - Structural Equation Modeling (PLS-SEM) method. The data collected using an online questionnaire adapted from previous research, then distributed to 100 Indonesian MSME actors and analyzed using smart PLS. The main result indicated religiosity plays a positively significant role in explaining the intention to use Islamic FinTech. In addition, Perceived Usefulness (PU), Perceived Ease of Use (PEOU), and Subjective Norm (SN) were also found to be influential, while both, Attitude Toward Behavior (ATB) and Perceived Behavioral Control (PBC), have no significant effect on behavioral intention. This research implicates the need for collaboration between the Financial Services Authority (OJK) as the regulator with Islamic FinTech institutions to improve literacy, providing incentives, strengthening consumer data protection, as well as integrating the values from the religious anglein the concept and practice of FinTech product and services that are based on Islamic guideline in order to attract the users from MSME actors.]]>
<![CDATA[Analysis of E-Banking Acceptance in Oman: The Case of Islamic Banks’ Customers ]]>
<![CDATA[Abdelghani Echchabi]]>;
<![CDATA[Salim Al-Hajri]]>;
<![CDATA[Islam Nazier Tanas]]>
<![CDATA[ International Journal of Islamic Economics and Finance (IJIEF) Vol 1, No 2 (2019): IJIEF Vol 1 (2), January 2019 ]]>
Publisher : <![CDATA[Universitas Muhammadiyah Yogyakarta ]]>
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DOI: 10.18196/ijief.128
<![CDATA[The main objective of this study is to examine the factors that influence the customers’ intention to adopt E-banking services in Oman across the Islamic Banking sector. This research endeavours to assess the willingness of the Islamic banks’ customers to adopt these services rather than the traditional banking methods. Accordingly, a sample of 300 Islamic banks' customers were surveyed in different districts of Oman. Afterwards, linear regression and one sample t-test were utilized in order to analyse the gathered data. The findings showed that customers have high tendency of embracing and utilizing E-banking services as opposed to the conventional services. Additionally, the results revealed that relative advantage, self-efficacy, ease of use, and facilitating conditions are the fundamental factors that impact the selection of E-banking by Islamic banks' customers in Oman. However, uncertainty had no significant effect on the intention of Islamic banks’ customers to use E-banking services. These findings would significantly contribute to the theory, and the way that Islamic banking sector would be practiced and regulated.]]>
