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[The Effect of Macroeconomic and Bank-Specific Variables to Risk-Taking of Islamic Bank in Indonesia ]]>
<![CDATA[Fakhrunnas, Faaza]]>
<![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.129
<![CDATA[This study aims to delineate the relationship between macroeconomic factors and bank-specific variables to risk-taking of Islamic bank. Adopting panel co-integration approach, this study posits macroeconomic and bank-specific factors as exogenous variables consisting to interest rate, exchange rate, inflation, bank size and equity to asset ratio. Risk-taking as endogenous variable has proxies non-performing loan or financing and bankruptcy risk. By using quarterly data from 2010-Q4 to 2017-Q4, this study finds the risk-taking behavior of all banks has long-term relationship with macroeconomic factors. In terms of bank specified characteristic, bank size becomes substantial factor for the bank’s risk mitigation. When the samples are grouped based on Islamic bank’s size, the big size of Islamic bank has no long-term co-integration to macroeconomic variables. As opposed to that, the middle and small size of Islamic bank have long-term relationship to macroeconomics factors and all macroeconomic variables affect the risk-taking of Islamic bank. It concludes that the medium and small size of Islamic banks are more vulnerable from external shock.]]>
<![CDATA[Why do Indonesian Islamic Banks Take the Risk?: The Case of Two Major Islamic Banks ]]>
<![CDATA[Syamlan, Yaser Taufik]]>;
<![CDATA[Azinuddin, Ar Rizal]]>
<![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[Understanding Consumer Receptiveness of Mortgage-Based Islamic Social Finance Using a Maqasid Framework: A Preliminary Study ]]>
<![CDATA[Amin, Hanudin]]>
<![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.2115
<![CDATA[This study proposes a workable model of the mortgage-based Islamic social finance (MBISF) and to test the model acceptance using a maqasid framework empirically. Three battery items are intended to measure each latent variable. As for independent variables, the latent variables are an educational programme, mortgage welfare, consumer justice and Islamic debt policy, whilst as for a dependent variable, the latent variable is consumer receptiveness.Using Structural Equation Modelling (SEM) ? Partial Least Squares or SEM-PLS, this study finds out that educational programme, mortgage welfare, consumer justice and Islamic debt policy are instrumental to lead the consumer receptiveness of MBISF. These results suggest that the elements of maqasid al-Shariah (education, welfare, justice and debt policy) are significant to consumer receptiveness of MBISF.The relationships established are then called as The Maqasid Theory of Consumer Behaviour (MTCB).Though the present work produced a fruitful outcome, yet the generalisation of the findings is somewhat limited and the application of the theory used in consumer behaviour is relatively fallen short or even unpopular in the conventional thinking. The results obtained provide better planning for Islamic banks to market their mortgages effectively.]]>
<![CDATA[Perception of Stakeholders on Abandoned Housing Projects in Malaysia ]]>
<![CDATA[Ariffin, Noraini Mohd]]>;
<![CDATA[Razak, Dzuljastri Abdul]]>;
<![CDATA[Imtiyaz, Mohamed Noorden Mohamed]]>
<![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.2118
<![CDATA[Home is a basicnecessity for everyone. However, one of the major issues affecting the construction industry in Malaysia today is that of abandoned housing projects. This issue has caused sufferings to the individuals and society. Several reasons have been cited for the abandoned housing projects, which include the debt financing structure, lack of justice and fairness, and weak regulatory system. The issues of the Islamic banking debt-based home financing products have remained prominent. There are also other issues such as role of the authority in addressing the situations. This study used mixed method of surveys and interviews in determining the perceptions of stakeholders regarding abandoned housing projects in Malaysia. The outcome of study highlights various prospects of mitigating the problem of abandoned housing projects. The findings show that the main cause of abandoned housing project from the interview with the relevant stakeholders is still due to insufficient legal provisions and protection to avoid and prevent abandonment of the housing projects, which is consistent with the previous studies. ]]>
<![CDATA[Islamic Bank’s Performance In The Light of Competition and CSR ]]>
<![CDATA[Tumewang, Yunice Karina]]>;
<![CDATA[Maharani, Novita Kusuma]]>
<![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.2113
<![CDATA[This study aims to examine the effect of competition and Corporate Social Responsibility (CSR) disclosure toward Islamic banks? financial performance. It used Generalized Least Square with panel data of Islamic Banks in ASEAN and GCC from 2012-2016 obtained from Orbis Bank Focus. H-Statistic (Panzar-Rosse) test was employed to measure the degree of competition and the relationship between variables. This study found that competition contributes a negative effect toward performance of Islamic banks, while CSR contributes a positive effect toward performance of Islamic banks. The result of this study suggests the management of Islamic banks to be more aware of the importance of management of CSR programs for the acceleration of SDGs set by UN as well as survival of companies in the future. Additionally, this study would like to support to push ahead government plan to strengthen domestic Islamic bank through consolidation or a merger of state-owned Islamic banks in order to lower the degree of competition which ultimately leads to a better performance of Islamic banks as well as an enhanced financial deepening in Indonesia.]]>
<![CDATA[Literature Review on REITs and Islamic REITs and Lessons Learned for Islamic REITs in Indonesia ]]>
<![CDATA[Indrawan, Imam Wahyudi]]>;
<![CDATA[Ningsih, Wahyu]]>
<![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.2114
<![CDATA[Real Estate Investment Trusts (REITs) as a new instrument in many capital markets is an interesting topic. Although not yet to be popular globally, REITs has gained popularity as flexible, cost efficient and profitable real estate investment vehicle for investors as well as provide liquidity for real estate sector, especially in advanced markets like in US, Japan and Singapore. The emergence of Islamic Financial Institutions (IFIs) coincided with increasing popularity of REITs open opportunity for development of Islamic REITs (I-REITs) as competitive but sharia compliant REITs compared to the conventional one. The dominance of Malaysia as market player of I-REITs as well as many underresearched areas open opportunity for betterment of the current I-REITs markets. This paper is a literature review with two objectives. First, to compile and review existing articles on REITs, both conventional and Islamic, and second, to gain lesson learned as material for development of I-REITs in Indonesia as ultimate goal. It is expected that this literature review will generate ideas for future development proposals on I-REITs, particularly in Indonesia. This study found that literature on I-REITs is relatively thin compared to its conventional counterparts, and Indonesia is still left behind in I-REITs development despite regulatory framework is already in force. Therefore, further effort to promote supply and demand of I-REITs in Indonesia should be taken as a way to diversify Islamic investment avenues for sharia oriented investors.]]>
<![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[Fintech and Its Potential Impact on Islamic Banking and Finance Industry: A Case Study of Brunei Darussalam and Malaysia ]]>
<![CDATA[Ali, Hassnian]]>;
<![CDATA[Abdullah, Rose]]>;
<![CDATA[Zaini, Muhd Zaki]]>
<![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.2116
<![CDATA[Fintech is growing at an exponential rate which leads to the emergence of innovative business models. Advanced technologies like Blockchain, internet of things (IoT?s), artificial intelligence (AI), and robotics have become mature enough to create disruption in banking and finance industry both conventional and Islamic finance industry. Brunei Darussalam and Malaysia, both, offer wide range of Shari'a compliant services. The main purpose of this study is to investigate the potential impact of Fintech on the Islamic banking and finance industry in Brunei and Malaysia. Accordingly, this research deals with the qualitative method to accomplish and fulfill the research objectives. Content analysis and Semi-structured interview approach were employed throughout the research. The results clearly show that Fintech has great potential impact on both conventional and Islamic finance industry. This potential impact is in both ways i.e. positive and negative. And, the response and reaction of Islamic finance industry towards the emergence of Fintech and its potential impact seems very slow as compared to their conventional counterparts. This study has indicated important points which include the necessity for the Islamic financial institution to cope with the growth of Fintech.]]>
<![CDATA[ISLAMIC BANK AND MONETARY POLICY: THE CASE OF INDONESIA ]]>
<![CDATA[Ponziani, Regi Muzio]]>;
<![CDATA[Mariyanti, Tatik]]>
<![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[EXPLORING THE KNOWLEDGE OF ISLAMIC BANKING AMONG LIBYAN BANKERS ]]>
<![CDATA[El-Brassi, Mohamed A.M. Abderahim]]>;
<![CDATA[Alhabshi, Syed Musa]]>;
<![CDATA[Abdullah Othman, Anwar Hasan]]>
<![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.2119
<![CDATA[Although it has been five years since the beginning of the conversion to the Islamic banking system (IBS) in Libya., the level of knowledge of Islamic banking (IB) products and services among bankers is yet to be investigated. The study uses a quantitative research design to address the issue. A total of 207 complete and valid questionnaires were collected from bankers in several Libyan commercial banks. Statistical Package for Social Sciences SPSS version 23.0 was employed to analyze the data. Findings showed that bankers have a basic to moderate level of knowledge of IB services and products. They were unaware of some important Islamic services and products such as Musharakah, Murabahah to the purchase ordered (MPO), current Islamic account and investment banking account. The findings also concluded that the bankers were only knowledgeable about concepts of Islamic principles such as the permissibility of selling and prohibition of riba. However, they were unaware of how riba is applied in the banking system. This study urges relevant Libyan stakeholders such as government and top bank management to develop intensive Islamic banking training programs. In order to increase the level of knowledge and awareness of bankers towards IB. This would help to facilitate the conversion to (IBS) in the country.]]>
