Proceedings of the 7th AICIF 2019 - SCITEPRESS - Science and Technology Publications, Lda., 2020
Baitul Maal is deemed as a vital financial institution in the past, apart from its role as the st... more Baitul Maal is deemed as a vital financial institution in the past, apart from its role as the state's treasury in managing all types of revenues and expenditures that the Islamic State had. Previously, Baitul Maal served as the assurance body to ensure public security and preserve the welfare of the public. Due to this important function, the modern Muslim civilisation, especially in Indonesia, once more intended to establish an identical institution and have the aspiration to replicate the past function of Baitul Maal. When this research is conducted, the main purpose of this research is to compare the role and function of the past Baitul Maal with the role and function of present Baitul Maal in Indonesia, identify and analyze the similarities and differences between the two generations, whether the present Baitul Maal truly reflects the role and function of the past Baitul Maal, or it is just merely a name? The result of this research implies that there are several similarities and differences between the two institutions. The similar aspect between the two generations is in the aspect of concept and philosophy of Baitul Maal. Subsequently, the different aspect between the two institutions is in the aspect of the definition, source of wealth or revenues, expenditures, and organisational structure. In general, the past Baitul Maal serves as the state's treasury, while the present Baitul Maal serves as the charitable body. Due to this different characteristic between the two institutions, the past Baitul Maal has a wider type of revenues to be managed and larger type of expenditures to be spent, whilst current Baitul Maal is limited to the sadaqah types fund only that consist of Zakat, Infaq, Sadaqah, and Waqf. Thus, explicitly, its expenditures are also limited and only can be spent on the beneficiaries and the needy.
This study attempts to investigate the extent of financial discipline being observed by the credi... more This study attempts to investigate the extent of financial discipline being observed by the credit card users in Malaysia and subsequently relate the financial discipline levels to the profile of the credit card users. To measure financial discipline, the study focuses on repayment preference of the card users, as to whether they would pay in the full amount of the outstanding balance, pay according to ability, or pay the minimum required amount. Descriptive analysis is used to describe the profile of the credit card users, while the relationship between the repayment preferences and credit card users' profile is assessed empirically using Pearson correlation analysis and further substantiated by the chi-square analysis. The results of this study provide information on the segments of the credit card users that are susceptible to financial difficulties, which are of particular interests to the policymakers amid the increasing concerns of consumer indebtedness in this country.
Investigating Islamic banks customer satisfaction and switching behaviour is imperative for the I... more Investigating Islamic banks customer satisfaction and switching behaviour is imperative for the Islamic banking industry because it could assist in explaining the level of relationship between Islamic banks and their customers. Accordingly, the present study is aimed at examining customer satisfaction and switching behaviour of Islamic banks’ customers for the case of Saudi Arabia. Data for this study is obtained through survey method that involves the distribution of questionnaire to about 216 Islamic banks’ customers in Saudi Arabia. Importance and performance analysis (IPA) method is employed to achieve the objective of this study. The finding of this study indicated that, internet banking, shariah compliance, confidentiality, bank’s type, accuracy of bank statement, new technology adoption, and front-line friendliness dimensions fall under the quadrant of “keep up the good work” with high level of performance and importance. In contrast, the attributes that are located in quadrant called “concentrate here” are ATM location, clarity in giving explanation, promptness in giving response, staff understanding on Islamic contracts, staff-handling complaints and parking area.
An Islamic bank is now not only facing competition from its peer Islamic banks but also from conv... more An Islamic bank is now not only facing competition from its peer Islamic banks but also from conventional bans, which offer Islamic banking products through their Islamic subsidiary. When the competition becomes tougher, customers are given more options to choose their banks and switch from their current bank to other Islamic banks. Thus, the objective of this study is to evaluate factors influence the switching behavior of Islamic banking customers, in the case of Malaysia, based on the syariah compliance issues. Using logistic regression, the results show that the customer’s religion, type of account, and whether or not they have account in conventional bank are the significant factors to influence their switching behavior when they encounter non-syariah products and practices in their Islamic bank.
This study is aimed at investigating the dimensions of customer satisfaction in Indonesia Islamic... more This study is aimed at investigating the dimensions of customer satisfaction in Indonesia Islamic banking industry and how those dimensions could affect the customers’ switching behavior. Data collection is done by using self administered questionnaire and involves as many as 732 Islamic bank customers from the area of Jakarta. The methods used in this study are factor analysis and logistic regression model. Factor analysis has successfully uncovered the five dimensions of Indonesia Islamic banking customer satisfaction i.e. profitability, bank staff, accessibility, costs, and bank physical appearance. Afterwards, logistic regression evidences that four dimensions are significantly affecting Islamic bank customers’ intention to switch namely bank staff, bank physical appearance, accessibility, and costs. Profitability is perceived less important by respondents with regard to bank-switching issues.
... the global financial crisis in 1997/1998, the Malaysian government had instituted variousmacr... more ... the global financial crisis in 1997/1998, the Malaysian government had instituted variousmacroeconomic stabilization policies. ... Inflation may trigger crisis and recession if it is cured precisely ... long run, money is neutral and anticipated, which implies that there is no effect on either ...
The exercise of modelling the risk and volatility of corporate bonds is undertaken through credit... more The exercise of modelling the risk and volatility of corporate bonds is undertaken through credit spreads analysis, a practice normally used in bond pricing and risk management. Despite the rapid growth of the Malaysian bond market, very few studies on the behaviour of credit spreads, and whether its volatility is influenced by external shocks have been conducted. This paper aims to unveil the trends and behaviour of credit spreads during the 2007/2008 global financial crisis. It examines the credit spreads of the Malaysian bond market by modelling the conditional variance and asymmetric response to past shocks of the long and short term investment and non-investment grade papers. A generalised autoregressive conditional heteroscedasticity (GARCH) is applied to 10 different ratings and maturity over the period ranging from 1 August 2005 to 31 December 2011. More specifically, modelling the asymmetry via the threshold GARCH (TARCH) and exponential GARCH (EGARCH) models meets the aim of this paper which examines the asymmetric response to past shocks of the Malaysian bond market during the 2007/2008 global financial crisis. The empirical analysis of this paper provides evidence of strong time-varying conditional variance of the Malaysian bond credit spreads with 2 the expectation of future rate being the main determinant for credit spreads. Additionally, the evidence also indicates that past news or shocks as well as forecast variance are important in explaining the volatility of the spreads. The insignificant TARCH and EGARCH coefficients, nonetheless, indicate that there is no evidence of asymmetric response to past shocks in the volatility of bond spreads.
Journal of Islamic Accounting and Business Research, 2012
ABSTRACT Purpose ‐ This paper aims to provide a critical review of the literature on the rate of ... more ABSTRACT Purpose ‐ This paper aims to provide a critical review of the literature on the rate of return risk faced by Islamic banks. Design/methodology/approach ‐ Through a thorough review of the literature, this paper presents the discussion among scholars regarding the rate of return risk in Islamic banks. Findings ‐ One of the major issues highlighted is the sensitivity of Islamic banks to the changes in the conventional interest rate due to the fact that many Islamic banking products are benchmarked against the conventional interest rate. Moreover, the limited techniques and instruments available to mitigate the rate of return risk also need serious attention by the regulators. Research limitations/implications ‐ The study relies solely on the literature and highlights important issues in the area but does not provide any empirical evidence of the importance of rate of return risk to Islamic banks as it is beyond the scope of the paper. Practical implications ‐ There are several issues that should be taken into consideration. First, the dearth of empirical research on the identification of the rate of return risk in Islamic banking highlights the need to develop appropriate methodology to enrich the study on the rate of return risk. Second, more focus is needed to determine the impact of rate of return risk on the financial stability and the performance of Islamic banks. Originality/value ‐ This paper highlights several important issues relating to the rate of return risk in Islamic banks that are not widely discussed among researchers. In particular, this paper emphasizes the need to identify, handle and mitigate such risks to ensure the stability of Islamic banks. Therefore, this paper identifies a gap that needs further exploration so as to contribute towards enriching the existing literature in this area.
Skip to Main Content. Due to scheduled maintenance access to the Wiley Online Library may be disr... more Skip to Main Content. Due to scheduled maintenance access to the Wiley Online Library may be disrupted as follows: Saturday, 2 October - New York 0500 EDT to 0700 EDT; London 1000 BST to 1200 BST; Singapore 1700 SGT to 1900 SGT. ...
Proceedings of the 7th AICIF 2019 - SCITEPRESS - Science and Technology Publications, Lda., 2020
Baitul Maal is deemed as a vital financial institution in the past, apart from its role as the st... more Baitul Maal is deemed as a vital financial institution in the past, apart from its role as the state's treasury in managing all types of revenues and expenditures that the Islamic State had. Previously, Baitul Maal served as the assurance body to ensure public security and preserve the welfare of the public. Due to this important function, the modern Muslim civilisation, especially in Indonesia, once more intended to establish an identical institution and have the aspiration to replicate the past function of Baitul Maal. When this research is conducted, the main purpose of this research is to compare the role and function of the past Baitul Maal with the role and function of present Baitul Maal in Indonesia, identify and analyze the similarities and differences between the two generations, whether the present Baitul Maal truly reflects the role and function of the past Baitul Maal, or it is just merely a name? The result of this research implies that there are several similarities and differences between the two institutions. The similar aspect between the two generations is in the aspect of concept and philosophy of Baitul Maal. Subsequently, the different aspect between the two institutions is in the aspect of the definition, source of wealth or revenues, expenditures, and organisational structure. In general, the past Baitul Maal serves as the state's treasury, while the present Baitul Maal serves as the charitable body. Due to this different characteristic between the two institutions, the past Baitul Maal has a wider type of revenues to be managed and larger type of expenditures to be spent, whilst current Baitul Maal is limited to the sadaqah types fund only that consist of Zakat, Infaq, Sadaqah, and Waqf. Thus, explicitly, its expenditures are also limited and only can be spent on the beneficiaries and the needy.
This study attempts to investigate the extent of financial discipline being observed by the credi... more This study attempts to investigate the extent of financial discipline being observed by the credit card users in Malaysia and subsequently relate the financial discipline levels to the profile of the credit card users. To measure financial discipline, the study focuses on repayment preference of the card users, as to whether they would pay in the full amount of the outstanding balance, pay according to ability, or pay the minimum required amount. Descriptive analysis is used to describe the profile of the credit card users, while the relationship between the repayment preferences and credit card users' profile is assessed empirically using Pearson correlation analysis and further substantiated by the chi-square analysis. The results of this study provide information on the segments of the credit card users that are susceptible to financial difficulties, which are of particular interests to the policymakers amid the increasing concerns of consumer indebtedness in this country.
Investigating Islamic banks customer satisfaction and switching behaviour is imperative for the I... more Investigating Islamic banks customer satisfaction and switching behaviour is imperative for the Islamic banking industry because it could assist in explaining the level of relationship between Islamic banks and their customers. Accordingly, the present study is aimed at examining customer satisfaction and switching behaviour of Islamic banks’ customers for the case of Saudi Arabia. Data for this study is obtained through survey method that involves the distribution of questionnaire to about 216 Islamic banks’ customers in Saudi Arabia. Importance and performance analysis (IPA) method is employed to achieve the objective of this study. The finding of this study indicated that, internet banking, shariah compliance, confidentiality, bank’s type, accuracy of bank statement, new technology adoption, and front-line friendliness dimensions fall under the quadrant of “keep up the good work” with high level of performance and importance. In contrast, the attributes that are located in quadrant called “concentrate here” are ATM location, clarity in giving explanation, promptness in giving response, staff understanding on Islamic contracts, staff-handling complaints and parking area.
An Islamic bank is now not only facing competition from its peer Islamic banks but also from conv... more An Islamic bank is now not only facing competition from its peer Islamic banks but also from conventional bans, which offer Islamic banking products through their Islamic subsidiary. When the competition becomes tougher, customers are given more options to choose their banks and switch from their current bank to other Islamic banks. Thus, the objective of this study is to evaluate factors influence the switching behavior of Islamic banking customers, in the case of Malaysia, based on the syariah compliance issues. Using logistic regression, the results show that the customer’s religion, type of account, and whether or not they have account in conventional bank are the significant factors to influence their switching behavior when they encounter non-syariah products and practices in their Islamic bank.
This study is aimed at investigating the dimensions of customer satisfaction in Indonesia Islamic... more This study is aimed at investigating the dimensions of customer satisfaction in Indonesia Islamic banking industry and how those dimensions could affect the customers’ switching behavior. Data collection is done by using self administered questionnaire and involves as many as 732 Islamic bank customers from the area of Jakarta. The methods used in this study are factor analysis and logistic regression model. Factor analysis has successfully uncovered the five dimensions of Indonesia Islamic banking customer satisfaction i.e. profitability, bank staff, accessibility, costs, and bank physical appearance. Afterwards, logistic regression evidences that four dimensions are significantly affecting Islamic bank customers’ intention to switch namely bank staff, bank physical appearance, accessibility, and costs. Profitability is perceived less important by respondents with regard to bank-switching issues.
... the global financial crisis in 1997/1998, the Malaysian government had instituted variousmacr... more ... the global financial crisis in 1997/1998, the Malaysian government had instituted variousmacroeconomic stabilization policies. ... Inflation may trigger crisis and recession if it is cured precisely ... long run, money is neutral and anticipated, which implies that there is no effect on either ...
The exercise of modelling the risk and volatility of corporate bonds is undertaken through credit... more The exercise of modelling the risk and volatility of corporate bonds is undertaken through credit spreads analysis, a practice normally used in bond pricing and risk management. Despite the rapid growth of the Malaysian bond market, very few studies on the behaviour of credit spreads, and whether its volatility is influenced by external shocks have been conducted. This paper aims to unveil the trends and behaviour of credit spreads during the 2007/2008 global financial crisis. It examines the credit spreads of the Malaysian bond market by modelling the conditional variance and asymmetric response to past shocks of the long and short term investment and non-investment grade papers. A generalised autoregressive conditional heteroscedasticity (GARCH) is applied to 10 different ratings and maturity over the period ranging from 1 August 2005 to 31 December 2011. More specifically, modelling the asymmetry via the threshold GARCH (TARCH) and exponential GARCH (EGARCH) models meets the aim of this paper which examines the asymmetric response to past shocks of the Malaysian bond market during the 2007/2008 global financial crisis. The empirical analysis of this paper provides evidence of strong time-varying conditional variance of the Malaysian bond credit spreads with 2 the expectation of future rate being the main determinant for credit spreads. Additionally, the evidence also indicates that past news or shocks as well as forecast variance are important in explaining the volatility of the spreads. The insignificant TARCH and EGARCH coefficients, nonetheless, indicate that there is no evidence of asymmetric response to past shocks in the volatility of bond spreads.
Journal of Islamic Accounting and Business Research, 2012
ABSTRACT Purpose ‐ This paper aims to provide a critical review of the literature on the rate of ... more ABSTRACT Purpose ‐ This paper aims to provide a critical review of the literature on the rate of return risk faced by Islamic banks. Design/methodology/approach ‐ Through a thorough review of the literature, this paper presents the discussion among scholars regarding the rate of return risk in Islamic banks. Findings ‐ One of the major issues highlighted is the sensitivity of Islamic banks to the changes in the conventional interest rate due to the fact that many Islamic banking products are benchmarked against the conventional interest rate. Moreover, the limited techniques and instruments available to mitigate the rate of return risk also need serious attention by the regulators. Research limitations/implications ‐ The study relies solely on the literature and highlights important issues in the area but does not provide any empirical evidence of the importance of rate of return risk to Islamic banks as it is beyond the scope of the paper. Practical implications ‐ There are several issues that should be taken into consideration. First, the dearth of empirical research on the identification of the rate of return risk in Islamic banking highlights the need to develop appropriate methodology to enrich the study on the rate of return risk. Second, more focus is needed to determine the impact of rate of return risk on the financial stability and the performance of Islamic banks. Originality/value ‐ This paper highlights several important issues relating to the rate of return risk in Islamic banks that are not widely discussed among researchers. In particular, this paper emphasizes the need to identify, handle and mitigate such risks to ensure the stability of Islamic banks. Therefore, this paper identifies a gap that needs further exploration so as to contribute towards enriching the existing literature in this area.
Skip to Main Content. Due to scheduled maintenance access to the Wiley Online Library may be disr... more Skip to Main Content. Due to scheduled maintenance access to the Wiley Online Library may be disrupted as follows: Saturday, 2 October - New York 0500 EDT to 0700 EDT; London 1000 BST to 1200 BST; Singapore 1700 SGT to 1900 SGT. ...
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internet banking, shariah compliance, confidentiality, bank’s type, accuracy of bank statement, new technology adoption, and front-line friendliness dimensions fall under the quadrant of “keep up the good work” with high level of performance and importance. In contrast, the attributes that are located in quadrant called “concentrate here” are ATM location, clarity in giving explanation, promptness in giving response, staff understanding on Islamic contracts, staff-handling complaints and parking area.
internet banking, shariah compliance, confidentiality, bank’s type, accuracy of bank statement, new technology adoption, and front-line friendliness dimensions fall under the quadrant of “keep up the good work” with high level of performance and importance. In contrast, the attributes that are located in quadrant called “concentrate here” are ATM location, clarity in giving explanation, promptness in giving response, staff understanding on Islamic contracts, staff-handling complaints and parking area.