International Journal of Islamic Banking and Finance Research

Journal Information
ISSN / EISSN : 2576-4136 / 2576-4144
Total articles ≅ 52

Latest articles in this journal

Ataollah Rahmani, Alija Avdukic, Faizal A. Manjoo
International Journal of Islamic Banking and Finance Research, Volume 9, pp 32-44;

This paper applies an Islamic economic perspective to a major conundrum besetting the Islamic world, namely, how to provide financial support to expanding ageing Muslim populations. The paper employs a qualitative method involving descriptive and analytical methods whereby primary and secondary data are analyzed to inductively form a formula for an Islamic pension scheme. The results of this study suggest that despite the benefits and worldwide application of pension schemes, proponents of Islamic finance remain ill-prepared and slow to devise prototypes of workable Islamic pension models designed to address the needs of ageing Muslim populations. The vast majority of existing pension schemes fail to comply with the principles and values of Islamic law and ethics. As a generality, Muslim populations would prefer to remain without pension provision rather than endorse a religiously unlawful policy. The paper proposes that infaq as a key institution of Islamic moral economy, provides an ideal foundation for the development of an Islamic pension model that satisfies both legal and ethical Islamic stipulations. Keywords: Islamic pension, Islamic welfare, Muslim elderly, Muslim employees’ pensions, infaq and Islamic moral economy.JEL Classification Codes: G32, F65, L66, L25, M41.
Abdu Seid Ali, Suadiq Mehammed Hailu
International Journal of Islamic Banking and Finance Research, Volume 9, pp 21-31;

The study examines the cost and technical efficiency of selected Islamic banking windows of conventional banks in Ethiopia during the period of 2016-2020. The parametric method, stochastic frontier approach (SFA) was employed to measure both cost and technical efficiency of the banks. The efficiency scores of the sampled banks can be measured based on their performance in utilizing inputs to successfully generate output during the study period. It gauges the service quality of the banks taking loans and deposits as well as operating income and expenses into consideration. The study uses time series data from four conventional banks which provide Islamic banking widow in Ethiopia. The statistical findings show that the conventional banks have fairly better technical efficiency individually and collectively; however, the cost efficiency scores indicate that the banks are not efficient enough in terms of minimizing costs for a given scale and mix of outputs. Similarly, the results of the stochastic technical frontier estimates uncovers that there is positive significant relationship between the input variables namely total deposits and total operating expenses and output variables namely total financing and total operating income. The outputs remain an essential contributor to the cost efficiency in Islamic windows conventional banks in Ethiopia.  JEL Classification Codes: G01, G21, G24.
Faiza Kiran
International Journal of Islamic Banking and Finance Research, Volume 9, pp 14-20;

The study investigates the relationship between the growth of Islamic banks & financial institutions and the operational performance of small and medium enterprises located in Oman. The study employs qualitative method for data gathering. An effective questionnaire was created to gather the opinions of participants through semi-structured interviews. The sample consist of 40 employees of SMEs, 20 managers, and 2 financial experts. Thematic and descriptive analysis was used for analyzing data. Research findings revealed that owners/managers of SMEs and employees have effective knowledge regarding Islamic financing principles. Although the Islamic financing strategy is new in Oman, most participants including financial experts showed positive interest regarding its adaption. Further, findings indicated that there is a positive correlation between operations of Omani SMEs and Islamic financing. It is found that Islamic financing has benefitted SME operations as well as could play a significant role in the growth of SMEs and their operations in the future. This study helps policymakers and banks in understanding the scope of the growth in future. Thus, these banks can attract more SMEs and improve their growth rate. Finally, a comprehensive perception regarding workers, SME owners, and financial experts clarify willingness of using Islamic financing to get potential benefits in operations. JEL Classification Codes: F65, D02.
Burhan Rashid
International Journal of Islamic Banking and Finance Research, Volume 9, pp 1-13;

In light of Maulana Ashraf Ali Thanavi’s discussions and deliberations, the purpose of this study is to analyze the principles and methods for financial management in Islam, with a focus on three essential areas of finance: obtaining wealth, securing wealth, and spending wealth. For this aim, several of M. Thānavī’s written works were searched, and his discussions on Islamic economic teachings were collected and expanded upon, and references to all primary and secondary sources were provided. The entire content is presented here in a systematic and academic manner, culminating in a five-point conclusion. The findings show that the state of contentment in economic and financial concerns is the result of complete trust in God, the Creator and the Provider of all creatures, as well as belief in the Day of Judgment. This state of contentment and confidence is attained through practical measures such as avoiding extravagance, squandering, and ostentation while adopting a balanced and moderate lifestyle. Similarly, the data reveal that adhering to business ethics outlined in the Sharī‘ah ensures a safe, peaceful, and prosperous individual and communal existence, and bring about abundant barakah (benediction). The current paper will thus serve as a compendium of Islamic economic and financial teachings, as well as related moral and ethical precepts.JEL Classification Codes: A130, G41, G51. 
Mardhiah Gani, Rosmalina Hanafi, Kifayah Amar
International Journal of Islamic Banking and Finance Research, Volume 8, pp 41-53;

One of the bank management concerns related to sales performance is ensuring sales people perform the sales process correctly. Unfortunately, most sales people have problems in the sales process, which causes their low performance. Islamic banks in Indonesia also experienced this situation, so a strategy needs to overcome this problem. For instance, using surveillance tools such as Sales Force Automation (SFA) with sales funnel theory. An SFA tool is a sales system connected to computers and internet networks. It monitors sales processes and results, manages contacts, forecasts sales, and analyzes sales performance daily and monthly. Additionally, it helps sales forces to measure the ability to achieve targets, plan sales strategies and customer approaches, and increase work motivation. Also, raise awareness of developing skills, and provide up-to-date information to supervisors about sales force performance to determine the proper training. Therefore, the use of SFA tools is expected to increase the productivity of sales people in optimizing the fulfillment of deposit targets in Islamic banking. This paper reports the SFA design in the form of a dashboard model with a visual sales to funnel that shows the function of the salesperson in conducting the sales process ends with the results.
Moustapha Balde, Mamadou A. Konte, Babacar Sene
International Journal of Islamic Banking and Finance Research, Volume 8, pp 54-59;

The objective of this study is to see if the "sharia compatible" stock portfolios common to the various stock exchanges have better returns than the classic African indices. We propose two new methodologies based on the median statistic to build sharia-compliant portfolios to which we add the Dow Jones Islamic Market World (DJIMI) methodology. These three Islamic portfolios are compared with 13 African stock market indices (JTOPI, DCIBT, BRVM10, BRVMCI, MDEX, NSE20, MASI, NGSE30, FTN098, ALSIUG, DSEI, TUNINDEX, LASILZ).First, we looked at the returns and volatilities of weekly and monthly data for Islamic portfolios and classic indices and compared the spreads of their returns and risks.We find the results to be quite divergent, although we can see a trend that Islamic portfolios are more profitable and riskier than conventional indices;for both weekly and monthly data. We show with risk-adjusted performance analysis that Islamic portfolios outperform traditional index.JEL Classification Codes: G10, G11, G12, G14, G53.
Abdur Rouf, Jahid Hasan Rony, Nazmul Karim, Fahim Bhuyan, Momotaz Begum
International Journal of Islamic Banking and Finance Research, Volume 8, pp 29-40;

This paper has shown an online-based zakat management system named E-ZAKAT. Zakat is one of the main foundational goals of the world’s second-largest religion, Islam. So, it has indisputable importance for a country as well as the world economy and poverty eradication. During the COVID-19 pandemic, people have become habituated with the online system due to unavoidable situations, such as education and commodity market has now turned into online systems. However, an online base zakat management system for both donors and seekers has not prevailed widely. Here in this proposed system, the donor can calculate, donate their zakat, and the seeker can apply to receive it. Instead of providing cash, business or agricultural help is planned to ensure the economic stability of a low-income family. For this purpose, the expectant can claim support for green farming, agricultural equipment, or money to start a small business after ensuring the required verification and qualification steps. The proposed dynamic web application E-ZAKAT will provide an easier and hassle-free system for zakat donors and seekers with an attractive design. As a result, proper utilization of our system could provide a positive impact to change our society as well as our world.JEL Classification Codes: I3, N3, P36, P46, H3.
Sultan Khamis Said Al Bulushi
International Journal of Islamic Banking and Finance Research, Volume 8, pp 13-28;

This research aims to determine the viability for the operation of Islamic banks within the Omani banking system. By looking into various opportunities for Islamic banking in Oman and given the unique rules on transactions (fiqh muamalat) of Islamic banking based on the Shariah precepts or the so-called Islamic law. As the establishment of small and medium enterprises (SMEs) is rapidly growing in Oman, many SMEs can draw support from Islamic banks. The study used a mixed method approach to answer the research questions. Do the participants patronize Islamic banking over conventional banking?. The study compared both conventional and Islamic Banking. The population of the study represented bank officers, bank employees and customers. The sample of the study (n=100) participated in the survey. Another selected sample participated in interviews. Findings revealed different views over Islamic banking. Islamic banking is careful to provide products and services. Also, they are found to be capable of offering products and processes that answers the need of certain aspects with a risk management framework that is distinct from what normal banking provides. The study findings support the need for Islamic banking systems as it would be easier to spread Islamic banking and financing.
Moustapha Balde, Mamadou A. Konte
International Journal of Islamic Banking and Finance Research, Volume 8, pp 1-12;

Many techniques, combining qualitative and quantitative filters, have been proposed in the literature to construct an Islamic index on financial stock exchange. These are often based on fixed thresholds to define quantitative filters. However, as companies do not have the same characteristics from one sector to another, it is necessary to have heterogeneous thresholds for filtering purposes. Our contribution, here, is to propose a methodology which integrates this fact by using the median (statistic) criterion which is much more robust than the average criterion (vis-à-vis the presence of extreme values) but also the median statistic is consistent with the Wassatiya principle (50% of the way) than the 33% fraction used by many studies.
Shakeel Ul Rehman, Yasser Saleh Ali Almonifi, Rafia Gulzar
International Journal of Islamic Banking and Finance Research, Volume 7, pp 1-17;

The present study explores the impact of the COVID-19 pandemic on Islamic bank indices in GCC countries banking sector. The research aims to know the ability of Islamic Bank indices to face the COVID-19 crisis and examine whether Islamic bank indices can respond to the volatility in the stock exchanges. The study uses data of stock exchanges and Dow Jones Islamic Market Index in GCCcountriesbanking sector to relate the data before and during the COVID-19 crisis. It is found that Islamic banks have ability to respond the financial and economic crisis. Also, Islamic banks are able to provide their valuable services continuously and perform their financial activities during and after the crisis competently.The results also indicate that Islamic Bank Indices in GCC countries have performed better during 2019 with significant closing prices compared to 2020. As during 2020 fifteen banks recorded normal decreasing in itsindices and six Islamic banks achieved growth in its indices. In Q1, Q2 of 2021 the Islamic banks achieved positive growth in its indices price. This specifies that Islamic Banks have managed the financial and economic crisis in an efficient manner. JEL Classification Codes: E44, E58, G24, G18, H12.
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