Showing papers in "Invest Journal Of Sharia & Economic Law in 2023"
TL;DR: In this paper , the authors explored the legitimacy of the use of fractional reserve system in Islamic banking from the normative premise of Islamic economics using a methodology of structured literature review and a conceptual analysis of the literature following the approach of Critical Interpretive Synthesis.
Abstract: This paper explores the legitimacy of the use of Fractional Reserve System in Islamic banking from the normative premise of Islamic economics. The paper uses a methodology of structured literature review and a conceptual analysis of the literature following the approach of Critical Interpretive Synthesis (CIS). The first section of the paper presents the analysis on fractional Reserve Bank (FRB) system, how it leads to multiplication of money supply and influence the long-term inflation and business cycles; the second part of the article explains the extent to which this framework obstructs in the achievement of the objectives of Islamic Economics. This is followed by a reflective analysis of concepts and information gathered from the literature to evaluate how FRB system fits into the fabric of Islamic Economic. The second section of this paper explains how Islamic Banks, with an FRB model and its inclination towards debt-based instruments, would allow Islamic banks to contribute to the problem of inflation, even if they use Musharakah and Mudarabah as a mode of finance.
TL;DR: In this article , the authors used an Islamic paradigm with an Islamic ethnomethodology approach to investigate mosque accounting practices and concluded that mosque accounting is not only about material (money) but also about a sense of faith in the creator.
Abstract: This study utilizes an Islamic paradigm with an Islamic ethnomethodology approach to investigate mosque accounting practices. The study uses both primary data, obtained through interviews and observations, and secondary data, which consists of documentation of mosque financial information records in books and on information boards. The data is analyzed through five stages: charity, knowledge, faith, revelation information, and good deeds, and collected through interviews, observation, and documentation. The study results show that mosque accounting practices are based on three main values: sincerity, responsibility, and trustworthiness. First, capital and cost accounting are practiced based on sincerity, which is reflected through the voluntary donations of funds by donors for the prosperity of the masjid, and the optimal work of administrators who do not receive a salary. Second, a simple accounting recording method is used, requiring a sense of responsibility, which is reflected through detailed financial records in album booklets and on bulletin boards. Third, accountability for incoming and outgoing funds is conditional on maintaining the congregation's trust, which is reflected in the expressions of the informants who stated that financial responsibility is their effort to maintain donors' trust. The implication of this research is to present the concept of mosque accounting practices based on the values of faith and fear of God. It concludes that mosque accounting is not only about material (money) but also about a sense of faith in the creator. Further research can study mosque accounting using other social theoretical approaches, such as Islamic phenomenology.
TL;DR: In this article , the authors investigated the impact of electricity consumption on economic growth in Nigeria from 1986 to 2021 by using the Autoregressive Distributed Lag (ARDL) model.
Abstract: As one of the significant components of energy consumption, the importance of electricity to economic growth has been recognized by economists and business people, engineering, and government agencies. This paper seeks to investigate the impact of electricity consumption on economic growth in Nigeria from 1986 to 2021 by using the Autoregressive Distributed Lag (ARDL) model. The properties of the series were first checked using Augmented Dickey fuller (ADF) and Phillip Peron (PP) unit root tests, and the result found a mixture of the order of integration, which paved the use ARDL model. The findings of the ARDL bond test indicate the present cointegration. Evidence from the short run reveals that the speed of adjustment is negative and statically significant, confirming the expected equilibrium process in the short-run dynamics among the variables under study. The results also show that energy consumption, inflation, and industrial product are statistically significant and positively affect Nigeria's short and long-run economic growth. At the same time, Unemployment is negative and statistically significant both in the short and long run. Based on the findings, the paper recommends that government should undertake serious measures to curtail the shortage of electricity consumption in the country to promote economic growth in general. The government should adopt appropriate policies to reduce Unemployment, adversely affecting economic growth.
TL;DR: In this article , the application of maintenance functions at KSP BMT Surya Abadi Jenangan Ponorogo, an esteemed Islamic financial institution that has experienced rapid development in Indonesia and has contributed to economic improvement through its diverse financing products.
Abstract: Sharia Savings and Loan Cooperatives are unique in that they must balance their business principles with high and volatile work demands. The care function of human resource management is an essential aspect of ensuring employee well-being and job satisfaction within organizations, including sharia savings and loan cooperatives. This study specifically focuses on examining the application of maintenance functions at KSP BMT Surya Abadi Jenangan Ponorogo, an esteemed Islamic financial institution that has experienced rapid development in Indonesia and has contributed to economic improvement through its diverse financing products. This research aims to provide valuable insights into the organization's practices and contribute to the broader understanding of human resources management in Islamic institutions and ultimately improve the quality of their workforce and service performance. Through a comprehensive analysis, this study has illustrated the practices carried out by the organization in maintaining employee welfare and retention. KSP BMT SURYA Abadi Jenangan Ponorogo demonstrates efforts in prioritizing employee welfare and retention, with notable aspects including occupational health and safety, communication, and human resource welfare programs, although improvements are needed, particularly in the area of occupational health and safety.
TL;DR: In this article , the authors used qualitative descriptive methodology to determine the level of performance of BPRS in Indonesia during the Covid-19 pandemic in 2019-2021, based on OJK Circular Letter; SEOJK number 28/SEOJK.
Abstract: Covid-19 has a significant impact on the economy, including the Islamic financial industry in Indonesia. So, research on the performance of Islamic banks, including the performance of Islamic banks in Indonesia is very interesting to study. This study aims to determine the level of performance of BPRS in Indonesia during the Covid-19 pandemic in 2019-2021, based on OJK Circular Letter; SEOJK number 28/SEOJK.03/2019. This study uses qualitative descriptive methodology. The results of the study show that the average CAR ratio of BPRS in 2019-2021 is 23.46 percent, which indicates that BPRS is very healthy. The average NPF ratio of BPRS in 2019-2021 is 7.08 percent, which indicates that BPRS is healthy. And the average ROA ratio of BPRS in 2019-2021 is 2.11 percent, which indicates that BPRS is very healthy. Based on the above research results, the performance of BPRS in Indonesia during the Covid-19 pandemic was exceptional. This means that BPRS in Indonesia can continue to operate intact even under sluggish economic conditions. This shows that the performance of BPRS in Indonesia during the Covid-19 pandemic is in the healthy and stable category. This emphasizes that Islamic banks are resilient in the face of an economic crisis. Therefore, it is expected that bank management should always improve the performance of BPRS by paying attention to the capital aspect, asset quality aspect, income aspect, and liquidity aspect.
TL;DR: In this paper , the authors assess the level of awareness and understanding of Takaful, an Islamic insurance scheme, as compared to traditional insurance among students of Islamic Studies in Sri Lanka.
Abstract: The purpose of this study is to assess the level of awareness and understanding of Takaful, an Islamic insurance scheme, as compared to traditional insurance among students of Islamic Studies in Sri Lanka. Despite the growing popularity of Takaful in the country, there is a notable lack of awareness and understanding of this concept among Sri Lankans. By conducting a survey among Sri Lankan students, this research seeks to determine the level of awareness and acceptance of Takaful, while identifying the factors that influence this perception. The research methodology employed was to collect data through questionnaires distributed to customers in Sri Lanka. The findings indicate that although there is a growing demand for Takaful in the country, a significant portion of the population is either unaware of its existence or hesitant to adopt it due to prevailing misconceptions. The study highlights the importance of increasing awareness and understanding of Takaful to encourage greater participation in this form of insurance. In addition, future research could examine the reasons for limited engagement with Takaful and explore strategies to promote insurance literacy and active participation in the industry.
TL;DR: In this article , the authors analyzed the relevance of Monzer Kahf's view of Islamic banking to the development of Islamic banks in Indonesia, with a particular focus on Bank Syariah Indonesia (BSI).
Abstract: This article aims to analyze the relevance of Monzer Kahf's view of Islamic banking to the development of Islamic banking in Indonesia, with a particular focus on Bank Syariah Indonesia (BSI). Although Islamic banking has grown rapidly in Indonesia, there are still challenges in understanding the factors that influence its success and how these banks can serve the community more effectively. To achieve this goal, the method used is library research, which aims to collect some information obtained through books, journals and online media that have relevance to the topic with Monzer Kahf's Islamic banking thinking and secondary data on the development of Bank Syariah Indonesia. The results of the analysis show that some of the key factors identified by Monzer Kahf, such as increasing the form of deposits, improving the quality of customer service, expanding the banking service base, capital protection, and providing social and humanitarian services, are very relevant in the context of the development of Islamic banks in Indonesia. Bank Syariah Indonesia, as the largest Islamic bank in Indonesia, plays an important role in driving the country's economic growth. In addition, the bank is also expected to improve its social services to the community through various aspects, including education, health, environment and renewable energy. In conclusion, Monzer Kahf's views on Islamic banking are highly relevant to the development of Islamic banking in Indonesia.