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Tazkia Islamic Finance and Business Review
ISSN : 24600717     EISSN : 24600717     DOI : -
Core Subject : Economy,
Tazkia Islamic Finance and Business Review (TIFBR) is a peer-reviewed journal published by the Institute for Research and Community Empowerment (IRCE), Tazkia University College of Islamic Economics in collaboration with Association of Islamic Economics Lecturers (ADESY). The Journal is semi-annual journal issued in July and December. The aim of the journal is to disseminate Islamic Economics, finance and business researches done by researchers both from Indonesia and overseas.
Arjuna Subject : -
Articles 127 Documents
Hubungan Antara Perdagangan Internasional, Pertumbuhan Ekonomi Dan Perkembangan Industri Keuangan Syariah Di Indonesia Rusydiana, Aam Slamet
Tazkia Islamic Finance and Business Review Vol 4, No 1 (2009)
Publisher : Institute for Research and Community Empowerment (LPPM TAZKIA)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30993/tifbr.v4i1.30

Abstract

Di dalam konteks ekonomi terbuka, perdagangan internasional dalam hal ini adalah ekspor dan impor, dan aliran dana antarnegara menjadi sesuatu yang tidak dapat dinafikan perannya dalam pemberian kontribusi bagi pertumbuhan. Sedangkan untuk hubungan keduanya terhadap perkembangan industri keuangan syariah di Indonesia nampaknya hingga saat ini belum ada yang mencoba menelisik lebih jauh. Studi ini mencoba menganalisis pola hubungan antara perdagangan internasional, pertumbuhan ekonomi dan perkembangan industri keuangan dan bisnis syariah di Indonesia dengan menggunakan metode Vector Auto Regression (VAR) dan Vector Error Correction Model (VECM).Hasilnya menunjukkan bahwa pola hubungan antara ekspor dan growth adalah bi-directional causation yakni growth driven export dan export led growth. Begitu pula variabel impor. Temuan lain yang menarik adalah bahwa ternyata booming industri syariah belakangan ini tidak berkorelasi positif terhadap pertumbuhan ekonomi Indonesia secara makro. Begitu pula fakta bahwa semakin besar growth Indonesia tidak diiringi dengan semakin suburnya industri keuangan syariah. Oleh karena itu, syarat utama agar share industri syariah Indonesia dapat tumbuh dan berkembang signifikan adalah perlu political will dari pemerintah.JEL Classification : F40, F43, G20, G21Keywords : Perdagangan Internasional, Growth, Keuangan Syariah, VAR/VECM
Customer Satisfaction with Islamic Banks: A Case Study of Al Rajhi Bank Al Dugaishem, Faten A.; Khawaja, M. Junaid
Tazkia Islamic Finance and Business Review Vol 11, No 1 (2017)
Publisher : Institute for Research and Community Empowerment (LPPM TAZKIA)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30993/tifbr.v11i1.119

Abstract

Abstract. This study aims to identify the factors that lead to the level of customer satisfaction about online services provided by Al Rajhi Bank, which is the largest Islamic Bank in the world. This study is conducted on a sample of customers who deal with Al Rajhi Bank in Qassim region, Saudi Arabia by measuring different constructs such as; reliability, efficiency, response, and empathy which have been taken as determinants of customer satisfaction. The sample size of the respondents is 184 clients. The study reveals that reliability, efficiency, response and empathy all have a positive and significant impact on customer satisfaction. In addition, the results also show that the dimension “efficiency” plays a leading role in the customer satisfaction. This means that indicators of efficiency like ease of service, diversity of online services, organized information and transactions in reasonable times frame are the most important factors in achieving customer satisfaction.
Analysis of the Effect of Sharia Supervisory Board (SSB) Function on Earning Quality of Islamic Banks Hendra, Grandis Imama
Tazkia Islamic Finance and Business Review Vol 10, No 2 (2016)
Publisher : Institute for Research and Community Empowerment (LPPM TAZKIA)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30993/tifbr.v10i2.109

Abstract

Analysis of the Effect of Sharia Supervisory Board (SSB) Function on Earning Quality of Islamic Banks Grandis Imama Hendra, MSACCLecturer of Islamic Accounting, STEI TazkiaABSTRACT Objective - This study aims to identify the effect of Sharia Supervisory Board (SSB) function on the level of earnings quality in Indonesian Islamic banks. SSB criteria used in this study are size, frequency of Meeting and educational background (Finance / Accounting). Method - Panel data regression is employed to analyze the effect of Sharia Supervisory Board characteristics on the earning quality of Islamic bank. The data were taken from 11 full-fledge Islamic banks in Indonesia with available financial statements from period 2010 to 2015.  Results - The size of Sharia Supervisory Board members has a positive effect on the improvement of earning quality in Islamic banking. Two other variables, namely the frequency of SSB meetings and educational background do not affect the improvement of earnings quality. Conclusion - Studies of the role of Sharia Supervisory Board to the quality of financial statements is still limited, especially in the quality of earning that became the basis in determining the distribution of Islamic banks profit sharing. The main contribution in this research is that the role of SSB should be improved in order to increase the quality of financial reporting. Keyword: Quality of profit, Sharia Supervisory Board (SSB), Sharia/Islamic Bank.  
Measuring the Competitiveness of Islamic Banking in Indonesian Dual Banking System Ascarya, Ir; Yumanita, Diana
Tazkia Islamic Finance and Business Review Vol 3, No 2 (2008)
Publisher : Institute for Research and Community Empowerment (LPPM TAZKIA)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30993/tifbr.v3i2.23

Abstract

Islamic banks in many countries have emerged as important component of financial system that contributes to the growth and development of the country’s economy. They have proven to be a viable and competitive component of the overall financial system. In the dual banking system, Islamic banks have to be competitive to survive. One of the key to competitiveness is efficiency. This study will measure and compare the efficiency of Islamic and conventional banks in Indonesia using Data Envelopment Analysis (DEA) methodology. DEA is a non-parametric, deterministic methodology for determining the relative efficiency and managerial performance, based on the empirical data on chosen inputs and outputs of a number of decision making units. DEA allows us to compare the relative efficiency of banks by determining the efficient banks as benchmarks and by measuring the inefficiencies in input combinations (slack variables) in other banks relative to the benchmark. Intermediation approach will be applied. This study will identify the sources and level of inefficiency for each of the inputs and outputs of Islamic banks and conventional banks in Indonesia. The result shows that in overall, Islamic banking is relatively more efficient than conventional banking. This means that Islamic banks are competitive enough to compete with conventional banks. Islamic banking is technically more efficient, but less scale efficient than conventional banking. Internal inefficiency is the main source of disintermediation of conventional banking in Indonesia. Furthermore, accelerated expansion, organically and inorganically, is needed to improve scale and overall efficiencies of Islamic banking in Indonesia.Keywords: Banking, Islamic Banking, Efficiency, Data Envelopment Analysis
THE IMPLEMENTATION OF EFFICIENT TRADE MATRIX AND GOLD RESERVE REQUIREMENT FOR COMMODITY TRADE AMONG ASEAN COUNTRIES anisak, nurul
Tazkia Islamic Finance and Business Review Vol 10, No 1 (2016)
Publisher : Institute for Research and Community Empowerment (LPPM TAZKIA)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30993/tifbr.v10i1.104

Abstract

Objective - This study attempts to implement the efficient trade matrix among five selected ASEAN countries and its settlement by the gold reserve requirements through Multi-Bilateral Payments Arrangement (MBPA).Methods – The study is a qualitative research with analytic description. The purpose of this qualitative-descriptive study is to simulate the implementation of gold in the Multi-Bilateral Payment Arrangement among ASEAN countries using the current trade data.Results – This paper argues that the Southeast Asian countries can solve the problem through their internal coordination, particularly in terms of trade. One of the efforts is to reduce even eliminate the market risk by using the efficient payment arrangement.Conclusions – The study implied that the quantity amount of gold required to settle the trade balance will be reduced from the early gross payment. However, the ASEAN countries need to strengthen the cooperation among them through maximizing the trade relationship.
Analisis Strategi Promosi Kredit Pemilikan Rumah (KPR) Sistem Konvensional Dan Syariah (Studi Kasus : BTN Dan BTN Syariah Kantor Cabang Solo) Najib, Mukhamad; Munandar, Jono M.; Setiyawati, Agustina
Tazkia Islamic Finance and Business Review Vol 3, No 1 (2008)
Publisher : Institute for Research and Community Empowerment (LPPM TAZKIA)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30993/tifbr.v3i1.18

Abstract

Residence is one of the primary needs for human being’s life, besides food, clothing, education, and healthy. Many of banks now, have started to offer a residence service product (Kredit Pemilikan Rumah, KPR). As one of the biggest bank in Indonesia, Bank Tabungan Negara (BTN) has an advantage as a pioneer to provide such KPR. To compete with other banks, KPR BTN (including BTN Konvensional and BTN Sharia branch offi ce Solo), as one of the branch unit of Central BTN, has to do strategic promotion effectively so that BTN can come up with their brand image and makes a strong position in market. The aims of this research are: (1). To learn about the promotion activity being used by BTN and BTN Sharia branch offi ce Solo; (2). To identify factors which develop a promotion strategy in BTN and BTN Sharia branch office Solo; (3). To analyze an alternative promotion strategy that might effective to be applied in both BTN and BTN Sharia branch Solo. This research used primary and secondary data. The primary data was collected through out interview and questionnaire while secondary data was obtained from company’s information, literature and electronic publication. In the process of data analysis, it will use factor analysis and Analytical Hierarchy Process using Expert Choice 2000 and Microsoft Excel.BTN and BTN Sharia branch offi ce Solo develop the KPR’s promotion with advertising, sales promotion, publicity and public relation, personal selling, marketing and direct selling. The results of this analysis clearly fi ng out that promotion strategy of BTN branch offi ce Solo is set by fi ve factors, such as market characteristic, facility and equipment, consumer’s characteristic, competition, and company’s Segmenting, Targeting, and Positioning (STP). While, the factors of promotion strategy in BTN Sharia branch office Solo consist of competition, promotion budget, consumer’s characteristic, human research and other marketing mix except promotion. The alternatives which can be pursued are BTN branch offi ces Solo have to increase the advertising activity as the main alternative strategy. The alternative strategy for BTN Sharia branch offi ce Solo is to increase the publicity and public relation as the main strategy alternative.Keywords: Residence Service Product (KPR), Promotion Strategy.
THE EFFECT OF MAQĀṢID-BASED DEVELOPMENT VARIABLES ON ECONOMIC GROWTH BASED ON UMER CHAPRA’S PERSPECTIVE (CASE STUDY: NINE SELECTED OIC COUNTRIES) parisi, salman al; Ismail, Nurizal; ., Indra
Tazkia Islamic Finance and Business Review Vol 9, No 2 (2015)
Publisher : Institute for Research and Community Empowerment (LPPM TAZKIA)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30993/tifbr.v9i2.94

Abstract

Objectives: Human Development Index (HDI) has multidimensional aspects of life. In fact, HDI measures only physical aspects that are needed by human such as education, health and wealth. Accordingly, discussing on human must cover material, physical and spiritual aspects. Maqāṣid is needed as a wasilah (medium) to promote the benefit of human (maslahat), which contains of daruriyyat, hajiyat and tahsiniyat. By then, this study aims to analyze maqāṣid based development variables of Umer Chapra perspective on economic growth in 9 selected OIC member countries.Method: The methodology of the study used mixed methods: qualitative and quantitative. The quantitative applies panel data regression analysis with 9 selected OIC countries (Indonesia, Jordan, Kazakhstan, Kyrgyzstan, Mesir, Pakistan, Togo, Turkey and Uzbekistan) with time series from 2004 to 2013. For qualitative applies content analysis approach by using tafsir of Ibnu Katsir.Results: The finding shows that all independent variables, which are literacy rate, enrollment of school, poverty rate, gini index, life expectancy at birth, rule of law and voice accountability have significant effect on economic growth in 9 selected OIC member countries, both simultaneously and individually.Conclusion: This study concludes that HDI which is bounded by maqāṣid approach affects on increasing of economic growth in 9 of OIC member countries significantly.
The Correlated Factors of Mandatory Social Reporting by Islamic Banks in Indonesia Siswantoro, Dodik
Tazkia Islamic Finance and Business Review Vol 7, No 2 (2012)
Publisher : Institute for Research and Community Empowerment (LPPM TAZKIA)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30993/tifbr.v7i2.10

Abstract

Objective – Islamic Banking is closely related to the real sector. Then, its operation should reflect the real sector which is expected to contribute to the sustainable economic growth. Nevertheless, Islamic banks are still benchmarking the price of their products (profit sharing and sales) on interest rate. This is as an implication of the implementation of the dual banking system. Moreover, the small portion of Islamic banking compared to the total national banks causes the competitiveness of Islamic banking product in terms of pricing has a high correlation with the interest rate of conventional counterpart. This phenomenon indicates the need to find.Method – This research employed library research method since this paper relies on secondary data by thoroughly reviewing the most relevant literature. The paper attempt to propose a pricing indicator which is based on the real sector activities as the root of Islamic banking operations.Result – Theoretically, this indicator can reflect the real rate of return of every industry sector. In addition, it can help Bank Indonesia to monitor the real sector performance and analyze the possible gap between real sector activities and financial sector. Furthermore, when the benchmark of real rate of real sector return is available, the return index of Islamic banking reflecting the profit sharing performance of the whole Islamic banking industry can be formulated. This concept is different with other indexes which are corresponding to the price of financial assets.Conclusion – In general, return index of real sector as a reference for Islamic banking product pricing is expected to define the way of non-interest return analysis, to calculate the non-interest return of selected sectors that becomes the focus of analysis using Cash Recovery Rates (CRR), forming an index of industry by sector in the second stage, by doing a certain weighting of those companies, to analyze the relationship between macro factors and CRR by sector and to forecast. Modeling the Demand for Family and General Takaful in Malaysia (A Comparative Study): ARDL Approach to CointegrationObjective- Nowadays, numerous studies focus on the determinant of the demand for takaful, either family or general takaful in Malaysia. In this respect, these studies employ economic and socio-demographic variables to examine the determinants of takaful. They found that income, interest rates, financial development, pensions, stocks, price of insurance, life expectancy, dependency ratio, education, and age have positive on determinants of takaful. However, previous tudies have found that inflation, savings, and unemployment rate have negative relationship with the determinant of takaful in Malaysia. This study attempts to examine the determinants of the demand for family takaful and general takaful for comparative study in Malaysia for the period of 1988 to 2010. It employs economic and socio-demographic variables to measure these determinants.Methods-Using time series data, this study applies the Autoregressive Distributive Lag (ARDL) approach to cointegration to examine the determinants of the demand for family takaful and general takaful in the short and long run.Result-The findings indicate that the economic and socio-demographic variables such as income, and education have positive relationship with the demand for family takaful in the short run, but not in the long run.Conclusion-Meanwhile, it also indicates that income and education have no relationship with demand for general takaful in Malaysia in the short run and long run. It indicates that if there is an increase in income, people tend to buy more family takaful of STMB. At the same time, the educated people already aware of the takaful products, they may necessarily purchase family takaful than life insurance. Objective – The objective of this paper is to analyze the profit distribution method applied in Islamic banks in Indonesia and to propose better method in order to improve sharia risk compliance.Methods – Employing a descriptive quantitative method and literature review. This paper evaluate weaknesses of the current profit distribution method and proposes daily revenue index to solve the problems arising from using current method which is unfairness between bank and customers.Results – By the two current profit distribution methods which use monthly revenue index calculated only at the end of the month, there are potential injustices occur. Therefore, instead of using monthly index, daily index is proposed. There are two steps in calculating profit distribution by using daily revenue index: (1) Accumulating Source of Fund (SoF), Reserve Requirement (RR), and Source of Fund after Reserve Requirement (SoFaRR), and (2) Determining Average Financing (AF), Revenue Index (RI), Cost Index (CI), Revenue Sharing Index (RSI), and Profit Sharing Index (PSI).Conclusion - Daily revenue index will solve the unfairness problems arise from current profit distribution method applied in Islamic banks. Daily revenue index is also applicable if Islamic banks apply profit and loss sharing instead of revenue sharing. Objective – This study will try to describe inclusive asset building (further abbreviated as IAB ) concept which proposed by Michael Sherreden and it’s implementation as the main agenda of ZIS institutions activities. Anti-poverty proposals from various parties include government agencies, private and public, generally focusing on income subsidy policy to encourage public demand over the minimum edge (borderline poverty) of live well.Method - Library research is applied since this paper relies on secondary data by thoroughly reviewing the most relevant literature. This will be elaborated starting from the introduction of mechanisms and IAB programs in the main activities of ZIS institutions. In addition, several prerequisites adjustments and strengthening either in terms of institutional, organizational capacity and management needs to be conducted by the ZIS institutions so that this study will achieve as expected.Results -.Combination of income support with the asset accumulation such as subsidise saving for the poor will be more long-term. Which is expected to help out the poor from socio-economic alienation. Through the implementation of this concept, ZIS institutions have a chance to heighten the leverage of their role in poverty alleviation.Conclution – All resources, either internal and external that have been built by LAZ during these days, is a valuable capital to initiate the paradigm shift. Also, the benefits of institutional characteristics and closely relationship with the clients (mustahik) could be additional notes. Objective – Islamic finance has been established as an alternative to the conventional banking system which is made up component not permitted under Shariah. Tawarruq is one of the Islamic finance products which commonly used in Islamic banks. This research assesses two important areas which include the principle of Tawarruq in Fiqh perspective and the practical aspect of such principle in Islamic banks in Malaysia.Method – The method used for this research is comparative analysis.Result – This research begins to explore the different views of the proponent and opponents toward the legality of Tawarruq in Fiqh . Instead of considering the basic condition of the valid sale, the other aspect has to be pondered by the contemporary scholars to render Tawarruq is valid sale according to Shariah. The legality of Tawarruq has been debate by some scholars. Due to that, there are different resolution and rulings from Islamic countries on legality of of Tawarruq . In the practical aspect, Tawarruq has been used in Malaysia by Bursa Malaysia Suq Al Sila' as a trading platform and it uses Crude Palm Oil (CPO) as the commodity in Tawarruq transaction. While, in the Middle East, it uses London Metal Exchange (LME) in dealing with commodity transaction through Tawarruq principle.Conclusion – Based on the legal argument on the permissibility of Tawarruq , it can be summarized that Tawarruq is permissible but subject to certain condition. Provided that genuine Tawarruq is permissible than organized Tawarruq in Tawarruq transaction.Keywords: Tawarruq, Murabahah Objective – This research aimed to analyze zakat calculation practices from online providers. There are some differences in the calculation method, for example different treatment in zakatable deduction, types of income and zakat for business.Methods - Twenty-three zakat online calculators are analyzed and then grouped into a main category. A simulation model is employed by inputting several common assumptions.Results - The results showed that generally three zakat calculator become main providers and differences are still occur.Conclusion – This research showed that the calculation of zakat should be simpler, standardized, and may not cause double zakat counting for profession-zakat. Government should intervene to provide a single zakat calculation method that must be refereed by all zakat institutions and link it to tax system.Keywords: Zakat, accounting, calculation, online Objective – The objective of this paper is to provide a discussion whether Islamic securities enjoy larger demands than conventional securities. This paper also investigate whether regulator could effectively take a role in materializing demands for Islamic securities and whether regulator declaration is more convincing than sharia compliance declaration by another institution.Methods - We employ differences in differences (DID) regression to see the immediate, medium, and long term market response to this announcement. We also estimate cumulative abnormal returns by employing the standard market model for the robustness test.Results - We find that market reacts to sharia compliance declaration by regulator in the long-run, hence potential demands are realized and the Islamic securities will enjoy greater market power. We also provide evidence that Islamic investors are not too strict in screening Islamic securities and are willing to accept different opinions regarding sharia compliance.Conclusion - This finding could explain why Islamic finance is still growing rapidly even though there are critiques in the genuineness of sharia compliance of the current Islamic financial products/services.Keywords: Regulator, Islamic securities, sharia compliance, demand, investor confidence 7-2-2012Objective- The main objective of this study is to estimate the Willingness to Pay of the Muslim households to contribute cash waqf as a strategy towards wealth management in Sri Lanka. Waqf is holding or confinement which is emphasised in Islam as ibadah as it can distribute the wealth among the Muslim society and would help to develop the Islamic vision of brotherhood.Method- Contingent valuation method is used to estimate the Willingness to Pay of Muslim households to improve socio-economic status of the low income people through waqf wealth management in Sri Lanka. This study is developed based on Random Utility Theory.Result- This paper identifies the appropriate methods to estimate the willingness to pay of Muslim households in Sri Lanka for waqf (awqaf is plural) institutions. Such evaluations are crucial for the Islamic financial system to function effectively in order to achieve the dignified objectives of socio-economic justice through proper distribution of wealth.Conclusion-This paper presents a conceptual model of waqf institutions which would be useful for further empirical research in this area. The findings are not only appropriate and applicable to Sri Lanka but also to other Muslim and non-Muslim countries. This is a unique contribution to the Islamic economic literature. The knowledge obtained from this study hopes to propose cash waqf to manage the wealth in order to improve the socio-economic status of low income people in Sri Lanka.Tujuan - Tujuan utama dari penelitian ini adalah untuk memperkirakan Kemauan Membayar rumah tangga Muslim untuk berkontribusi wakaf tunai sebagai strategi menuju pengelolaan kekayaan di Sri Lanka. Wakaf secara bahasa menahan (harta) yang ditekankan dalam Islam sebagai ibadah karena dapat mendistribusikan kekayaan di antara masyarakat Muslim dan akan membantu untuk mengembangkan visi Islam yaitu persaudaraan.Metode - Metode penilaian Kontingensi digunakan untuk memperkirakan Kesediaan membayar rumah tangga Muslim dalam meningkatkan status sosial - ekonomi masyarakat berpenghasilan rendah melalui pengelolaan kekayaan wakaf di Sri Lanka. Penelitian ini dikembangkan berdasarkan Teori Utilitas Acak.Hasil - Paper ini mengidentifikasi metode yang tepat untuk memperkirakan kemauan membayar rumah tangga Muslim di Sri Lanka untuk wakaf lembaga. Evaluasi tersebut sangat penting untuksistem keuangan Islam yang berfungsi secara efektif dalam rangka mencapai tujuan yang bermartabat keadilan sosial - ekonomi melalui distribusi kekayaan yang tepat.Kesimpulan - Paper ini menyajikan model konseptual lembaga wakaf yang akan berguna untuk penelitian empiris lebih lanjut di daerah ini. Temuan ini tidak hanya tepat dan berlaku untuk Sri Lanka, tetapi juga ke negara-negara Muslim dan non -Muslim lainnya. Ini adalah kontribusi yang unik untuk literatur ekonomi Islam. Pengetahuan yang diperoleh dari studi ini adalah mengharapkan agar wakaf tunai diusulkan untuk mengelola kekayaan dalam rangka meningkatkan status sosial - ekonomi masyarakat berpenghasilan rendah di Sri Lanka.Keywords: Awqaf, Contingent Valuation Method, Utility Theory, Willingness to Pay, Welfare Changes Objective – The purpose of this research is to analyze correlated factors related to social reporting by Islamic banks in Indonesia. According to the accounting standard in Indonesia, Islamic banks are legally required to report on social aspects. Social reporting is regulated in Indonesia under the accounting standard for Islamic Financial Institutions No. 1. Islamic banks must present social reporting in a standardized format.Methods-The present research methodology analyzes financial reports from Islamic banks between 2006 and 2011. It also analyzes correlated factors based on supporting variables.Results- This research reveals that asset, debt, net income and temporary investment have the highest correlation to social reports by Islamic banks in Indonesia. In addition, older, full-fledged Islamic banks have different characteristics compared to new, full-fledged banks in terms of charity, fines, non-halal funds, and other fund correlations.Conclusion- This research shows that the bigger the bank the bigger social reporting given. In addition, better zakat management is shown by new Islamic bank full fledged group as adaptations in the standard.Keywords: social, report, accounting, Islamic bank
Detecting The Expected Rate of Return Volatility of Financing Instruments of Indonesian Islamic Banking through GARCH Modeling (Generalized Autoregressive Conditional Heteroscedasticity) Huda, Nurul; Barata, Amrin
Tazkia Islamic Finance and Business Review Vol 9, No 1 (2015)
Publisher : Institute for Research and Community Empowerment (LPPM TAZKIA)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30993/tifbr.v9i1.78

Abstract

Objective - Islamic banks are banks which its activities, both fund raising and funds distribution are on the basis of Islamic principles, namely buying and selling and profit sharing. Islamic banking is aimed at supporting the implementation of national development in order to improve justice, togetherness, and equitable distribution of welfare. In pursuit of supporting the implementation of national development, Islamic banking often faced stability problems of financing instruments being operated. In this case, it is measured by the gap between the actual rate of return and the expected rate of return. The individual actual RoR of this instrument will generate an expected rate of return. This raises the gap or difference between the actual rate of return and the expected rate of return of individual instruments, which in this case is called the abnormal rate of return. The stability of abnormal rate of return of individual instruments is certainly influenced by the stability of the expected rate of return. Expected rate of return has a volatility or fluctuation levels for each financing instrument. It is also a key element or material basis for the establishment of a variance of individual instruments. Variance in this case indicates the level of uncertainty of the rate of return. Individual variance is the origin of the instrument base for variance in the portfolio finance that further a portfolio analysis. So, this paper is going to analyze the level of expected RoR volatility as an initial step to see and predict the stability of the fluctuations in the rate of return of Indonesian Islamic financing instruments.Methods – Probability of Occurence, Expected Rate of Return (RoR) and GARCH (Generalized Autoregressive Conditional Heteroscedasticity).Results - The expected RoR volatility of the murabaha and istishna financing instruments tend to be more volatile than expected RoR volatility of musharaka and qardh financing instruments.Conclusions – The uncertainity of Musharaka and qardh financing instruments tend to be more stable than other Islamic financing instruments. 
ZIS Institutions and Inclusive Asset-building Policy Agenda Hendri, Davy
Tazkia Islamic Finance and Business Review Vol 7, No 1 (2012)
Publisher : Institute for Research and Community Empowerment (LPPM TAZKIA)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.30993/tifbr.v7i1.5

Abstract

Objective – This study will try to describe inclusive asset building (further abbreviated as IAB ) concept which proposed by Michael Sherreden and it’s implementation as the main agenda of ZIS institutions activities. Anti-poverty proposals from various parties include government agencies, private and public, generally focusing on income subsidy policy to encourage public demand over the minimum edge (borderline poverty) of live well.Method - Library research is applied since this paper relies on secondary data by thoroughly reviewing the most relevant literature. This will be elaborated starting from the introduction of mechanisms and IAB programs in the main activities of ZIS institutions. In addition, several prerequisites adjustments and strengthening either in terms of institutional, organizational capacity and management needs to be conducted by the ZIS institutions so that this study will achieve as expected.Results -.Combination of income support with the asset accumulation such as subsidise saving for the poor will be more long-term. Which is expected to help out the poor from socio-economic alienation. Through the implementation of this concept, ZIS institutions have a chance to heighten the leverage of their role in poverty alleviation.Conclution – All resources, either internal and external that have been built by LAZ during these days, is a valuable capital to initiate the paradigm shift. Also, the benefits of institutional characteristics and closely relationship with the clients (mustahik) could be additional notes.Keywords: Poverty, Income Subsidy, Inclusive Asset

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