nep-isf New Economics Papers
on Islamic Finance
Issue of 2022‒05‒02
twelve papers chosen by

  1. Gambaran Umum Perbankan Syariah di Indonesia By Arief, A. Anggie Zabrina
  2. External Shariah Audit Services from Practitioners' Views: The Case of Malaysian Islamic Banks By M R Yasoa
  3. KOPERASI DAN UMKM By khasanah, uswatun
  4. Zakat and Poverty Alleviation in Nigeria: an analytico-longitudinal study By (*) Abdullahi, Shafiu Ibrahim; (**) Shuaibu, Mukhtar; (***) Yusufu, Mustapha
  5. Latar Belakang Koperasi Syariah dan UMKM By Arief, A. Anggie Zabrina
  6. Antecedents of Wedding Expenditure Management: A Document Analysis By Aiman Izuddin Mohd Affandy
  7. The Effect of Liquidity Risk Management on Financial Performance of Commercial Banks in Pakistan By Alim, Wajid; Ali, Amjad; Metla, Mahwish Rauf
  8. Cameroon: Selected Issues By International Monetary Fund
  9. The impact of ETF index inclusion on stock prices By Duffy, John; Friedman, Dan; Rabanal, Jean Paul; Rud, Olga
  11. Resume Pengantar Ekonomi Makro Syariah By Rasyid, Andi Syahrul Ramadhan
  12. Partisan external borrowing in middle-income countries By Cormier, Ben

  1. By: Arief, A. Anggie Zabrina
    Abstract: The first Islamic bank appeared in Indonesia in 1992 with the establishment of Bank Muamalat Indonesia, in response to the public's request for the presence of a financial transaction service that was carried out in line with the moral values and principles of Islamic Sharia. The rapid development of Islamic banks has only been felt since the Government and Bank Indonesia made a major commitment and took various policies to develop Islamic banks seriously, especially since the amendment of the banking law with Law no. 10 of 1998. These various policies are not only concerned with expanding the number of offices and operations of Islamic banks to improve the supply side, but also developing public understanding and awareness to increase the demand side. The rapid development has been especially recorded since the issuance of a Bank Indonesia regulation that gave permission to conventional banks to establish a sharia business unit (UUS). Keywords: Islamic Bank, development of Islamic Banking
    Date: 2022–03–31
  2. By: M R Yasoa (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Pengkalan Chepa Kota Bharu, Kelantan, Malaysia Author-2-Name: S F Muhamad Author-2-Workplace-Name: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Pengkalan Chepa Kota Bharu, Kelantan, Malaysia Author-3-Name: T Abdullah Author-3-Workplace-Name: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Pengkalan Chepa Kota Bharu, Kelantan, Malaysia Author-4-Name: M N H Yusoff Author-4-Workplace-Name: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Pengkalan Chepa Kota Bharu, Kelantan, Malaysia Author-5-Name: N M Said Author-5-Workplace-Name: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Pengkalan Chepa Kota Bharu, Kelantan, Malaysia Author-6-Name: S A Zainuddin Author-6-Workplace-Name: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Pengkalan Chepa Kota Bharu, Kelantan, Malaysia Author-7-Name: N A M Nasir Author-7-Workplace-Name: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, City Campus, 16100 Pengkalan Chepa Kota Bharu, Kelantan, Malaysia Author-8-Name: Author-8-Workplace-Name:)
    Abstract: "Objective - This paper investigates the possibility and feasibility of Malaysia's Islamic banking industry hiring external Shariah audit (ESA) services in the audit fraternity as one of the Shariah governance mechanisms. Some of the scholars argued that ESA is more independent and is able to strengthen the existing Shariah compliance in the industry. Methodology – This study employs a qualitative method by utilising semi-structured interviews with nine key industry players: Shariah auditors, Heads of Shariah audit, Shariah Committee (SC) Member, and Chief Shariah Officer. Data gathered from the interviews was transcribed and analysed using Atlas.ti software. Findings – A series of interviews reveal that given the current practices by the Islamic banking industry, it could be inferred that the Malaysian Islamic banking industry is not ready to exercise the ESA practices. This unreadiness is due to several factors, such as ESA costs outweighing its benefits, the fear of reputational risk, and anxiety of leaking confidential information to rivals. Novelty – The Shariah audit research especially relates to external Shariah audit is considered limited. Type of Paper - Empirical"
    Keywords: External Shariah audit; Islamic Banks; qualitative method; Shariah governance; Malaysia
    JEL: E44 G10 G20
    Date: 2021–12–31
  3. By: khasanah, uswatun
    Abstract: koperasi syariahh adalah jenis koperasi yang mensejahterakan ekonomi para anggotanya sesuai norma dan moral Islam dan berguna untuk menciptakan persaudaraan dan keadilan yang sesuai dengan prinsip-prinsip Islam. UMKM juga memiliki fungsi untuk mendorong kondisi ekonomi menjadi rata. Bahkan perekonomian di pedesaan juga bisa meningkat, dengan adanya bantuan dari UMKM ini. Setiap orang bisa menjual berbagai macam produk, di rumah maupun di sekitar rumah, tanpa harus pergi keluar kota untuk menjual produknya. Kata kunci: Koperasi syariah, Fungsi UMKM Sharia cooperative is a type of cooperative that provides economic prosperity for its members according to Islamic norms and morals and is useful for creating brotherhood and justice in accordance with Islamic principles. MSMEs also have a function to encourage economic conditions to become even. Even the economy in rural areas can also improve, with the help of this MSME. Everyone can sell various kinds of products, at home or around the house, without having to go out of town to sell their products.
    Date: 2022–03–12
  4. By: (*) Abdullahi, Shafiu Ibrahim; (**) Shuaibu, Mukhtar; (***) Yusufu, Mustapha
    Abstract: The issue of managing Zakat programs in Nigeria has remained a very serious topic looking at the potential of the sector and its present deplorable condition. Unlike in some Muslim countries where the central government organized the collection and distribution of Zakat, in Nigeria because of the multi-religious composition of the country, that important task is left to various state governments and private Islamic organisations; and in most cases, the very burden of distributing Zakat is left to the individual Zakat payers to find the needy themselves who they will give their Zakat to. This research relied on secondary sources and is an analytical study. It proposes ways through which the management of Zakat shall be improved in Nigeria by reviewing existing literature in the field as well as the practice of Zakat institutions around the world.
    Keywords: Zakah, Poverty, Islamic Economics, Street-Begging, Nigeria
    JEL: O1 P4 Z12
    Date: 2022–03–23
  5. By: Arief, A. Anggie Zabrina
    Abstract: Sharia cooperative is one of the non-governmental groups that aims as a people's economic institution to develop productive and investment businesses and improve living standards based on sharia principles. In the rapid development of Islamic cooperatives, Islamic cooperatives still have many obstacles in their development, both from internal and external sides. Meanwhile, MSME is a business or business whose actors are individuals, groups, or business entities. The classification in MSMEs is divided depending on the income or assets owned each year. Empowerment of micro, small and medium enterprises (MSMEs) and sharia cooperatives is a strategic step in improving and strengthening the basic economic life of the majority of the Indonesian people, particularly through providing employment opportunities and reducing inequality and poverty levels through sharia principles.
    Date: 2022–03–12
  6. By: Aiman Izuddin Mohd Affandy (Universiti Sultan Zainal Abidin, Gong Badak Campus, 21060, Terengganu, Malaysia Author-2-Name: Syh Noorul Madihah Syed Husin Author-2-Workplace-Name: Universiti Sultan Zainal Abidin, Gong Badak Campus, 21060, Terengganu, Malaysia Author-3-Name: Normadiah Daud Author-3-Workplace-Name: Universiti Sultan Zainal Abidin, Gong Badak Campus, 21060, Terengganu, Malaysia Author-4-Name: Tengku Fatimah Muliana Tengku Muda Author-4-Workplace-Name: Universiti Sultan Zainal Abidin, Gong Badak Campus, 21060, Terengganu, Malaysia Author-5-Name: Zurita Mohd Yusoff Author-5-Workplace-Name: Universiti Sultan Zainal Abidin, Gong Badak Campus, 21060, Terengganu, Malaysia Author-6-Name: Siti Khatijah Ismail Author-6-Workplace-Name: Universiti Sultan Zainal Abidin, Gong Badak Campus, 21060, Terengganu, Malaysia Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: " Objective - This paper seeks to unravel the element of wedding expenditure in Islam and to present the concept of wedding expenditure management that is encouraged by Islamic law. Methodology/Technique - This qualitative study employs document analysis methods through data collection from scholarly writings in the field of family management. Data will be analysed based on content analysis methods and presented in an organised manner through thematic methods. Finding - This study found two important features outlined by Islam in managing the early preparations of weddings; and three concepts of spending for the purpose of wedding preparation. Previous research has concentrated on the reality of Malay society's marriage spending behaviour. Previous research has demonstrated the necessity for a guideline to lessen the financial load that today's youths endure. Novelty - This study presents the Malay Muslim community with a better and effective management of wedding expenditure as encouraged by Islam. The notion of wedding expenditure management promulgated by Islam is a structured expenditure approach that may be applied by all communities, particularly the Malays, who have a variety of traditions and cultures that involve a variety of expenditure requirements. Type of Paper - Review"
    Keywords: Wedding Expenditure; Wedding Expenses; Wedding Management
    JEL: D69 H53 J12
    Date: 2022–03–31
  7. By: Alim, Wajid; Ali, Amjad; Metla, Mahwish Rauf
    Abstract: The study tests the effect of liquidity risk management on the financial performance of commercial banks in Pakistan. Pakistani financial market is heavily dependent on its banking sector to achieve its financial goals and stability. Therefore, the banking sector’s performance has a significant effect on the overall economy of the country. To achieve its need for stability, the central bank of Pakistan ensures that banks maintain an optimum liquidity position to reap the most benefits and increase returns. In this study, the effect of liquidity risk management on financial performance is studied using panel data for Ordinary Least Square analysis. Financial data of all commercial banks operating in Pakistan during the period of study was taken from the year 2006 to 2019 using data archives of the State Bank of Pakistan website. It is concluded that higher liquidity increases banks’ performance in commercial banks of Pakistan. The results are in line with several studies and available literature. This study can become a good reference for future policy decisions regarding the minimum liquidity requirements of banks in this region. This study can be further enhanced using a longer period of study and include more variables specific to the banking sector in Pakistan, like bank size, age of bank, etc. Further studies may include other non-commercial banks to further strengthen the study and increase its reliability.
    Keywords: Liquidity Risk; Performance; Banking Sector; ROA; ROE; Pakistan
    JEL: G21 G33
    Date: 2021
  8. By: International Monetary Fund
    Abstract: Selected Issues
    Keywords: model calibration; soes subsidization; digital money in Cameroon; micro-finance development; micro-finance institution; Financial inclusion; Mobile banking; Financial sector development; Digital currencies; Microfinance; Sub-Saharan Africa; Global
    Date: 2022–03–11
  9. By: Duffy, John (University of California, Irvine); Friedman, Dan (University of California, Santa Cruz); Rabanal, Jean Paul (University of Stavanger); Rud, Olga (University of Stavanger)
    Abstract: A growing body of evidence suggests that assets included in market indexes such as the S&P 500 trade at a premium relative to other assets. In this paper we look for evidence of such an index inclusion premium in a carefully controlled laboratory experiment. Our environment involves three assets and an Exchange Traded Fund (ETF) index asset. We model Authorized Participants (APs) as bots that create and redeem ETF shares by scanning the order books of the underlying assets. In one treatment, all three assets are included in the ETF index asset. In a second treatment, one of the three assets is excluded from the ETF index and is replaced by a second unit of one of the included assets; the included and excluded assets have identical fundamental values enabling a clean test of whether or not there exists an index inclusion premium. We consider a further variant of the excluded asset treatment where short-selling is allowed. We find that: (i) inclusion of an asset in the ETF index results in a substantial index premium, (ii) this result is tied to an order imbalance which arises when an identical asset is excluded from the index, and (iii) the premium and order imbalance persist even if short-selling is allowed.
    Keywords: Index Inclusion; ETF; Experimental Finance
    JEL: G10 G20
    Date: 2022–03–22
  10. By: Haya, Nur Anni
    Abstract: Bank Syariah pada awalnya dikembangkan sebagai suatu respon dari kelompok ekonomi dan praktisi perbankan muslim yang berupaya mengakomodasi desakan dari berbagai pihak yang menginginkan agar tersedia jasa transaksi keuagnan yang dilaksanakan sejalan dengan nilai moral dan prinsip-prinsip syariah Islam. Umat Islam diharapkan dapat memahami perkembangan bank syariah dan mengembangkannya apabila dalam posisi sebagai pengelola bank syariah yang perlu secara cermat mengenali dan mengidentifikasi semua mitra kerja yang sudah ada maupun yang potensial untuk pengembangan bank syariah. Bank Syariah pada dasarnya memiliki potensi dan peluang yang luar biasa besar. Pertumbuhan dari segi aset pun sudah membuktikan bahwa Bank Syariah merupakan model bank yang sangat ideal untuk mendorong kemajuan perekonomian Negara. Namun dari segi kualitas pelayanan Bank Syariah harus mengejar ketinggalannya dari Bank Konvensional yang telah lebih awal berdiri
    Date: 2022–03–31
  11. By: Rasyid, Andi Syahrul Ramadhan
    Abstract: Makro ekonomi menjelaskan perubahan ekonomi yang mempengaruhi banyak rumah tangga (household), perusahaan, dan pasar. Ekonomi makro dapat digunakan untuk menganalisis cara terbaik untuk mempengaruhi target-target kebijaksanaan seperti pertumbuhan ekonomi, stabilitas harga, tenaga kerja dan pencapaian keseimbangan neraca yang berkesinambungan. Ilmu ekonomi makro mempelajari variabel-variabel ekonomi secara agregat (keseluruhan). Variabel-variabel tersebut antara lain: pendapatan nasional, kesempatan kerja dan atau pengangguran, jumlah uang beredar, laju inflasi, pertumbuhan ekonomi, maupun neraca pembayaran internasional. Ekonomi Makro mempelajari mekanisme bekerjanya perekonomian secara keseluruhan.
    Date: 2022–03–21
  12. By: Cormier, Ben
    Abstract: Why do middle-income country governments use costlier sovereign debt markets when cheaper finance is available from official creditors? This research note argues that left-leaning governments with labor and the poor as core constituencies are likely to prioritize markets in their annual foreign borrowings. This is because markets provide an exit option from official creditor conditions that have disproportionately negative effects on working classes. This finding puts limits on disciplinary assumptions that left-leaning governments should have relatively less access to sovereign debt markets and thus use them less. Instead, left-leaning middle-income countries are likely to use proportionally more market finance as they fulfill annual foreign borrowing needs. This, in turn, shapes which middle-income countries are likely to become relatively more exposed to global debt market costs and pressures as they accumulate external debt over time.
    Keywords: borrower autonomy; external borrowing; partisanship; public debt accumulation; sovereign debt
    JEL: E6
    Date: 2022–02–07

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