The study attempts to ascertain the determinants of nonperforming loans in National Bank of Commerce. Data was collected from 152 respondents. Tables, percentages, mean and standard deviation were used to analyze data. Data collection methods adopted for the study were interview, questionnaire and documentary evidence. Interest rate, GDP, concentration of lending activities, bank’s loan supervision capacity and economic condition were investigated, and the results suggest that interest rate, GDP, bank’s loan supervision capacity and economic condition influence the level of NPLs. However, the results did not suggest that concentration of lending activities increase the level of NPLs. The study suggests that banks should put in place a vibrant credit process that ensures proper customer selection and risk identification, robust credit analysis, proactive monitoring and clear recovery strategies for bad loans, formulate clear policy framework that addresses issues of ethical standards and check and balance credit process, organizational capacity enhancement of banks, deliberate effort to develop credit culture for managing loans ,and ensure prudent policies that govern bank loans. Since the results for this study were encouraging, the researcher encourages replicating the study for other lending institutions. In order to extend the literature on non-performing loans, the researcher suggested incorporating models of Golem effect, Social loafing, Inverted pyramid effect, Pollyanna effect and High default culture effect. Also, basing on the merits of the study, the researcher suggests determining relationship between non-performing loans and loan size, collateral, credit culture, and credit management information system.
Entrepreneurs is important bringing advancements of a country's economy, yet entrepreneurs are created not born. Previous researches acknowledged that entrepreneurship activities were intentional based and having strong relationship with individual's values or culture. As for Moslem, the inherent individual culture, is in form of Islamic Work Ethics, which should support entrepreneurship. This objective of this study is to reveal the role of Islamic Work Ethics in influencing entrepreneurial intention of Indonesian under graduate students. The study is much relevant, since the students are the candidates of entrepreneurs in the future. Upon using Structural Equation Modelling, the study finds strong relationship between all variables. The discussion of finding, as well as future research direction is provided.
This study aims to compare health levels of Islamic Commercial Banks and Conventional Commercial Banks in Indonesia using descriptive methods. This study uses a measure of Risk Profile, Good Corporate Governance, Earning And Capital (RGEC), where the Risk Profile is measured using the NPL / NPF and LDR ratios, Good Corporate Governance uses the self-assessment results reported in the FSA, Earning uses the ROA ratio and Capital Using the CAR ratio. The comparison results show differences in the soundness of the Sharia Commercial Banks with Conventional Commercial Banks, which generally indicate that the soundness of Sharia Commercial Banks is healthier.
This study examines the influence of interest on the development of BMT UGT Sidogiri Jakarta Branch by using TPB (Theory of Planned Behavior) as the theoretical basis and using PLS (Partial Lease Square) as a tool to measure interest. BMT UGT stands for Baitul Mal wa Tamwil and the Integrated Joint Venture. These two things are part of the name for BMT which was founded by alumni of the Sidogiri Islamic boarding school. This study aims to examine how interest can influence the development of BMT UGT Sidogiri Jakarta Branch. Seeing that more and more people are aware of the prohibition of usury and BMT Sidogiri as one of the financial institutions based on sharia principles and free from usury. In this study, Theory of panned behavior is used as a theoretical basis to see the influence of attitudes, subjective norms and behavioral control on members' interests, so that it is from the interests of members that it can be seen how the development of BMT UGT Sidogiri Jakarta Branch. The results of the analysis show that subjective norms have the most positive and significant influence on the development of BMT UGT Sidogiri Jakarta Branch. Subjective norms are the most influential variable on members' interests because external and internal pressures will greatly influence members' behavior. Keywords: BMT development, Theory of Planned Behavior, Member interests.
This study aimed to develop an alternative measurement model based on the stakeholder theory that answers the critiques toward the Balance Score Card (BSC). It synthesized variables from previous studies, including Job Satisfaction (JSA), Business Process (BPR), Customer Satisfaction (CSA), and Financial Performance (FPE). Moreover, the study set nine hypotheses representing the relationship between JSA, BPR, CSA, and FPE. The hypotheses were accepted after the Structural Equation Modelling (SEM) analysis of the financial data of the four biggest Indonesian Islamic banks and responses from 200 respondents. This finding confirmed the robustness of the model proposed in this study. The model denotes that the FPE results from the excellent implementation of JSA, BPR, CSA, and the interaction between these variables, which directly impact financial performance.
The Badan Amil Zakat Nasional (Baznas) is the Indonesia organization of zakat management (OPZ) needs to measure the effectiveness of their programs that have been implemented in alleviating zakat beneficiaries (mustahik) from poverty. In Indonesia, Cibest model is the most popular measurement tools that try to find material value and spiritual value in determine the effectiveness of Baznas’s zakat program. However, the Cibest method has shortcomings, namely in the measurement of spiritual value which only emphasizes on the religiosity aspect. This study proposes an improved measurement of spiritual value using the concept of Islamic spirituality and tries to implement it in Baznas of Berau Regency, East Kalimantan Province of Indonesia. Measurements were taken on a sample of 60 mustahik who had experienced the economic empowerment program. The measurement results show that, the condition of mustahik after the program show improvement in material and spiritual values. However, the validation using the wilcoxon signed rank test reflected that only spiritual value that apply the concept of Islamic spirituality showed significant difference. A discussion of the phenomenon is presented on the last part of this study.
Islamic work ethics of Muslim employees is substantial, as many previous studies show its role in the sound performance of the employees. This study aims to propose the measurement model of Islamic work ethics for Muslim employees in the banking industry. This study identifies eight dimensions of Islamic work ethics upon intensive literature review: religiousness, collectivity, equality, effort, quality, work obligation, competition, and advantage. Based on these dimensions and through certain systematic stages, this study develops a measurement consisting of 47 items. The contribution of this study is to provide a more suitable measurement that can be used by following empirical research to assess the profile of Islamic work ethics for Muslim employees, both for Islamic banking and conventional banking.
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