Analysis of Factors Affecting on Saving Intention in Islamic Bank: The Case in Indonesia

Hariyanto, Hariyanto; Nafi'ah, Bariyyatin

doi:10.29040/jiei.v8i1.4308

Cited by 6 publications

(7 citation statements)

References 19 publications

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“…Attitudes, subjective norms and perceived behavior control influence consumers' intention to adopt Islamic banking services. In the same context, Hariyanto and Nafi'ah (2022) found that religiosity does not affect the saving intention of Muslim communities, while service quality has a significant impact on the saving intention of the Muslim communities in East Java Indonesia. In another Indonesian study, Usman et al (2017) Adoption of Islamic finance products reported that religiosity affects the decisions of Indonesian customers in the traditional group (consisting of Islamic bank customers), but it does not have any effect on banking choice decisions for the contemporary group (consisting of customers of conventional banks).…”

Section: Empirical Literature Reviewmentioning

confidence: 91%

What determines the adoption of Islamic finance products in a non-Islamic country? Empirical evidence from Cameroonian small- and medium-sized enterprises

Haruna,

Oumbé,

Kountchou

2024

JIMA

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Purpose The purpose of this paper is to examine the adoption of Islamic finance products (murabaha, musharakah, mudarabah, salam, ijara, istisna and Qard Hassan) by small and medium-sized enterprises (SMEs) in Cameroon, a non-Islamic Sub-Saharan African country. Design/methodology/approach It used primary data collected from a cross-section of 1,358 SMEs in eight regions of Cameroon using self-administered structured questionnaires. To facilitate the analyses and interpretation, these products are grouped into four groups based on certain characteristics. A multivariate probit model is estimated to take into account the interaction between these different Islamic finance products. Findings This study revealed that the desire to comply with Sharia law, awareness, attitude and intention were critical determinants of the decision to adopt Islamic finance products by Cameroonian SMEs. The least influential factors were perceived behavioral control, subjective norms, enterprise characteristics (size, age and location) and socio-demographic characteristics of the entrepreneur (gender, age and marital status). The extension of the multivariate approach permitted us to compute for predicted probabilities which revealed that there exists a synergy effect between the different Islamic finance products. That is, Cameroonian SMEs combine different Islamic finance products at the same time based on their needs. This is especially the case between the partnership-based products (musharakah and mudarabah) and manufacture/rent products (istisna and ijara). Practical implications Policymakers are encouraged to develop stakeholder-oriented strategies to promote effective consumer education in Islamic finance products which will boost awareness. Also, Islamic finance institutions should endeavor to develop innovative financial products that are Sharia-compliant and economically beneficial to the individual and business needs of SMEs. Moreover, policymakers and management of Islamic finance institutions should ensure the putting in place of effective governance structures to guide Islamic finance operations. Finally, policymakers should endeavor to take into account the possible synergy between the different Islamic finance products in their quest to develop this activity. Originality/value To the best of the authors’ knowledge, this is the first study that analyses the adoption of different Islamic finance products while taking into account the possible synergy that exists between these products.

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Section: Empirical Literature Reviewmentioning

confidence: 91%

What determines the adoption of Islamic finance products in a non-Islamic country? Empirical evidence from Cameroonian small- and medium-sized enterprises

Haruna,

Oumbé,

Kountchou

2024

JIMA

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“…However, it is worth noting that estimates also suggest that variables such as Islamic Meezan Bank's reputation and management style are significant to these clients. Amin (2008); Hariyanto et al (2022) examined the relationship between customer loyalty to Islamic Meezan Bank Ltd. in Pakistan and its management effectiveness. The investigation showed that the majority of transactions with Islamic Meezan Bank were satisfied with the overall level of assistance provided by these institutions.…”

Section: Literature Reviewmentioning

confidence: 99%

In Pakistan, the Choice of Requirements for Islamic Easy House Financing by Meezan Bank

Muhammad Saeed Iqbal,

Sofi Mohd Fikri

2024

IJMRES

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Islamic Easy House Financing (IEHF) increased from RS. 6.8 billion to RS 23.3 billion over 10 years. Identifying the factors that affect the satisfaction of both Muslim and non-Muslim clients with Islamic Easy House Financing (IEHF) is significant. This research then considers the major variables that impact Pakistan's choice of Islamic Easy House Finance (IEHF). Questionnaires were distributed to 160 employees of Meezan Islamic Bank. The current study employed a testing strategy called random sampling. The questionnaire was divided into two segments. One segment included data about the segments, while the other segment focused on the factors that influence how Muslims finance their Islamic Easy House (IEHF). The results demonstrate that several significant variables impact the choice of Islamic Easy House Financing (IEHF), including circumstances, management quality, integrity, prominence in the media, and social impact. The most reliable indication is reputation, as most customers feel comfortable choosing Islamic Easy House Finance (IEHF) because Islamic Meezan Bank has a strong reputation and vision. The study needs to be completely structured. The focus also refers to representatives of a single financial institution. Future research may involve personnel from various Islamic financial institutions. Policymakers and directors could use the tests suggested in the current study as a guide for enhancing Islamic Meezan Bank products and services. There will be an article published on Pakistan's Meezan Islamic Bank as part of the study. This research is the first to examine Pakistan's easy-house-choice Shari'ah laws. For experts and scholars concerned about advancements in Pakistan's Meezan Islamic Bank's banking sector, the findings made throughout this research process will be of the utmost importance.

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“…The greater the distribution of MSME financing, the more it will increase the Financing to Deposit Ratio (FDR). According to the research by Hariyanto & Nafi'ah (2022), Financing to Deposit Ratio (FDR) has a significant negative effect on MSME sector financing in Sharia Rural Banking in Indonesia because the higher the FDR ratio, the better the bank is in carrying out its intermediary function.…”

Section: Research Frameworkmentioning

confidence: 99%

Does Sharia Banking have the Capability to Increase Micro, Small and Medium Enterprises Financing?

Yudiansyah

Srinita

Suriani

et al. 2022

IJFEB

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The contribution of Micro, Small, and Medium Enterprises (MSMEs) has played an important role in GDP and employment growth in Indonesia in the last decades, but still, MSMEs have difficulties accessing bank loans. This study examines the effect of internal factors of Islamic banking performance ratio, financing to deposit ratio, capital adequacy ratio, non-performing financing of total financing, and non-performing financing for MSMEs on the development of MSMEs financing in Islamic Banking in Indonesia. It consists of three Islamic Financial Institutions; Islamic Commercial Banking, Islamic Business Unit Bank, and Islamic Rural Banking from January 2015 until December 2021 (monthly base), using secondary data with 252 observations. The regression model used in this research is Generalised Least Squares (GLS), using Panel Data and the random effect model approach. The results of this study showed that all independent variables, financing to deposit ratio, capital adequacy ratio, non-performing financing of total financing, and non-performing loans for MSMEs, have a significant effect on MSMEs’ financing growth. This study indicates that the contribution of the capital adequacy ratio has a significant positive effect on the growth of MSMEs financing. Also, the financing to deposit ratio and non-performing financing from total financing negatively affect MSMEs financing growth. Besides that, the non-performing financing for MSMEs relatively had no strong negative effect on MSMEs financing growth in sharia banking in Indonesia.

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Analysis of Factors Affecting on Saving Intention in Islamic Bank: The Case in Indonesia

Cited by 6 publications

References 19 publications

What determines the adoption of Islamic finance products in a non-Islamic country? Empirical evidence from Cameroonian small- and medium-sized enterprises

What determines the adoption of Islamic finance products in a non-Islamic country? Empirical evidence from Cameroonian small- and medium-sized enterprises

In Pakistan, the Choice of Requirements for Islamic Easy House Financing by Meezan Bank

Does Sharia Banking have the Capability to Increase Micro, Small and Medium Enterprises Financing?

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