Are Profit Sharing Rates in Mudharabah Account Linked to Interest Rates? An Investigation on Islamic Banks in GCC Countries

Yusof, Rosylin Mohd; Bahlous, Mejda; Tursunov, Hamza

doi:10.17576/jem-2015-4902-07

Cited by 16 publications

(12 citation statements)

References 25 publications

(30 reference statements)

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“…Namun, dari ketiga jenis kerja sama ini mereka memiliki konsep sipallambi melakukannya karena maksud membantu yang lainnya baik dari sisi tenaga maupun dari sisi materi (Vel & Bedner, 2015 Mentode adalah bentuk kerja sama antara pemilik dan petani penggarap dengan menghitung berapa luas lahan yang diselesaikan. Dalam hal ini mereka yang memiliki lahan saling bergantian membantu mengerjakan lahan pertanian dengan tujuan pengeloaan lahan pertanian lebih efisien (Alfian, 2013;D'Antoni & Mishra, 2013;Mulawarman & Kamayanti, 2018;Soonthornchai, 2017;Vel & Bedner, 2015;Suryanto, 2015;Yusof et al, 2015).…”

Section: Koleksi Data Seleksi Kodingunclassified

Budaya Sipallambi’ Dalam Praktik Bagi Hasil

Rahmawati

Yusuf

2020

jamal

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Budaya Sipallambi' dalam Praktik Bagi Hasil. Studi ini berupaya mengkaji sistem bagi hasil berbasis budaya sipallambi'. Metode yang digunakan adalah kualitatif deskriptif dengan pihak kerukunan Keluarga Bastem sebagai informan. Hasil studi menunjukkan bahwa sistem pembagian hasil panen yang dilakukan petani penggarap bukan semata-mata digunakan untuk memberikan atau membantu orang lain agar mendapatkan pendapatan. Sistem ini ditujukan untuk memberikan kemaslahatan untuk kedua belah pihak yang melakukan perjanjian. Pembagian hasil harus diutamakan keadilan di dalamnya. Budaya sipallambi' (tolong-menolong) menjadi landasan bagi masyarakat tersebut.

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Section: Koleksi Data Seleksi Kodingunclassified

Budaya Sipallambi’ Dalam Praktik Bagi Hasil

Rahmawati

Yusuf

2020

jamal

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“…Different findings are presented by Yusof et al (2015) and Yuksel (2017). Yusof et al (2015) found no relationship that prevails between PLS rates and interest rates in the long run.…”

Section: Implementation Of Pls Transactionsmentioning

confidence: 74%

“…Previous studies have tested more on the correlation of interest rate with Islamic banks' return rate. However, previous studies, such as those conducted by Chong and Liu (2009), Yusof et al (2015), Hamza (2016) and Yuksel (2017), are limited to investment account holders (IAH) products. We found Khalidin and Masbar (2017) and Šeho et al (2020) to be the only studies investigating whether IBFRR is interest-free.…”

Section: Introductionmentioning

confidence: 99%

Investigating Equity-Based Financing and Debt-Based Financing in Islamic Banks in Indonesia

Mukhibad,

Setiawan

2023

IJIF

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Purpose — This study empirically examines whether equity-based financing (EBF) generates fixed income similar to debt-based financing (DBF) in the context of Islamic banks in Indonesia. It also investigates whether the Islamic bank financing return rate (IBFRR) has a relationship with the conventional bank lending interest rate (CBLIR). Design/Methodology/Approach — This paper uses monthly data for the period 2009–2019 and produces 132 units of analysis. The object of the study is Islamic banks (IBs) and conventional banks (CBs) in Indonesia. The study uses the Vector Error Correction Model (VECM) as the tool of analysis. Findings — This study provides evidence that, contrary to DBF products, EBF does not have fixed income. EBF in Indonesian IBs has been executed according to the requirements of Islamic law. The study also finds that CBLIR is not correlated with IBFRR. Originality/Value — This is the first study to correlate equity-based financing return rate (EBFRR) with debt-based financing return rate (DBFRR). This paper also examines the no-causality relationship between CBLIR and IBFRR. Research Limitations — This study uses Islamic banking data in the aggregate. Therefore, it cannot explain whether research results differ between banks. Practical Implications — EBF in Indonesian IBs has been applied according to its epistemology. However, the significant increase in mushārakah financing noted over the study period should be followed by a careful customer business feasibility analysis.

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“…However, some previous empirical studies found opposite results whereby IDRs are not linked to conventional interest rates. Yusof et al (2015) assessed the relationship between IDRs and CDRs in the Gulf Cooperation Council (GCC) countries. They found that there is no relationship between IDRs and CDRs in the long run.…”

Section: Review Of Literature Islamic and Conventional Deposit Ratesmentioning

confidence: 99%

The Dynamic Link Between Islamic and Conventional Deposit Rates in a Dual Banking System

Widarjono¹,

Alam²,

Rafik³

2023

IJIF

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Purpose — This study empirically assesses the extent to which the conventional deposit rate (CDR) affects the Islamic deposit rate (IDR) in Indonesia and Malaysia within the dual banking system. Design/Methodology/Approach — This study uses non-linear autoregressive distributed lag (NARDL) and panel cointegration. Monthly data are employed, but the time period for the two countries examined is different because of data availability. The study thus covers the period 2009:M1 to 2020:M12 for Indonesia and 2000:M1 to 2020:M12 for Malaysia. Findings — The findings confirm evidence of the long-run link between IDR and CDR, where the IDRs in Indonesia and Malaysia asymmetrically respond to changes in CDRs. In addition, Indonesia’s IDRs adjust faster in response to the decline in CDRs compared to increases in CDRs. However, Malaysia’s IDRs adapt faster in response to increases in CDRs than their decreases. The panel cointegration results reinforce the asymmetric findings. Originality/Value — To the best of our knowledge, this paper is the first study to examine the extent to which IDRs asymmetrically respond to CDRs in a dual baking system in Indonesia and Malaysia. Practical Implications — Islamic banks (IBs) follow CDRs in determining IDRs due to uncompetitive IDRs, implying that IBs suffer from displaced commercial risk. Therefore, IBs may adopt a policy to address liquidity issues through investment risk reserves (IRR) and profit equalization reserves (PER) to reduce the distinctive gap between IDRs and CDRs.

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Are Profit Sharing Rates in Mudharabah Account Linked to Interest Rates? An Investigation on Islamic Banks in GCC Countries

Abstract: In principle, Islamic banking prohibits interest and advocates profit and loss sharing in its operations

Cited by 16 publications

References 25 publications

Budaya Sipallambi’ Dalam Praktik Bagi Hasil

Budaya Sipallambi’ Dalam Praktik Bagi Hasil

Investigating Equity-Based Financing and Debt-Based Financing in Islamic Banks in Indonesia

The Dynamic Link Between Islamic and Conventional Deposit Rates in a Dual Banking System

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