Islamic Banking Performance Measurement: A Conceptual Review of Two Decades

Rosmanidar, Elyanti; Hadi, Abu Azam Al; Ahsan, Muhamad

doi:10.46281/ijibfr.v5i1.1056

Cited by 7 publications

(6 citation statements)

References 68 publications

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“…There are two main methods commonly used to measure financial efficiency: objective measurement and subjective measurement (Gofwan, 2022). Objective measurement involves collecting data based on available figures such as stock market data or the existing accounting data of companies (Ichsan et al, 2021;Kimani, 2023;Rosmanidar et al, 2021). This approach guarantees high accuracy but may pose challenges in acquiring complete and comparable research samples, particularly in developed countries, due to the time and cost implications (Hult et al, 2008).…”

Section: Literature Reviewmentioning

confidence: 99%

Factors Affecting the Financial Performance of Banks in the Era of Digital Transformation: A Perspective from Vietnam’s Banking Industry

2024

Futurity Economics&Law

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This study aims to explore the factors influencing the financial performance of banks in Vietnam amidst the on-going digital transformation. In today's dynamic economic landscape, characterised by digital transformation and heightened regulatory standards, banks are compelled to innovate in response to continuous macroeconomic fluctuations. While the importance of increasing financial performance was largely recognised, the development and empirical validation of a financial performance model in the banking digital transformation context is not yet completely addressed, especially in developing countries. Utilising foundational theories, this research employed SMARTPLS 4 software alongside a blend of quantitative and qualitative analyses to assess the influences on the financial performance of banks amid digital transformation. Data were collected from 400 bank employees from all genders across Vietnam by the quota sampling method. Most of the survey participants lived in big cities where many banks were concentrated. The research results showed that there were three main factors directly affecting bank financial performance including Deposit mobilisation, Bank profitability, and Loyalty respectively according to the level of impact. This result highlights the importance of effective deposit mobilisation in achieving the bank's financial goals. The results also indicated that the growth of banks' profits is closely tied to their capacity to maintain loyal customers. Additionally, the study revealed a strong correlation between nine other factors, such as Savings Interest rates, Bank technology, and Inflation, with three intermediary factors. Until now, there are very few studies that have comprehensively evaluated both financial and non-financial factors' effect on bank financial performance as this research. This study also offered compelling insights into the strategies of successful banks in Vietnam today, underscoring the importance of investing in bank technology and presenting valuable recommendations. Based on the findings, banks can specifically focus on managing the identified variables and deploying appropriate business strategies to enhance their financial performance for sustainable development in the digital age.

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Section: Literature Reviewmentioning

confidence: 99%

Factors Affecting the Financial Performance of Banks in the Era of Digital Transformation: A Perspective from Vietnam’s Banking Industry

2024

Futurity Economics&Law

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“…Sharia banking generally measures its financial performance with conventional financial ratios, such as CAMELS (Capital, Asset, Management, Earning, Liquidity, Sensitivity of Market Risk) dan EVA (Economic Value Added) (Rosmanidar et al, 2021;Wahyuni et al, 2020). This ratio type is unsuitable for Sharia banking, as it solely serves to optimize value addition for capital (Maharani et al, 2020;Maharani & Rahmawati, 2021;Pratiwi et al, 2023;Rosmanidar et al, 2021).…”

Section: Figure 1 Distribution Of Sharia Banking Assets By Country In...mentioning

confidence: 99%

Good Corporate Governance dan Kinerja Maqashid Syariah pada Perbankan Syariah Asia Tenggara

Yulianto,

Darwanto

2023

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Islamic banking has the characteristics of an operation that uses a profit-sharing system and its main goal is to achieve Falah. This also affects the performance measurement of sharia banking which also adapts to these two characteristics. One method of measuring the performance of Islamic banking is to use the Maqashid-Based Performance Evaluation Model (MPEM) method. This study aims to prove the effect of good corporate governance variables (board of commissioners, independent commissioners, sharia supervisory board, and audit committee) on the performance of Islamic banking based on the MPEM method. This study uses secondary data obtained from 20 Islamic banks in 4 Southeast Asia countries from 2016 to 2020 observation years. The method used for data analysis is using a panel regression model with the random effect as the chosen model. This study found that the board of commissioners and the audit committee has a negative effect on the performance of Islamic banking in Southeast Asia based on maqashid syariah. The ratio of the independent commissioners and the sharia supervisory board does not affect the performance of Islamic banking in Southeast Asia based on Maqasid Syariah. This study also found a result that the average maqashid performance index of sharia banking in Southeast Asia is only around 12.7%. Keywords: Good Corporate Governance, Maqashid Syariah, Performance, Sharia Banks

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“…Sebagian besar studi yang dilakukan dalam dua dekade terakhir berfokus pada praktik dan tata kelola perusahaan bank syariah dan perbandingan antara bank syariah dan konvensional berdasarkan rasio kinerja keuangan dan aspek maqashid syariah (Rosmanidar et al, 2021). Tolak ukur pengukuran kinerja yang digunakan oleh IB sebagian besar berfokus pada ukuran keuangan secara konvensional.…”

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Performance Of Islamic Rural Banks Pre and During Pandemic By Maqashid Sharia Index

2022

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Kajian ini berusaha mengungkap kinerja dari Bank Perkreditan Rakyat Syariah (BPRS) di Sumatera Utara pada masa pra dan pasca pandemi Covid-19. Penelitian ini menggunakan metode penelitian deskriptif kuantitatif dengan sumber data sekunder yaitu laporan keuangan tahunan BPRS Sumatera Utara yang dipublikasikan di situs Otoritas Jasa Keuangan (OJK) tahun 2019-2021. Data dipilih secara purposive sampling dan diperoleh 7 BPRS sesuai dengan kriteria penelitian. Penelitian ini menggunakan Indeks Maqashid Syariah sebagai metode pengukuran kinerja, berdasarkan definisi model maqashid syariah Abu Zahrah. Temuan dalam penelitian ini adalah, selama tahun 2019-2021, rata-rata tingkat kinerja BPRS Gebu Prima Kota Medan tertinggi sebesar 37,5%, dan BPRS al-Washliyah terendah sebesar 22,55%. Hasil penelitian menunjukkan beberapa elemen yang terkena dampak negatif dari pandemi covid-19, seperti tingkat profitabilitas yang sangat rendah. Penelitian ini memberikan kontribusi dalam memberikan informasi kepada stakeholders BPRS di Sumatera Utara untuk terus meningkatkan kinerja dalam dimensi Maqashid Syariah.

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Islamic Banking Performance Measurement: A Conceptual Review of Two Decades

Cited by 7 publications

References 68 publications

Factors Affecting the Financial Performance of Banks in the Era of Digital Transformation: A Perspective from Vietnam’s Banking Industry

Factors Affecting the Financial Performance of Banks in the Era of Digital Transformation: A Perspective from Vietnam’s Banking Industry

Good Corporate Governance dan Kinerja Maqashid Syariah pada Perbankan Syariah Asia Tenggara

Performance Of Islamic Rural Banks Pre and During Pandemic By Maqashid Sharia Index

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