Religiosity and depositor funds: evidence from Islamic banks in Indonesia

Wijaya, Ibrahim Fatwa; Sugiarto, Catur; Nofandrilla, Nieldya; Sukmajati, Amru

doi:10.1057/s41264-023-00214-y

Cited by 2 publications

(4 citation statements)

References 50 publications

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“…This study demonstrated that attitude (Lebdaoui et al , 2022; Pratama et al , 2023; Saygılı et al , 2022), subjective norm (Farhat et al , 2019; Yusfiarto et al , 2023), PBC (Alzadjal et al , 2021; Maduku and Mbeya, 2023), Islamic financial literacy (Muslihun, 2023; Yeni et al , 2023), religiosity (Alharbi et al , 2021; Alzadjal et al , 2021), consumer conformity (Klabi and Binzafrah, 2023), Islamic branding (Dinc et al , 2023; Faiza, 2023) and behavioural intention (Aslam et al , 2022; Wijaya et al , 2023) influence the compliance behaviour of Islamic customers in Islamic banks. The relationship model between attitude variables, subjective norms, PBC, Islamic financial literacy, religion, consumer conformity, Islamic branding and customer sharia compliance behaviour, which is mediated by behavioural intention factors, represents another discovery (Junaidi et al , 2022; Yeni et al , 2023; Alharbi et al , 2021; Muslihun, 2023).…”

Section: Discussionmentioning

confidence: 74%

“…Previous research has found a positive and significant relationship between the intention to adopt Islamic financial products and their observance (Aslam et al , 2022; Samad et al , 2022; Wijaya et al , 2023). Customers’ adoption of Islamic bank products was mostly motivated by their intention to use bank goods.…”

Section: Results and Analysismentioning

confidence: 96%

“…Referring to Abror et al (2019) and Mehboob Shaikh and Amin (2023), religiosity is the religious experience of Islamic bank customers, such as feeling supervised by Allah SWT, delighted when doing good deeds, doing activities because of Allah SWT, feeling life is regulated by Allah SWT, attempting to avoid small and large sins and selecting Islamic banks because of Islamic practices. Wijaya et al (2023) discovered that religious belief or religiosity is a determining factor when choosing an Islamic bank. Muslim clients believe that subscribing to Islamic banks is in accordance with their beliefs (Shah et al , 2023).…”

Section: Results and Analysismentioning

confidence: 99%

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A systematic review of customer Sharia compliance behaviour in Islamic banks: determinants and behavioural intention

Andespa,

Yeni,

Fernando

et al. 2023

JIMA

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Purpose This study aims to investigate what past scholars have learned about Muslim consumer compliance behaviour in Islamic banks and identify what future research is needed. In addition, it also explores the relationship model between the previously studied determining factors and the customer’s Sharia compliance behaviour. Design/methodology/approach This study used a bibliometric–systematic literature review analysis using the Preferred Reporting Items for Systematic reviews and Meta-Analyses (PRISMA) technique by reviewing the articles published from 2013 to 2023. The PRISMA procedures involved several stages, including identification, screening, eligibility, analysis and conclusion based on the findings. Findings The results found that customer Sharia compliance behaviour determinants in Islamic banks are attitude, subjective norms, perceived behavioural control, Islamic financial literacy, religiosity, consumer conformity, Islamic branding and behavioural intention. Interestingly, the results indicated that such factors as consumer conformity, Islamic branding and sustainable intentions are less discussed. Practical implications Decision-makers in Islamic banks must use digital technology to offer better service and make operations more reachable for customers to access information, complete transactions and manage their accounts by Sharia principles. Therefore, the bank needs to continually produce innovative products and services so that customers have a greater variety of options to suit their Sharia-compliant financial needs. Theoretically, this study has contributed by finding the main critical domains influencing customers’ Sharia compliance behaviour, such as attitudes, subjective norms, perceptions of behavioural control, knowledge of Islamic finance, religiosity, consumer conformity, Islamic branding and behavioural intentions. Then, it makes a theoretical contribution by establishing a model that explains how customers make decisions based on Sharia-related factors in the context of their purchases. Originality/value Past studies focused on the Sharia compliance behaviour in paying Zakat for takaful customers. Therefore, this study provides critical factors of Sharia compliance behaviour on conformity, Islamic branding and sustainable intention regarding unexplored consensus on the determinants and outcomes of customer Sharia compliance behaviour of Islamic banking.

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Section: Discussionmentioning

confidence: 74%

Section: Results and Analysismentioning

confidence: 96%

Section: Results and Analysismentioning

confidence: 99%

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A systematic review of customer Sharia compliance behaviour in Islamic banks: determinants and behavioural intention

Andespa,

Yeni,

Fernando

et al. 2023

JIMA

View full text Add to dashboard Cite

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“…Among these standards is the Shariah Conformity and Profitability (SCnP) model, which assesses the extent to which an Islamic bank's operations and activities comply with Shariah principles while also considering its profitability (Ratnaputri, 2013;Cakhyaneu et al, 2023). This approach is crucial for Islamic banks as they are required to operate in accordance with Islamic law which forbids specific activities in addition to their unique customer behavior (Wijaya et al, 2023;.…”

Section: Introductionmentioning

confidence: 99%

Capturing Islamic bank performance in Indonesia during the COVID-19 crisis: RGEC and SCNP approaches

Hanif Noor Athief,

Ahmad Zaky,

Virgiawan

et al. 2024

Banks and Bank Systems

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While adhering to the unique principle of Islamic value, Islamic banks are subject to any occurring crisis, just like other banks in common. After the end of the COVID-19 crisis, it is important to determine whether Islamic banking can demonstrate its resilience based on the unique values it upholds. Therefore, the primary objective of this study is to capture how Islamic banks performed during the unprecedented challenge posed by COVID-19. By utilizing the data generated from financial reports, this study employs the RGEC (Risk Profile, Good Corporate Governance, Earnings, and Capital) method that was introduced by Indonesia Central Bank and SCnP (Sharia Conformity and Profitability) measurement. The findings show that by utilizing RGEC, the study classifies Islamic banks into tiers of health, distinguishing 7 as very healthy, 5 as healthy, and 2 as fairly healthy. Meanwhile, SCnP sheds light on the balance between Sharia conformity and profitability, highlighting 2 Islamic banks with commendable equilibrium, 5 displaying a tilt towards high profitability and low conformity, 4 with a tendency towards Shariah conformity with low profitability, and 3 struggling with challenges in both aspects. The study concludes the overall financial resilience of the majority of Islamic banks in Indonesia during the pandemic while noting that some banks faced challenges in achieving a harmonious balance between profitability and Sharia conformity.

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Religiosity and depositor funds: evidence from Islamic banks in Indonesia

Cited by 2 publications

References 50 publications

A systematic review of customer Sharia compliance behaviour in Islamic banks: determinants and behavioural intention

A systematic review of customer Sharia compliance behaviour in Islamic banks: determinants and behavioural intention

Capturing Islamic bank performance in Indonesia during the COVID-19 crisis: RGEC and SCNP approaches

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