Abstract: This paper aims to analyze the dinamics interaction of islamic banking sector with Indonesian economic growth for 2000-2010. The methode of analyze used in this research is granger causality and Vector Error Correction Model (VECM). Besides that we use stationary test to chek wether the data have unit root or not. We use time series data of total islamic bank fnancing, fxed invesstment, trade and gross
domestic product. We found that in the short run there is evidence of
bidirectional relationship between fnancing of islamic bank, fxed
investment, trade and economi growth. Where as in the long run
there is relationship between islamic banking with economic growth
on Indonesian economy. To improve the role of islamic banking on
Indonesian economy, Bank Indonesia must push islamic banking to
expand their activity on riil sector and rural area.
Keywords: Islamic Banking sector, Financial Intermediary, Economic
Growth, Vector Error Corrrection Model
The Factors Affecting Mudharabah Deposits of Sharia Banking in Indonesiainventionjournals
Mudharabah deposit is one of main fund resource of sharia bank, teherefore the growth must be maintained. This research is aimed to find whether there are influences of profit-sharing rate of mudharabah saving, interest rate of saving in conventional bank, growth rate of Jakarta Islamic Index (JII), and Gross Domestic Product (GDP) to the amount of mudharabah saving in sharia banks. The sharia banks which are used in this research are all of sharia commercial bank in Indonesia.The method of this research is Ordinary Least Square (OLS) with quarterly panel data from 2006 to 2015 of the twelve sharia banks which are observed. The approach model which is used in this research is Fixed Effect Model. The result of this research showed that profit-sharing rate of mudharabah saving, interest rate of saving, growth rate of Jakarta Islamic Index (JII), and Gross Domestic Product (GDP) have significant influences to the amount of mudharabah saving in sharia banks. Profit-sharing rate of mudharabah saving, growth rate of Jakarta Islamic Index (JII), and Gross Domestic Product (GDP) have positive influences to the amount of mudharabah saving, Meanwhile, interest rate of saving in conventional bank has a negative influence to the amount of mudharabah saving
Smooth functioning a bank depends on the stability of stream of returns that it gets from its financing decision. This study is an attempt to showcase the reason for idling or shortage of funds and the factors for the case of Islamic banking. This effort will determine the strategy which can boost the financing in the economy, for this, this study has used the panel data of full-fledged Islamic banks from countries Pakistan and Malaysia, spanning to several years and based on several banks. Based on the analysis of internal and external factors of Islamic banks, it can be seen that increase in the market rate leads to decrease in demand of financing while the increase in deposits and equity do not show a proportional increase in financing which hints that there is excess liquidity available in the Islamic banks. On the positive side, it is evident that increase in the economic activity boosts the demand for Islamic financing.
Performance of Islamic and Conventional Banks in Pakistan (2006-2011), a Comp...IOSR Journals
The aim of this paper was conducted to investigate the financial performance of Islamic and Conventional banks to support depositors, bank managers, shareholders, investors and regulators by providing true picture of financial position of Islamic as well conventional banks in Pakistan. The ratios often compare financial statement data with stock market trading information for publicly traded companies. Financial ratios are an important tool of economic decision-making for all businesses. . It is important to choose financial ratios that are applicable to the business at hand. There are hundreds of financial ratios available, some of which apply to all businesses and some of which are industry-specific. Financial ratios were estimated from annual reports and financial statements i.e. Income statement and Balance sheet for the period of 2008 to 2011. Twelve financial ratios were estimated to measure these performances in term of profitability, liquidity, risk and solvency, capital adequacy. To determine the significance of mean differences of these ratios, Independent sample t-test and ANOVA was used between and among banks. The study concluded that Islamic banks proved to be more liquid, less risky and operationally efficient than conventional banks
The main purpose of this research is to study and highlight that central bank of Jordan (CBJ) plays an important role in economic development. The objective of the financial organization shall be to keep up financial and money stability, to confirm the interchangeability of the Dinar, and to contribute in achieving the banking and money stability within the Kingdom likewise as promoting sustained economic process in accordance with the overall economic policies of the government. To achieve the above- mentioned objectives, CBJ assumes many tasks portrayed in drawing and implementing the financial policy within the Kingdom through an integrated system of monetary policy instruments, setting a evaluation policy of the Dinar compatible with the Jordanian economy, maintaining and managing the Kingdom’s reserves of gold and foreign currencies, regulation credit within the Jordanian economy so as to realize financial and money stability likewise as comprehensive economic process, and issue and regulation bank notes and coins. Subsequently, the central bank plays necessary role within the economic resource allocation of the country. The banking industry may be a major issue that affects the organization of social and economic life cycle within the economies of the planet. it is thought about as associate degree indicator of economic and social growing.. Also, developed financial set up ought to be characterized by the existence of a contemporary and complicated banking industry that contributes to achieving economic balance. It conjointly encourages domestic and foreign investment through the banking system’s ability to states. The aim of the banking industry is to draw in savings domestically and abroad, and direct those savings into productive investment. As a result, this contributes to the accomplishment of economic and social development method, and conjointly facilitates investment activity.
Analysis of Islamic Financial System in the Global Market: And Entry in Indiaiosrjce
Islamic finance has grown rapidly, even though it is still a small share of the global financial market.
The Islamic banking segment has increased its penetration in many countries. It has became systematically
important in Asia and Middle east, while the global issuance of Sukuk- the Islamic equivalent of bonds- is
expanding with remarkable international reach of issuers and investors. This trend is expected to continue,
driven, in particular, by strong economic growth in countries with large and relatively unbanked, Muslim
populations. The Islamic finance industry offers important potential benefits, the IMF stated in its IMF Research
June 15 bulletin.
Financial Performance Analysis of Islamic Bank in Bangladesh: A Case Study on...Premier Publishers
Banking sector is an important sector of an economy of a country, so it is necessary to monitor and evaluate the performance of it. The aim of this paper was to examine the performance of Islamic banking of Bangladesh in particular the experience for Al-Arafah Islamic Bank Limited. The paper goes further to explore some experience on the domestic and global challenges which are facing Islamic banking sector. Performance evaluation methodology used to ascertain the objectives in terms of profit maximization, capital structure and liquidity ratios. We used the financial data of bank from 2010 to 2014 and observed that the trend of all the indicators are positive. The ability, efficiency and number of products of Al-Arafah Islamic Bank Limited are increasing gradually. The investment of Al-Arafah Islamic Bank Limited is mostly on short term basis which is generally similar to other Islamic banks in Bangladesh. Islamic banks are facing some difficulties in their operations especially for non-shariah structure of their stakeholders. This study suggests that Islamic banks of Bangladesh should increase Islamic capital market, Islamic financial instruments, and proper zakat distribution and employment opportunities for the betterment of the society.
The Factors Affecting Mudharabah Deposits of Sharia Banking in Indonesiainventionjournals
Mudharabah deposit is one of main fund resource of sharia bank, teherefore the growth must be maintained. This research is aimed to find whether there are influences of profit-sharing rate of mudharabah saving, interest rate of saving in conventional bank, growth rate of Jakarta Islamic Index (JII), and Gross Domestic Product (GDP) to the amount of mudharabah saving in sharia banks. The sharia banks which are used in this research are all of sharia commercial bank in Indonesia.The method of this research is Ordinary Least Square (OLS) with quarterly panel data from 2006 to 2015 of the twelve sharia banks which are observed. The approach model which is used in this research is Fixed Effect Model. The result of this research showed that profit-sharing rate of mudharabah saving, interest rate of saving, growth rate of Jakarta Islamic Index (JII), and Gross Domestic Product (GDP) have significant influences to the amount of mudharabah saving in sharia banks. Profit-sharing rate of mudharabah saving, growth rate of Jakarta Islamic Index (JII), and Gross Domestic Product (GDP) have positive influences to the amount of mudharabah saving, Meanwhile, interest rate of saving in conventional bank has a negative influence to the amount of mudharabah saving
Smooth functioning a bank depends on the stability of stream of returns that it gets from its financing decision. This study is an attempt to showcase the reason for idling or shortage of funds and the factors for the case of Islamic banking. This effort will determine the strategy which can boost the financing in the economy, for this, this study has used the panel data of full-fledged Islamic banks from countries Pakistan and Malaysia, spanning to several years and based on several banks. Based on the analysis of internal and external factors of Islamic banks, it can be seen that increase in the market rate leads to decrease in demand of financing while the increase in deposits and equity do not show a proportional increase in financing which hints that there is excess liquidity available in the Islamic banks. On the positive side, it is evident that increase in the economic activity boosts the demand for Islamic financing.
Performance of Islamic and Conventional Banks in Pakistan (2006-2011), a Comp...IOSR Journals
The aim of this paper was conducted to investigate the financial performance of Islamic and Conventional banks to support depositors, bank managers, shareholders, investors and regulators by providing true picture of financial position of Islamic as well conventional banks in Pakistan. The ratios often compare financial statement data with stock market trading information for publicly traded companies. Financial ratios are an important tool of economic decision-making for all businesses. . It is important to choose financial ratios that are applicable to the business at hand. There are hundreds of financial ratios available, some of which apply to all businesses and some of which are industry-specific. Financial ratios were estimated from annual reports and financial statements i.e. Income statement and Balance sheet for the period of 2008 to 2011. Twelve financial ratios were estimated to measure these performances in term of profitability, liquidity, risk and solvency, capital adequacy. To determine the significance of mean differences of these ratios, Independent sample t-test and ANOVA was used between and among banks. The study concluded that Islamic banks proved to be more liquid, less risky and operationally efficient than conventional banks
The main purpose of this research is to study and highlight that central bank of Jordan (CBJ) plays an important role in economic development. The objective of the financial organization shall be to keep up financial and money stability, to confirm the interchangeability of the Dinar, and to contribute in achieving the banking and money stability within the Kingdom likewise as promoting sustained economic process in accordance with the overall economic policies of the government. To achieve the above- mentioned objectives, CBJ assumes many tasks portrayed in drawing and implementing the financial policy within the Kingdom through an integrated system of monetary policy instruments, setting a evaluation policy of the Dinar compatible with the Jordanian economy, maintaining and managing the Kingdom’s reserves of gold and foreign currencies, regulation credit within the Jordanian economy so as to realize financial and money stability likewise as comprehensive economic process, and issue and regulation bank notes and coins. Subsequently, the central bank plays necessary role within the economic resource allocation of the country. The banking industry may be a major issue that affects the organization of social and economic life cycle within the economies of the planet. it is thought about as associate degree indicator of economic and social growing.. Also, developed financial set up ought to be characterized by the existence of a contemporary and complicated banking industry that contributes to achieving economic balance. It conjointly encourages domestic and foreign investment through the banking system’s ability to states. The aim of the banking industry is to draw in savings domestically and abroad, and direct those savings into productive investment. As a result, this contributes to the accomplishment of economic and social development method, and conjointly facilitates investment activity.
Analysis of Islamic Financial System in the Global Market: And Entry in Indiaiosrjce
Islamic finance has grown rapidly, even though it is still a small share of the global financial market.
The Islamic banking segment has increased its penetration in many countries. It has became systematically
important in Asia and Middle east, while the global issuance of Sukuk- the Islamic equivalent of bonds- is
expanding with remarkable international reach of issuers and investors. This trend is expected to continue,
driven, in particular, by strong economic growth in countries with large and relatively unbanked, Muslim
populations. The Islamic finance industry offers important potential benefits, the IMF stated in its IMF Research
June 15 bulletin.
Financial Performance Analysis of Islamic Bank in Bangladesh: A Case Study on...Premier Publishers
Banking sector is an important sector of an economy of a country, so it is necessary to monitor and evaluate the performance of it. The aim of this paper was to examine the performance of Islamic banking of Bangladesh in particular the experience for Al-Arafah Islamic Bank Limited. The paper goes further to explore some experience on the domestic and global challenges which are facing Islamic banking sector. Performance evaluation methodology used to ascertain the objectives in terms of profit maximization, capital structure and liquidity ratios. We used the financial data of bank from 2010 to 2014 and observed that the trend of all the indicators are positive. The ability, efficiency and number of products of Al-Arafah Islamic Bank Limited are increasing gradually. The investment of Al-Arafah Islamic Bank Limited is mostly on short term basis which is generally similar to other Islamic banks in Bangladesh. Islamic banks are facing some difficulties in their operations especially for non-shariah structure of their stakeholders. This study suggests that Islamic banks of Bangladesh should increase Islamic capital market, Islamic financial instruments, and proper zakat distribution and employment opportunities for the betterment of the society.
The Urgency of Allignment Islamic Bank to Increasing the Outreach (Indonesia ...Mercu Buana University
The outreach of Islamic Bank is critical to circulate out of maslahah (beneficiaries) to the community (Ummah) and the implementation of Sharia in
totality (Kaffah). Nevertheless, Indonesia as the biggest Muslim in the world should facilitate the Muslim society to access their financial transaction
needs based their Islamic law. The study aims to examine the outreach of Islamic Bank in Indonesia. The methodology in this literature review is
qualitative that support with quantitative data. Three questions research is going to determine in this study are: (i) How the growth of Islamic Banks
from 2008 to 2015? (ii) How many the clients that have sworn out by Islamic Banks? (iii) What is the link between maslahah and the Islamic Bank
growth? We founded the outlet and business performance during 2008-2015 of Islamic Bank in Indonesia still behind from Conventional Bank thus
to improve the backward we need interaction, integration and evolution process from all stakeholders. Due to achieve the increasing of outreach we
also need the role of government in the political will that function to legitimate and enforce the alignment of Islamic Banks (Bank Syariah Mandiri,
BNI Syariah, BTN Syariah and BRI Syariah) became one state own Islamic Bank which objective to create social well-being of the community.
This Research Proposal was prepared by Mr Takkiddin , a Master of Islamic banking student at INSANIAH University College. He sores A+ for this excellence work.
An Empirical Study on the Relationship between Financial Intermediaries and E...iosrjce
The study empirically investigated the relationship between financial intermediaries and economic
growth in Nigeria. Annual time series data covering 1970 to 2013 were used to analyze the long run and short
run relationship between the development of financial intermediaries and economic growth along with the
direction of causality between the indicators. The results of the unit root test show that the variables are
integrated at I(1). Cointegration is being found between the series in the presence of a structural break in 1987,
1992 and 1996. Using bound testing technique for cointegration a stable long-run relationship was found
between the indicators of financial intermediaries and the economic growth. Error correction coefficient was
statistically significant. It was concluded that insurance premium and value of stock transaction have a positive
impact on economic growth in both short runs and long-run. However, bank credit has a negative influence on
economic growth. The causality test reveals a bi-directional relationship between bank credit and economic
growth while a unidirectional causality moves from economic growth to insurance premium and value of stock
transactions. Here remains an important policy implication for the concerned individuals of Nigeria, that is,
they have to emphasize in financial development to ignite economic growth.
The thrust of this study was to determine the impact of micro credit on the MSMEs sector in CRS,
Nigeria. Three hypotheses were formulated from the research questions and tested by using chi-square statistic
to validate the truth or otherwise of the hypotheses. Ex-post factor research design was adopted and a sample
size of 158 respondents was selected and used for the study. A structured questionnaire was used in obtaining
the data. In testing the hypotheses, all the calculated chi-square values were greater than the critical chi-square
value at the given level of significance and degree of freedom. This resulted in rejecting the null hypotheses
while the alternate hypotheses were retained. The results indicated that micro credit programmes have
significant effect on MSMEs in CRS. Equally, credit administration has a significant effect on the performance
of microcredit programmes and that collateral requirements on MSMEs have significant effect on obtaining
credit from microfinance institutions in CRS. Arising from the findings, the study recommends that government
should make more microcredit programmes available for the development of MSMEs in CRS. There should be
efficiency in credit administration on the part of both government and the private sector so as to enhance the
performance of microcredit programmes in CRS and also collateral requirements should be minimized, while
low interest rate should be charged on micro, small and medium enterprises so as to enhance obtaining of credit
facilities from microfinance institutions in the State.
Islamic Finance and Economic Growth in the Kingdom of Saudi Arabia (KSA): An ...scmsnoida5
This paper examines the relationship between
the development of Islamic finance system and
economic growth in the Kingdom of Saudi
Arabia. The relationship between Islamic
banking and economic growth is done using
econometric analysis. In this analysis, we use
Islamic banks’ financing credited to private
sector through modes of financing as a proxy for
the development of Islamic finance system and
Gross Domestic Product (GDP), Gross Fixed
Capital Formation (GFCF) and Foreign Direct
Investment inflow (FDI) as proxies for real
economic growth. For the analysis, the unit root
test, co-integration test and Granger causality
tests were done. Based on the availability of data,
time series data from 1990 to 2010 is used to
examine the relationship between Islamic banks’
financing and GDP, FDI, and GFCF. Data for
all variables are stationary after first difference.
The co-integration results provide an evidence of
a unique cointegrating vector. In other words, there is a long-term stable relationship between
Islamic banks’ financing and economic growth
in the Kingdom of Saudi Arabia. That means
Islamic banks’ financing and economic growth
relationships are moving together in the longrun.
The results from causality tests show that causality
relation exist from the Islamic banks’ financing
to investment and Foreign Direct Investment
(FDI) of the Kingdom of Saudi Arabia. The
results indicate that Islamic finance is a suitable
environment for attracting FDI and FDI
reinforces economic growth.
Microfinance Banking and Development of Small Business in Emerging Economy: N...iosrjce
The research study examines the Microfinance Banking and Development of Small Business in
emerging economy: Nigerian Approach. The Microfinance Banks (MFBs) serve as an engine through which
economic industrial development subsists in Nigeria. MFBs have been involved in the promotion, growth and
development of the informal sector and remains heralded strategy for industrial development in emerging
economies including Nigeria. The primary source of data was adopted via questionnaire and oral interview. A
simple regression was used to address the responses of the respondents gathered though the questionnaire in
order to derive logical conclusion for the study. It was however established that MFBs have the capacity to
boost economic development in Nigeria through the support of government agency (CBN) to keep them tracked
and to be focused on the objectives for which they were established. Also, the reviewing and refining of the
National Microfinance development Strategy Policy for MFBs in Nigeria is remarkable and commendable. The
paper further recommends that MFBs’ operations should be continuously be monitored by the regulatory
agency (CBN) in order to adequately address the gap in terms of credit, savings and other financial services
required by the micro entrepreneurs. The latent capacity of the poor for entrepreneurship would be significantly
enhanced through the provision of microfinance services to enable them engage in economic activities and be
more self-reliant, increase employment opportunities, enhanced household income,create wealth etc.
The Behavioural Finance Aspects of Chit-Fund Scams of Odisha: Loss is almost ...inventionjournals
The research in this paper has been conducted from within the theoretical framework of behavioural finance. The aim of this paper is to examine chit fund scams and its aftermath effect on Individuals & Households of Odisha. The study provides post-mortem analysis of changes in attitude investors towards chit funds. The data comprise a random sampling of 112 respondents drawn through a field survey. Different statistical tests were performed to assess support for the hypothesis.The results of data analysis reveals due to lack of financial literacy and sophistication, investors are simply more exposed to idiosyncrasies of the chit fund companies. Expectations of earnings high commission and high rate of return attracted investors to join chit funds. Someone known to investors or some of the family member or relative persuaded investors to join in chit funds. Majority of the respondents believe that the chit fund agent cheated them and they were unknown about the chit fund company and they believed the chit fund agents. The study shows that laxity in regulatory system and nexus between the politicians and chit fund companies paved way for the perpetrators to commit frauds. The study shows that investors are now more aware about these Chit Fund companies because of the relentless media coverage and would be more careful before investing next time.
A research article that touches upon the everlasting issue of rising Non-Performing Assets ( Stressed Assets) in the Indian Banking Industry.
It explores macro economic concepts coupled with evolving legal regulations that may have just given passage to a lucrative debt market in India.
The Islamic Banking, Asset Quality: “Does Financing Segmentation Matters” (I...Mercu Buana University
Bank stability becomes one of the crucial pillars in maintaining economic growth. Therefore, the segmentation strategy is needed because it aims to improve the financial stability of the bank (decrease Non-Performing Loan-NPL / Non-Performing Financing-NPF). This study aims to determine the effect of segmentation on the quality of Islamic banks proxied with NPF. The method used is a quantitative method with multiple regression test and statistical tool Stata version 13. From the results of statistical data, it is known that the retail segment has a more significant influence than the wholesale segment, which is 92.61% and 56.05%. Therefore, sharia banks should have their business priorities in the retail segment, especially business in the microfinance segment by maintaining the quality of financing through selective financing channeling.
Report on agriculture and rural financing by bangladeshi bankMD. Mahmudul Hasan
Commercial banks as the most important functionary of the financial system play a dynamic role in the economic development of a nation through mobilization of savings and allocation of credit to productive sectors. However, directed and inefficient credit allocation by the commercial banks of Bangladesh in various economic sectors without adequate credit appraisal and monitoring, inter alia, ultimately led to the widespread loan delinquency, and deteriorating health of the entire financial system. An attempt has been made in this paper to examine and evaluate the nature and extent of involvement of commercial banks in development financing in Bangladesh using different performance indicators like branch expansion, mobilization of savings, sectorial and regional distribution of advances, etc. In their noble effort of development financing, commercial banks are facing various problems such as mismatch of sources and uses of funds, extreme dependence on traditional collateral securities, politicization of credit delivery system, absence of sound legal system for recovery of loans, lack of government’s extension facilities in the form of data base, investment counseling, appropriate technology, infrastructure, marketing of products, etc.
The Urgency of Allignment Islamic Bank to Increasing the Outreach (Indonesia ...Mercu Buana University
The outreach of Islamic Bank is critical to circulate out of maslahah (beneficiaries) to the community (Ummah) and the implementation of Sharia in
totality (Kaffah). Nevertheless, Indonesia as the biggest Muslim in the world should facilitate the Muslim society to access their financial transaction
needs based their Islamic law. The study aims to examine the outreach of Islamic Bank in Indonesia. The methodology in this literature review is
qualitative that support with quantitative data. Three questions research is going to determine in this study are: (i) How the growth of Islamic Banks
from 2008 to 2015? (ii) How many the clients that have sworn out by Islamic Banks? (iii) What is the link between maslahah and the Islamic Bank
growth? We founded the outlet and business performance during 2008-2015 of Islamic Bank in Indonesia still behind from Conventional Bank thus
to improve the backward we need interaction, integration and evolution process from all stakeholders. Due to achieve the increasing of outreach we
also need the role of government in the political will that function to legitimate and enforce the alignment of Islamic Banks (Bank Syariah Mandiri,
BNI Syariah, BTN Syariah and BRI Syariah) became one state own Islamic Bank which objective to create social well-being of the community.
This Research Proposal was prepared by Mr Takkiddin , a Master of Islamic banking student at INSANIAH University College. He sores A+ for this excellence work.
An Empirical Study on the Relationship between Financial Intermediaries and E...iosrjce
The study empirically investigated the relationship between financial intermediaries and economic
growth in Nigeria. Annual time series data covering 1970 to 2013 were used to analyze the long run and short
run relationship between the development of financial intermediaries and economic growth along with the
direction of causality between the indicators. The results of the unit root test show that the variables are
integrated at I(1). Cointegration is being found between the series in the presence of a structural break in 1987,
1992 and 1996. Using bound testing technique for cointegration a stable long-run relationship was found
between the indicators of financial intermediaries and the economic growth. Error correction coefficient was
statistically significant. It was concluded that insurance premium and value of stock transaction have a positive
impact on economic growth in both short runs and long-run. However, bank credit has a negative influence on
economic growth. The causality test reveals a bi-directional relationship between bank credit and economic
growth while a unidirectional causality moves from economic growth to insurance premium and value of stock
transactions. Here remains an important policy implication for the concerned individuals of Nigeria, that is,
they have to emphasize in financial development to ignite economic growth.
The thrust of this study was to determine the impact of micro credit on the MSMEs sector in CRS,
Nigeria. Three hypotheses were formulated from the research questions and tested by using chi-square statistic
to validate the truth or otherwise of the hypotheses. Ex-post factor research design was adopted and a sample
size of 158 respondents was selected and used for the study. A structured questionnaire was used in obtaining
the data. In testing the hypotheses, all the calculated chi-square values were greater than the critical chi-square
value at the given level of significance and degree of freedom. This resulted in rejecting the null hypotheses
while the alternate hypotheses were retained. The results indicated that micro credit programmes have
significant effect on MSMEs in CRS. Equally, credit administration has a significant effect on the performance
of microcredit programmes and that collateral requirements on MSMEs have significant effect on obtaining
credit from microfinance institutions in CRS. Arising from the findings, the study recommends that government
should make more microcredit programmes available for the development of MSMEs in CRS. There should be
efficiency in credit administration on the part of both government and the private sector so as to enhance the
performance of microcredit programmes in CRS and also collateral requirements should be minimized, while
low interest rate should be charged on micro, small and medium enterprises so as to enhance obtaining of credit
facilities from microfinance institutions in the State.
Islamic Finance and Economic Growth in the Kingdom of Saudi Arabia (KSA): An ...scmsnoida5
This paper examines the relationship between
the development of Islamic finance system and
economic growth in the Kingdom of Saudi
Arabia. The relationship between Islamic
banking and economic growth is done using
econometric analysis. In this analysis, we use
Islamic banks’ financing credited to private
sector through modes of financing as a proxy for
the development of Islamic finance system and
Gross Domestic Product (GDP), Gross Fixed
Capital Formation (GFCF) and Foreign Direct
Investment inflow (FDI) as proxies for real
economic growth. For the analysis, the unit root
test, co-integration test and Granger causality
tests were done. Based on the availability of data,
time series data from 1990 to 2010 is used to
examine the relationship between Islamic banks’
financing and GDP, FDI, and GFCF. Data for
all variables are stationary after first difference.
The co-integration results provide an evidence of
a unique cointegrating vector. In other words, there is a long-term stable relationship between
Islamic banks’ financing and economic growth
in the Kingdom of Saudi Arabia. That means
Islamic banks’ financing and economic growth
relationships are moving together in the longrun.
The results from causality tests show that causality
relation exist from the Islamic banks’ financing
to investment and Foreign Direct Investment
(FDI) of the Kingdom of Saudi Arabia. The
results indicate that Islamic finance is a suitable
environment for attracting FDI and FDI
reinforces economic growth.
Microfinance Banking and Development of Small Business in Emerging Economy: N...iosrjce
The research study examines the Microfinance Banking and Development of Small Business in
emerging economy: Nigerian Approach. The Microfinance Banks (MFBs) serve as an engine through which
economic industrial development subsists in Nigeria. MFBs have been involved in the promotion, growth and
development of the informal sector and remains heralded strategy for industrial development in emerging
economies including Nigeria. The primary source of data was adopted via questionnaire and oral interview. A
simple regression was used to address the responses of the respondents gathered though the questionnaire in
order to derive logical conclusion for the study. It was however established that MFBs have the capacity to
boost economic development in Nigeria through the support of government agency (CBN) to keep them tracked
and to be focused on the objectives for which they were established. Also, the reviewing and refining of the
National Microfinance development Strategy Policy for MFBs in Nigeria is remarkable and commendable. The
paper further recommends that MFBs’ operations should be continuously be monitored by the regulatory
agency (CBN) in order to adequately address the gap in terms of credit, savings and other financial services
required by the micro entrepreneurs. The latent capacity of the poor for entrepreneurship would be significantly
enhanced through the provision of microfinance services to enable them engage in economic activities and be
more self-reliant, increase employment opportunities, enhanced household income,create wealth etc.
The Behavioural Finance Aspects of Chit-Fund Scams of Odisha: Loss is almost ...inventionjournals
The research in this paper has been conducted from within the theoretical framework of behavioural finance. The aim of this paper is to examine chit fund scams and its aftermath effect on Individuals & Households of Odisha. The study provides post-mortem analysis of changes in attitude investors towards chit funds. The data comprise a random sampling of 112 respondents drawn through a field survey. Different statistical tests were performed to assess support for the hypothesis.The results of data analysis reveals due to lack of financial literacy and sophistication, investors are simply more exposed to idiosyncrasies of the chit fund companies. Expectations of earnings high commission and high rate of return attracted investors to join chit funds. Someone known to investors or some of the family member or relative persuaded investors to join in chit funds. Majority of the respondents believe that the chit fund agent cheated them and they were unknown about the chit fund company and they believed the chit fund agents. The study shows that laxity in regulatory system and nexus between the politicians and chit fund companies paved way for the perpetrators to commit frauds. The study shows that investors are now more aware about these Chit Fund companies because of the relentless media coverage and would be more careful before investing next time.
A research article that touches upon the everlasting issue of rising Non-Performing Assets ( Stressed Assets) in the Indian Banking Industry.
It explores macro economic concepts coupled with evolving legal regulations that may have just given passage to a lucrative debt market in India.
The Islamic Banking, Asset Quality: “Does Financing Segmentation Matters” (I...Mercu Buana University
Bank stability becomes one of the crucial pillars in maintaining economic growth. Therefore, the segmentation strategy is needed because it aims to improve the financial stability of the bank (decrease Non-Performing Loan-NPL / Non-Performing Financing-NPF). This study aims to determine the effect of segmentation on the quality of Islamic banks proxied with NPF. The method used is a quantitative method with multiple regression test and statistical tool Stata version 13. From the results of statistical data, it is known that the retail segment has a more significant influence than the wholesale segment, which is 92.61% and 56.05%. Therefore, sharia banks should have their business priorities in the retail segment, especially business in the microfinance segment by maintaining the quality of financing through selective financing channeling.
Report on agriculture and rural financing by bangladeshi bankMD. Mahmudul Hasan
Commercial banks as the most important functionary of the financial system play a dynamic role in the economic development of a nation through mobilization of savings and allocation of credit to productive sectors. However, directed and inefficient credit allocation by the commercial banks of Bangladesh in various economic sectors without adequate credit appraisal and monitoring, inter alia, ultimately led to the widespread loan delinquency, and deteriorating health of the entire financial system. An attempt has been made in this paper to examine and evaluate the nature and extent of involvement of commercial banks in development financing in Bangladesh using different performance indicators like branch expansion, mobilization of savings, sectorial and regional distribution of advances, etc. In their noble effort of development financing, commercial banks are facing various problems such as mismatch of sources and uses of funds, extreme dependence on traditional collateral securities, politicization of credit delivery system, absence of sound legal system for recovery of loans, lack of government’s extension facilities in the form of data base, investment counseling, appropriate technology, infrastructure, marketing of products, etc.
This is a presentation targeted to non-economics major, to understand where does money come from and how to achieve sustainability of bank business. The script is available at http://getthingsright.blogspot.com/2010/05/1-opening-banking-business-is-one-of.html
Distribution of Wealth in Islam
By Mufti Muhammad Shafi Usmani
Note From Author: In the present study, we propose to state as clearly as possible the point of view of Islam in this matter, such as we have been able to deduce from the Holy Qur'an, the Sunnah, and the writings of the "Thinkers" (to use a current idiom) in the Islamic tradition. The time and space at our disposal being short, it would not be possible to discuss the subject in detail so as to cover all aspects. We shall, however, try to set down the essential and fundamental points in a concise but comprehensive manner.
Introduction to islamic banking and conventional bankingYousuf Ibnul Hasan
Conventional Banking institutions are limited to the monetary affairs and to the monetary markets with a purpose to gain monetary benefits in rightly or wrongly.
Islamic Banks & Financial institution with Islamic norm and directive as define for the betterment of socioeconomic development as the benefit of the society, with commercial viability of the monetary affairs, ventures and transaction in gaining and disposal of basic need and resources.
A2 Macro: Balance of Payments and Exchange Ratestutor2u
All exam boards require candidates to have an understanding of the Balance of Payments and Exchange Rates. In this session we will focus on the causes of the UK’s Balance of Trade (aka Current Account) deficit, what we can do about it, and how an exchange rate depreciation
should affect an economy, and has affected the UK post financial crisis.
The Challenges of Bad Debt Monitoring Practices in Islamic Micro BankingMercu Buana University
The study aims to assess and compare the monitoring procedures in two Bank Syariah Mandiri (BSM) branches located in Cengkareng and Duri Kosambi of West Jakarta city. The research implemented qualitative data analysis tools that consisted in to develop Focus group discussion (FDG) to obtain reliable and depth data related to monitoring practices among loan officers. Meanwhile, interviews were designed to the branch managers of each institution to determine their role in the NPF management. The study results divide into two parts: On the one hand, it highlights the standard monitoring procedures for the Non-performing financing (NPF) in Islamic micro banking and the main differences between conventional and Islamic in NPF management. On the other hand, the second result exposes three main key findings: First one, it confirms the importance of count on proper risk management for Islamic micro banking and harnessing of the sharia principles to maintain the quality of the portfolio. Second, the study reveals a correlation that exists among screening, monitoring, and enforcement, thus how a proper testing and supervision practices may affect in the following steps of the loan cycle. Finally the third one, it shows the impact of real leadership from the head manager in the performance of the institution.
Trust Fund: A Product Combining Waqf, Zakah and Sadaqah for Socio-Economic A...Islamic_Finance
This paper introduces Waqf, Zakah and Sadaqah, which are currently being mobilised by the non-Financial Institutions (non-FIs) such as charitable organisations and Non-Governmental Organisations (NGOs) as additional components of Islamic finance industry, to complement the efforts of financial intermediaries as a contributor to key socio-economic development. The paper presents various aspects of a case study regarding the use of Trust Fund Instrument by the Islamic Development Bank (IDB) for socio-economic development in its member countries including a project run with the co-operation of Bill & Melinda Gates Foundation (Gates Foundation) for polio eradication in Pakistan as part of the Global Polio Eradication Initiative (GPEI).
Abstract: This literature study is explore and compare of Islamic scholar’s thought in contemporary era: Baqr al Sadr, Muhammad Abdul Mannan, Muhammad Nejatullah Siddiqi, Sayyed Haidar Naqf, Taqiyyuddin An Nabhanni, and Monzer Kahf. Islamic scholars are divided into three categories; frstly, an expert in the Islamic law (fqh) that is conducted in a legalistic and normative; secondly, more daring modernist group in their interpretation of Islamic teachings in order to answer the issues facing society today; thirdly practitioners or Muslim economists educational background in the West. They combine both
Islamic law and economic approach that is integrated to be Islamic economy. In fact, the construction of an Islamic economy system capable of delivering on welfare and social justice must be built on the basis of faith (akidah) and described in great detail the concepts of ownership, the role of the state, and distribution, including production and consumption. Even distribution of income in society into the most important thing in the construction of an Islamic economy system, but all of it was related to other elements. Therefore, the construction of an Islamic economy system can not stand alone, but must be integrated and connected with other elements.
Keywords: Islamic economy, Islamic scholars, Contemporary
Respon emosional sebagai mediasi pengaruh visualisasi desain kemasan terhadap...An Nisbah
Abstract: The present study aims at determining the effect of packaging design visualization on customers’ purchasing decision by employing emotional response as mediator variable. The data were collected through questionnaires. Meanwhile, the population of the present study is the customers’ of Sampoerna A mild at Warung Kopi Waris Tulungagung and 110 customers were taken as sample. The sample measurement guideline employed is Maximum Likehood
technique with simple random sampling technique. At the same time, the data analysis employed is structural equation modeling. The result of the study indicates packaging design visualization has negative and insignifcant effect on purchasing decision of Sampoerna A mild. Packaging design visualization of Sampoerna A Mild has positive and insignifcant effect on emotional response. Emotional response has positive and signifcant effect on purchasing
decision of Sampoerna A mild. Emotional response does not mediate the effect of packaging design visualization of Sampoerna A Mild on customers’ purchasing decision.
Key words: packaging design, emotional responses, purchasing
Perkembangan dan pemikiran uang dari masa ke masaAn Nisbah
Abstract: Money is seen not only as a legal tender (legal tender) but is also seen as a commodity that has its price through interest rates, then the nature of money has increasingly shifted away from the truth. Historically the money was divided into three categories, namely cash items, paper money, credit money or demand deposits. While initially people do not know the money, but do exchange between barter goods and services. This type of research used in this discussion is the use of Library Research while the use of the techniques used is content analysis or study the contents. The emergence of money as a solution to facilitate the transaction. In addition, money is also already known in many nations, among others Nations Lydia, the Greeks, the Romans, the Persians, the reign of Islam. In addition to already implemented by some of the nation
but has a different concept, but it is also a lot of scholars who give the concept of money as Al-Ghazali, Al-Maqrizy and Ibn Khaldun.
Keywords: Development, Thought, Money
Peranan deferensiasi, it performance, budaya organisasi dan inovasi terhadap ...An Nisbah
Abstract: The problem of this research is the development of pawning institution. It seems slowly developed and hardly to compete with other pawning institutions. Therefore, some factors causing this problem are needed to be understood. Against this problem, the author feels necessary to examine some factors with important
effect on syariah pawning, such as differentiation, IT-Performance, organizational culture, and innovation. Research type is explanatory research, in which it explains the causal relationship between research variables through hypothesis testing. Population of research is manager with authority of strategic decision
making in the syariah pawning institution in Malang City. Sample is taken by census technique. Data will be subjected to Multiple Regression Analysis. Result of research indicates that Differentiation, IT-Performance, Organizational Culture, and Innovation infuence sustainable competitive advantage. It may be concluded that higher level of Differentiation, IT-Performance, Organizational Culture, and Innovation in the pawning institution can produce higher sustainable
competitive advantage for pawning institutions in Malang.
Keywords: IT-Performance, Organizational Culture Sustainable, SCA
Pengaruh personal selling, direct selling dan hubungan masyarakat terhadap ke...An Nisbah
Abstract: The purpose of this study was to test there any infuence of personal selling, direct selling and public relations signifcantly to customer satisfaction in BMT UGT Sidogiri KCP Kanigoro Blitar. The results show that personal selling, direct selling and public relations together have a signifcant effect on customer satisfaction. count by using T test personal selling unknown variables have positive and signifcant impact on customer satisfaction with the Sig. 0,000.
Variable direct selling has a positive impact and no signifcant effect on customer satisfaction in BMT UGT Sidogiri KCP Kanigoro Blitar with the Sig. 0.423 and variable public relations has a positive impact and no signifcant effect on customer satisfaction in BMT UGT Sidogiri KCP Kanigoro Blitar with the Sig. 0.247.
Keywords : personal selling, direct selling, customer satisfaction
Pengaruh pengawasan, evaluasi dan audit kinerja karyawan terhadap loyalitas a...An Nisbah
Abstract: This research aims is to know the infuence of employee monitoring, employee evaluation and performance audit against the loyalty of members. This research is at BMT Blessing Trenggalek. Samples taken in this study was 50 respondents. Sampling with probability techniques using random sampling. Measurements in this study using a Likert scale. Methods of data analysis used is multiple regression with the help of the program SPSS version 20.The results
showed that monitoring employees against the loyalty of infuential members in a positive and not signifcant according to statistics on the BMT Berkah Trenggalek. Research results show that employee evaluation against the loyalty of infuential members are negative and not signifcant according to statistics on the BMT Berkah Trenggalek. Research results show that the performance audit of employees against the loyalty of infuential members in a positive and
not signifcant according to statistics on BMT Berkah Trenggalek. In the same crucible of employee monitoring, employee evaluation and performance audit of the employees does not affect the loyalty of members. That means that together equal a third of these factors do not affect the loyalty of members on BMT
Berkah Trenggalek.
Keywords: Employee Monitoring, Employee Evaluations, performance
.Audit and loyalty Members
Pengaruh ekuivalen nisbah bagi hasil tabungan, nisbah bagi hasil deposito dan...An Nisbah
Abstract: The research aim is to investigate the equivalent effect of proft sharing ratio of savings, proft sharing ratio of deposits, and the frequency of murabaha fnancing disbursement to the addition of new customers in BMT As- Salam Kras Kediri. The analysis method of the research is multiple regression linier. The results of the research indicated that equivalent of proft sharing ratio of savings and equivalent of proft sharing ratio of deposits have positive effect
but not signifcant on the addition of new customers. Frequency of murabaha fnancing disbursement has positive and signifcant effect on the addition of new customers. And together 3 variables above showed a signifcant effect on the addition of new customers in BMT As- Salam Kras Kediri.
Keyword: equivalent of proft sharing ratio of savings, proft sharing ratio of
deposits, frequency of murabaha fnancing disbursement
Analisis kualitas pelayanan bank terhadap kepuasan nasabah pada bank muamalat...An Nisbah
Abstrak: Penelitian ini bertujuan untuk mengkaji pengaruh variabel kualitas pelayanan bank terhadap kepuasan nasabah. Penelitian dilakukan pada Bank Muamalat Indonesia kantor cabang pembantu Tulungagung. Metode dalam menilai kepuasan nasabah menggunakan analisis SERVQUAL atau analisis gap. Pengumpulan data pada penelitian ini menggunakan angket yang diberikan kepada 196 sampel dengan unit analisis menggunakan analisis regresi. Berdasarkan hasil analisis membuktikan bahwa secara simultan dimensi CARTER yang terdiri dari compliance, assurance,
reliability, tangibles, empathy, dan responsiveness berpengaruh signifkan terhadap kepuasan nasabah. Analisis servqual menunjukkan bahwa dari keseluruhan instrumen dimensi CARTER terdapat kesenjangan atau gap antara harapan nasabah dengan kualitas pelayanan. Analisis diagram kartesius menunjukkan bahwa ada beberapa hal yang perlu diprioritaskan untuk diperbaiki oleh Bank Muamalat Indonesia KCP Tulungagung, antara lain adalah tentang: sistem tabungan, ketepatan waktu pelayanan seperti yang
telah dijanjikan, ketersediaan ATM, Peralatan yang digunakan, hubungan antara pegawai dengan nasabah, perhatian personal bank kepada nasabah, dan respon customer service dalam menanggapi keluhan nasabah.
Kata Kunci: Kualitas Pelayanan, Kepuasan Nasabah, Service Quality
Analisis fatwa dewan syariah nasional nomor 92 dsn mui 2014 tentang pembiayaa...An Nisbah
Abstract: This research is conducted to analyze DSN-MUI law of costing with rahn. This research is a literary research. Literary research itself is a research which use numbers of literatures from library as the main resources. The result of the study are follows : First, law decision of DSN-MUI related to costing with rahn is said to be true, by considering the joint beneft. Second, in this law there is a discrepancy between classic fqh and the result of DSN-MUI
agreement. In mudharabah transaction, actually, there is no requirement to immerse rahn. In this law, howefer, rahn is immersed.
Keyword: Decisison of DSN No. 92 Tahun 2014, Costing, Rahn
Tinjauan syariah terhadap transaksi muamalat asuransi kesehatan badan penyele...An Nisbah
Abstract: Insurance business can be distinguished on some reviews. It includes general insurances, life insurances and reinsurances (on the basis of its function). Based on its basic policy, It includes term life insurances, whole life insurances, two benefcial insurances, insurances of investment unit (unit linked). Based on its belongings, it includes national private-owned insurances, state-owned
insurances, foreign corporations-owned insurances, and multiplicity-owned insurances. Based on the nature of its implementation, it includes voluntary and compulsory insurances. Based on the business support activities, it includes insurance brokers, reinsurance brokers, insurance loss assessor, consulting
actuary, and insurance agents. Mean while, mechanisms of Takaful (shari’a insurances) include underwriting, insurance policies, premiums, management of premiums, claims and insurance coverage. The main obstacles to develop shari’a insurance are lack of socialization, limitation of human resources of Takaful’s expert; lack of Muslim support, weakness of government support.
Keywords: Insurance, Syari’ah, BPJS.
Tinjauan hukum islam terhadap penukaran uang baru menjelang hari raya idul fitriAn Nisbah
Abstract: In Islam, money is not regarded as a commodity that can be traded as in the conventional economic system. Its utilization is limited as a medium of exchange and a measure of value. If a money in the same kind will be exchanged, the payment must be balanced and cash. The violation of these regulations results in the ‘fadl’ usury (Riba Fadl). This research was conducted on the basis of a
fatwa Indonesian Ulema Council (MUI) Jombang East Java, which establishes the prohibition of new money exchange transactions before Idul Fitri for the indication of usury. While on the other hand, the practice is more widespread and becomes a part of the wheels of the economy of Islamic society every Idul Fitri. The results of research show that consideration of Islamic law should be
able to participate in shaping the public life and has the sensitivity to goodness (sense of maslahah). The author concludes that the practice of a new money exchange is allowed. As to the difference of exchanged money does not include the fadl usury, but it becomes wages (ujroh) which must be received by the provider of service as an income when waiting to exchange money in the bank.
Keywords: Money, Usuary, Wages, Maslahah
Studi analisis pembentukan undang undang nomor 21 tahun 2008 tentang perbanka...An Nisbah
Abstract: The background of this research is based on an assessment of Islamic law are more likely to provide input for the establishment of national law because it must be recognized that the majority of Indonesia’s population is Muslim and besides it is also good relation between the State and Muslims have implications
which are positive for the development of Islamic legal legislation became a national positive law. Then, how does the history of the formation of law number 21 of 2008 concerning Islamic banking? How national legal political conditions during the formation of the law number 21 of 2008 concerning Islamic banking? And the last, how is the analysis of the formation of law number 21 of 2008 concerning Islamic banking in the political perspective of national law? Genealogically, the authors concluded that the promulgation of
Law No. 21 of 2008 concerning Islamic Banking is not free of confgurations and tight political struggles, the determination of these laws have a strong foundation juridical, sociological or philosophical that can later be accounted for. Positivasi about Islamic Banking proves that Islamic law has become a source of national law and have the opportunity to contribute the maximum in the development of national law in the future.
Keywords: Islamic banking, Law number 21 of 2008, Political of law
Penyelesaian kredit macet perbankan dalam pandangan islamAn Nisbah
Abstract: The existence of bank (Islamic and conventional) as an intermediary fnancial institution whose existence and operations are regulated by a set of rules and regulations often experiences the uncertainity in taking decisions related to bad loans caused by natural disasters. Like a coin, one hand there are the interests
of the owners of capital and the other side there is a sense of humanity to creditors. It is certain that the settlement efforts should involve the appropriate authorities and require a long time. The taken Decisions often differs from the real cases. It looks not giving the sense of justice for creditors.
Keywords: Bad Loans, Regulations, and Islam.
Pengaruh tabungan mudharabah, pembiayaan mudharabah musyarakah dan pendapatan...An Nisbah
Abstract: The research aims to examine the infuence of savings of Mudharabah, fnancing of Mudharabah-Musharaka and other operating incomes in increasing the proft of Bank Syariah Jatim. The method of analysis in this research used analysis of double linear regression. Populations in the research are the fnancial report of Bank Syariah Jatim. The results of research showed that the profts will increase as savings of Mudharabah increase. In fnancing of Mudharaba-Musharaka, it happened inversely; when fnancing
declined, the proft would increase. It happened because the fnancing which attracted by many customers are the ones with the principle of murabaha fnancing. While, other operational will affect the increase of profts. When other operating incomes increased, the proft would also increase. In the contrast, other operating incomes decreased, the earned proft also would decrease. If all these variables are maximized in its operations, it would assist in increasing
the profts at Bank Syariah Jatim.
Keywords: Savings of Mudharabah, Financing of Mudharabah-Musharaka, Other Operating Incomes, Proft
Pengaruh biografis dan kepemimpinan terhadap kinerja karyawan dengan motivasi...An Nisbah
Abstract: The research aims to know the infuence of biographical characteristics and leadership to performance of employee through motivation as an intervening variable. This study is on BMT’s supervised by Pinbuk Tulungagung. The taken samples in this study were 50 respondents from 7 BMT’s registered in Pinbuk Tulungagung. The Sampling uses a Nonprobability sampling with
the technic of quota sampling. The measurements in this study use a scale of Likert. The used data analysis method is a path analysis with SPSS 20th version to test the effect of intervening variable. The results show that the biographical characteristics do not infuence in the motivation; the leadership infuences positively in the motivation; the biographical characteristics do not infuence in the performance of employees; the leadership infuences positively and signifcantly in the performance of employees; and the motivation infuences positively and statistically in performance of employees The result
of path analysis shows that biographical characteristics do not infuence in the performance of employees through motivation; and the leadership infuences signifcantly and positively in the performance of employees through motivation.
Keywords: Biographical Characteristics, Leadership, Motivation, The Performance of Employee
Abstract: The purpose of this paper is to provide an overview of the similarities and differences in the concept of zakat and tax, opinions of the scholars concerning zakat and taxes, as well as explaining about the effective management of zakat based on the application of the concept of tax. The fndings in this paper indicate that the similarities between the concepts of zakat and the concept of
the tax, namely that both have the elements of force and manager. Meanwhile the differences are that two concepts are located on the side of the name, the legal basis, object, the nature of its obligations, the percentage of the amount paid, and utilization. The concept of tax which can be applied in order to obtain effective management of zakat is to impose sanctions on manager of zakat and negligent muzzaki not pay their zakat as on tax management. This
sanction will improve the system of zakat administration and establishment of an independent agency that acts as the auditor.
Keywords: Zakat, Tax, Similarities, Differences
Cases based learning dan direct instruction untuk meningkatkan keaktifan sert...An Nisbah
Abstract: This research aims to improve activity and learning outcomes of students in the subject of Advanced Financial Accounting especially the material headquarters and branch offces by integrating the model of cases based learning and direct
instruction. In the model case based learning, students are faced with a real case to be solved. Therefore, it stimulates their activities in learning. While, the model of direct instruction is a declarative and procedural learning process that makes students more understand the material. The results of this study show that there is the increase of activity and learning outcomes of students, evidenced by the increase of value and percentage of learning outcomes in the
course of Advanced Financial Accounting.
Keywords: Cases Based Learning, Direct Instruction, Activity, and
Learning Outcomes of Students.
Abstract: In Ulumul Qur’an , the existence of discourse about abrogating (Nasakh) is the real proof that there is a dialectic relationship between revelation and reality. Nasakh is the cancellation of the law. It could be eliminating and releasing the text of the law referring to reading. It also could be defending the text to show the instruction of abrogated law. The research is based on qualitative descriptive study that limits the study on the Mawarits and Wasiyat
verses. The paper is expected to provide scientifc contributions in the form of conceptualization of Ulumul Qur’an oriented to legal legislation and to provide intellectual contributions that combine theory of Nasakh in Ulumul Qur’an through a legal context of usul fqh. Therefore, it is also possible to be an alternative development of Philosophy of Islamic Law .
Keywords: Nasakh , Legal Legislation, Wasiat, Mawaris.
Tinjauan upah hukum positif perspektif doktrin ekonomi islam mengenai upah sy...An Nisbah
Abstract: The realization of a good investment climate, one of them with a conducive industrial relations. The current wage system is still not completely answer the problems of wages is complex, given the rise of workers’ demands related to wages in each year which impact on the weakness of the economy in Indonesia. That requires an alternative solution to the problem of wages complex answer
through the fulfllment of the principle of remuneration in accordance with the conditions and needs of workers / laborers Indonesia. Answering the above problems can put the knowledge to be a solution. One applicative knowledge that can address the problems of wages through sharia. Through normative juridical research method with a prophetic approach based on legal materials
normative-prescriptive, this study aims to analyze the wage review of the positive law doctrine of Islamic economics perspective on wages sharia. It is intended that knowledge can also contribute solutions to the economic problems in Indonesia, especially in the realm of industrial relations.
Keywords: review of wages, positive law, the doctrine of Islamic economics
Tinjauan hukum islam terhadap deposito perbankanAn Nisbah
Abstract: One fund products offered by the bank to customers are deposits. Deposits are deposits that can be withdrawn only at a specifc time based on an agreement between the customer and the bank. Depositing money in the bank is one means of proftable investments . But on the other hand, in recognition of usury in
the public interest to make the banks are having doubts on deposit products. This article tries to fnd out how Islamic legal review of the deposits .
Keywords: deposits, bank, Islamic law
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Interaction of islamic banking sector with indonesian economic growth for 2000 2010
1. INTERACTION OF ISLAMIC BANKING SECTOR
WITH INDONESIAN ECONOMIC GROWTH FOR
2000-2010
Imam Mukhlis
Fakultas Ekonomi, Universitas Negeri Malang
Email: imm_mkl@yahoo.com
Abstract
This paper aims to analyze the dinamics interaction of islamic banking
sector with Indonesian economic growth for 2000-2010. The methode
of analyze used in this research is granger causality and Vector Error
Correction Model (VECM). Besides that we use stationary test to
chek wether the data have unit root or not. We use time series data
of total islamic bank financing, fixed invesstment, trade and gross
domestic product. We found that in the short run there is evidence of
bidirectional relationship between financing of islamic bank, fixed
investment, trade and economi growth. Where as in the long run
there is relationship between islamic banking with economic growth
on Indonesian economy. To improve the role of islamic banking on
Indonesian economy, Bank Indonesia must push islamic banking to
expand their activity on riil sector and rural area.
Keywords: Islamic Banking sector, Financial Intermediary, Economic
Growth, Vector Error Corrrection Model
INTRODUCTION
Developing countries have some problems to get high economic
growth. The most important problems is lack of capital to finance the
project. This happen because many developing countries haven’t a
2. 26 ж AN-NISBAH, Vol. 01, No. 01, Oktober 2014
Imam Mukhlis: Interaction of Islamic Banking........
good financial sector. Financial sector have important role to support
the economic development in developing countries. In this case the
financial sector can focus to do the intermediary function on the
economic system.According to Fry1
financial system on the countries
have two conditions, namely financial deepening ande shallow finance.
To understand why financial sector development, under certain
conditions, may be positively related to economic growth, it is
necessary to understand the critical function the sector provides to
the economy. The financial sector is unique because of the risk and
uncertainty faced by both savers and investors. Savers are often unable
to select the investment project that best matches their personal risk
appetite and without pooling their money, savers cannot take advantage
of increasing returns to scale in investments2
.
Islamic banking is special institution in financial system. This
institution can bridge the economic agent in economic activity. The
special characteristics of islamic banking is syariah mechanism on the
economic and financial transaction. The firs agent have over liquidity
of money and the second agent need some money to finance the
economic activity. The role of financial intermediary focus on how
to increasedeposit fund on the bank and then alocate to economic
activity by credit. This mechanism based on shariah concept. The
concept of sharing in profits and losses derives from the Shariah
precept that money can not generate money. Money is considered as
a mere medium of exchange. It has no intrinsic value in itself. Money
could only generate money if employed in a productive venture (www.
dradamlwfirm.com). Based on the balansheet report, besides capital
and equity, the main sources of funds for Islamic banks would be two
1 Maxwell J. Fry, Money, Interest, and Banking in Development Economic,
John Hopkins University Press. London, 1995.
2 Joseph Stiglitz, “The Role of the Financial System in Development”, Paper
presented at the 4th Annual Bank Conference on Development in Latin America and
the Caribbean, June 29, 1998.
3. AN-NISBAH, Vol. 01, No. 01, Oktober 2014 ж 27
Imam Mukhlis: Interaction of Islamic Banking........
forms of deposits-transaction depo, p.sits and investment deposits.
Lending operation of islamic banking can be separated by mudarabah
financing and musyarakah financing3
.
Recently, many muslims countries try to develop islamic banking
to finance development project on that countries. The characteristic of
islamic banking operation is based on partnership and mutual benefits
principle provides an alternative banking system with mutual benefits
both for the public and the bank. This system will give priorities to
aspects related to fairness in transaction and ethical investment by
underlining the values of togetherness and partnership in production,
and by avoiding any speculative activity in financial transaction. By
providing various products and banking services supported by variative
financial scheme,.Islamic banking will be a credible alternative that
can be benefited by all of Indonesian people without exception (www.
bi.go.id).
A growing up of islamic banking system on economic have
some advantages. The lack of capital in developing countries can be
supported by islamic banking. Deposit fund (dana pihak ketiga) on
the islamic banking can be alocated to various economic sector both
small medium entreprise and corporate. With aqad based on shariah
principle, people can applied request of credit from the islamic bank.
The existence of islamic bank can be easily people to do bussines
activity like buy product material, expand the production areal, and
wider channelling the product distribution.As economic activity grow
up annually, this is representing increasing output on the economy. Its
means that economic growth can grow well.
Many studies explore how the financial system (and banking
system) can affect the economic condition. In here a large body of
empirical research supports the view that development of the financial
3 Mohsin S. Khan andAbbas Mirakhor, The Financial System and Monetary
Policy in an Islamic Economy, JKAU: Islamic Econ., Vol. 1:39-57, 1989.
4. 28 ж AN-NISBAH, Vol. 01, No. 01, Oktober 2014
Imam Mukhlis: Interaction of Islamic Banking........
system contributes to economic growth4
. According Dornbusch and
Reynoso5
a country can suceed to achieve the economic development
target if financial sector can grow well. By the role of financial sector,
economic activity will grow and expand both as spatial and sectoral.
King and Levine6
have examined the interaction between financial
deepening to economic growth for 1960-1989 on 80 countries.
According that research, financial deepening on that countries have
related with economic growth. On the other side Jalil and Ma7
have
pointed that in Pakistan, deposit liability ratio and credit to private
sector have significan effect to economic growth. Meanwhile in China,
only deposit liability ratio have significant effect to economic growth.
Recently, research about islamic banking and economic growth
initially by topics about interactiondeposit fund, total asset, investment
and economic growth. Elhiraika8
examines the practice, problems
and potential of Islamic banking in Sudan. The analyze indicated a
negative trend of financial development and intermediation since the
full adoption of Islamic banking principles in 1990 on Sudan. There
has been a decline, in either real or relative magnitudes or both, in all
key indicators of banking performance. Poor banking performance was
associated with an unprecedented decline in real economic activity, a
highly unstable macroeconomic environment, and repressive monetary
and credit policy. When such constraints are removed only then the
4 R.G. Rajan and L. Zingales, Saving Capitalism from Capitalist, Crown
Business, New York, 2003.
5 Rudigner Dornbusch and Alejandro Reynoso, Financial factors ini
Economic Development, American Economic Review,Vol.79.no.2 : 204-209, 1989,
6 King Levine and Ross Levine, Finance and Growth: Schumpeter Might
be Right, Quartely Journal of Economics, Vol.CVIII, Agustus : 716-737, 1993.
7 Abdul Jalil and Ying Ma, Financial development and economic Growth
:Time series Evidence Form pakistan And China, Journal Of Cooperation, 29,2
:29-68, 2008.
8 Adam B. Elhiraika, Macroeconomic Instability, Financial Repression
And Islamic Banking In Sudan, IIUM Journal of Economics & Management , no.
2 : 61-85, 1998.
5. AN-NISBAH, Vol. 01, No. 01, Oktober 2014 ж 29
Imam Mukhlis: Interaction of Islamic Banking........
Islamic banking system may make a meaningful contribution to
financial and economic growth in Sudan.
On the other side, Furqoni and Mulyani9
have concluded that in
the long run there is bidirectional relationship between islamic bank
and fixed investment in Malaysia. Besides that there is evidence to
support demand following hypothesis of GDPand islamic bank. Where
increase in GDP cause islamic banking to develop and not vice versa.
Karim, et.al10
, using a VAR model, demonstrates that monetary policy
tightening in Malaysia reduces bank lending to all the sectors, but
some sectors such as manufacturing, agricultural, and mining sectors
are more affected.
In most other countries, including Indonesia, islami transactions
and institutions make up a small part of the total and must compete with
conventional financial institutions. There is even considerable Islamic
banking in the United States. If the terms and conditions of Islamic
transactions differ too much from those of conventional institutions
they become hard to sustain. The terms and conditions of Islamic
institutions therefore tend to converge with conventional ones11
.
In view of providing a wider banking services alternative
to Indonesian economy, the development of Islamic banking in
Indonesia is implemented under dual banking system in compliance
with the Indonesian Banking Architecture (API). Islamic banking
and conventional banking systems jointly and synergically support a
wider public fund mobilization in the framework of fostering financing
capability of national economic sectors (www.bi.go.id).
9 Havas Furcony and Ratna Mulyani, IslamicBanking and Economic
Growth: empirical Evidence from Malaysia, Journal of Economic and Development,
Vol.30,No.2 : 59-74, 2009.
10 M. Abd. Karim; Mohd Harif A. and Adziz A. Monetary Policy and
Sectoral Bank Lending in Malaysia, Global Economic Review, 35(3), 303-326, 2007.
11 Thomas A. Timberg, Risk Management: Islamic Financial Policies
Islamic Banking and Its Potential Impact, papers, http://www.ruralfinance.org/
fileadmin/templates/rflc/, 2012.
6. 30 ж AN-NISBAH, Vol. 01, No. 01, Oktober 2014
Imam Mukhlis: Interaction of Islamic Banking........
Islamic banking in Indonesia has some unusual characteristics.
Like most microfinance institutions in Indonesia, Islamic institutions,
micro or otherwise, are generally private, for-profit institutions based
on the intermediation of depositor funds secured on a competitive
market. In this they are different from microfinance institutions in
almost every other country in the world. They typically have no
explicit social goal other than profit maximization and conformity
with Islam, though in some cases a social element is present, as we
will see. Social impacts are thus the result of the market impacts of
the Islamic institutions12
.
Initially, Islamic financial institutions in Indonesia wa started by
the Bank Muamalat Indonesia which has been functioning since 1992.
Next period at 1998 PT. Bank Syariah Mandiri have operated islamic
banking system on the national economy. PT. Bank Mega Syariah have
operated at 2001 and PT. Bank Bukopin Syariah and PT. BRI Syariah
have operated shariah system on the banking operation at 2009. The
existence of these bank can be easily the people to save and borrow
the money from the financial system. People have some alternative
to invest their money on different financial instrument. Besides that
people have some alternative too financing the development projects.
The prohibition of interest rate is main characteristics on the islamic
banking.
Progress of Indonesian economic for 2000-2010 have pointed
by liberalization and globalization, regional autonomy, fiscal
decentralization, privatization, and taxes. External shock from
USA, Europe area and others developed countries cause pressure to
Indonesian economic. This happen because, indonesian economic
have integrated with global market by trade and investment activity.
From internal condition, Indonesian economy have some problems like
unemplyment, poverty, income disparity and corruption. Meanwhile
12 Thomas A. Timberg, Risk Management, 2012.
7. AN-NISBAH, Vol. 01, No. 01, Oktober 2014 ж 31
Imam Mukhlis: Interaction of Islamic Banking........
for 2000-2010, Indonesian economy still growth average by 5,2%.
This means that economic activity was resulting output increase by
5,2% annually.
Indonesian economic growth for 2000-2010 have business cycle
pattern. Up and down economic condition have affected economic
performen in Indonesia. For 2000-2010 decreasing economi growth
happend at 2001 and 2009. Decreasing for that period caused by
external condition, namely debt crisis in USA and Europe. These
economic crisis from abroad have contagion effect to Indonesian
economic. External crisis can influence national economy by
movement on stock market index, exchange rate volatility and flow
of foreign direct investment. Besides that, the existence of economic
integration on theAsia, US and EuropeArea will accelerate depedently
of economic activity on the world. Anything economic condition on
one countries will effect to other countries. This is can happen because
there is economic integration in multiareas.
Besides economic growth, the progress of Indonesian economy
can be drawn by development on investment and trade activity.
For 2000-2008, progress of international trade (export+import)
on Indonesia show increasing value. But for 2008-2009 there is
negative condition on Indonesia international trade. Increasing value of
international trade have implication to the growing of domestic activity
and economic openness. The Indonesian participation on bilateral and
multilateral economic cooperation can open international market to
Indonesian commodity (product).
Progress on investment activity in Indonesia economy show
that for 2000-2010 there is increasing value. At 2000, value of fixed
investment (gross fixed capital formation) Rp. 275,881 billions.
At 2010 the value increase to Rp. 553,412 billions. Its means that,
economic capacity need much capital that can be supported by
domestic or foreign financing. Based on that figures increasing in
8. 32 ж AN-NISBAH, Vol. 01, No. 01, Oktober 2014
Imam Mukhlis: Interaction of Islamic Banking........
fixed investment not parallel with progresion in economic growth,
and international trade value.
To achieve a high economic growth annually, many strategics of
development can be done by government together with provate sector.
Investment activity parallel with providing public infrastructure and
deregulation policy can trigger domestic economic progress. Public
sector and coporate sector respons the goverment policy by increasing
product capacity booth on domestic market and abroad market. This
condition can accumulate higher economic activity on the regional
and national economic.
Increasing economic activity must be supported by financial
sector. In this case, the role of islamic banking in financial and monetary
sectors very important. The islamic banking in Indonesia have positive
position to serve financing activity was held by economic agent.
Progression of islamic banking Indonesia for 2000-2010 showing the
expansion. At 2000, islamic banking unit amount 3 (units), and for
2010 the islamic banking unit amount 23 (units).Total offices of islamic
banking in Indonesia for 2000 amount 146 units and for 2010 amount
1763 units. The total assets of islamic banking in Indonesia for 2000
amount as Rp 1,79 billions and for 2010 amount as Rp. 97,51 billions.
Growing up of islamic banking on national economic system will to
easily financial intermediation can function well.
In the context of macro economic management, an extensive use
of various Islamic financial products and instrument will help attaching
financial sector and real sector and create harmonization between the
two sectors. In addition to support financial and business the widely
use of islamic product and instrument will also reduce speculative
transactions in thus the economy supports the stability of overall
financial system. At the end, the Islamic banking will significantly
contribute to the achievement of mid-long term price stability (www.
bi.go.id).
9. AN-NISBAH, Vol. 01, No. 01, Oktober 2014 ж 33
Imam Mukhlis: Interaction of Islamic Banking........
Growing up of economic activity on Indonesian economic
paralle with positive progression of islamic banking. For 2000-2010
deposit fund that was collected by islamic banking in Indonesia
amount Rp. 1,03 billions at 2000 and amount Rp. 76,036 billions.
The total financing at 2000 amount as 1.27 trillion Rp and for 2010
the total financing amount as 68.18 trillion Rp (Bank Indonesia).
Bank Indonesia have strategic role to support progression of islamic
banking in Indonesia. In that case, the enactment ofAct no. 21 of 2008
issued on July 16, 2008 has provided a more adequate legal base to the
development of Islamic banking in Indonesia ,and consequently will
accelerate the growth of the industry. With an impressive development
progress reaching an annual average asset growth of more than 65%
in the last five years, it is expected that Islamic banking industry will
have a more significant role in supporting national economy (www.
bi.go.id).
Based on that explanation, we interesting to analysize the role of
islamic banking on the economi condition in Indonesia for 2000-2010.
These periode representing the dinamically of external environment of
Indonesia economy. Besides that Indonesia with the world’s largest
population of Muslims has potentially in islamic banking expansion.
Agrowing up of islamic banking institution in Indonesia can improve
finance sector to support economic activity in national economy.
METHODE
Types and Sources of Data
Data used in this research is time series data for 2000-2010.
These periode show the dynamically Indonesian economic stability.
These data was collected by documentation method. This data is
needed because this study analyzed the phenomenon of the aggregate
economy. The data are, the value of gross fixed capital formation
10. 34 ж AN-NISBAH, Vol. 01, No. 01, Oktober 2014
Imam Mukhlis: Interaction of Islamic Banking........
(fixed investment), value of international trade, economic growth, and
financing of islamic banking. While the data sources such as theAsian
Development Bank (2011) and Bank Indonesia (2011).
Data Analysize
To provide empirical evidence of the interaction between islamic
banking and economic growth, we use granger causality method and.
Besides that we applied the cointegration test to examine the long run
relationship between the variables observed. Granger causality is used
to analisyze the exitence of causality between islamic banking and
economic growth. In the Granger-sense x is a cause of y if it is useful
in forecasting y1. In this framework ”useful” means that x is able to
increase the accuracy of the prediction of y with respect to a forecast,
considering only past values of y13
. Besides that Granger causality tests
are conducted to determine whether the current and lagged values of
one variable affect another. The equation and formulation models of
granger causality test as below :
Economic growth (G) and Finance (FN)
,
∑∑ =
−−
=
++
n
i
titiit
n
i
i FNG
1
1
1
βα
=
Gt
∑∑ =
−−
=
++
n
i
titiit
n
i
i GFN
1
2
1
λγ
= FNt
)Fixed Investment (LGFCF) and Finance (FN
,
∑∑ =
−−
=
++
n
i
titiit
n
i
i FNLGFCF
1
1
1
βα
= LGFCFt
13 Pasquale Foresty, Testing for Granger Causality between Stock Prices
and Economic Growth, Paper, MPRAPaper No. 2962, Online at http://mpra.ub.uni-
muenchen.de/2962/, 2006.
11. AN-NISBAH, Vol. 01, No. 01, Oktober 2014 ж 35
Imam Mukhlis: Interaction of Islamic Banking........
∑∑ =
−−
=
++
n
i
titiit
n
i
i LGFCFFN
1
2
1
λγ
= FNt
)International Trade (TRADE) and Finance (FN
,
∑∑ =
−−
=
++
n
i
titiit
n
i
i FNTRADE
1
1
1
βα
= TRADEt
∑∑ =
−−
=
++
n
i
titiit
n
i
i TRADEFN
1
2
1
λγ
= FNt
The charactersitics of granger causality test are :
•Unidirectional Granger-causality from X to Y. In this case the
X variable increase the prediction of the Y variable but not vice versa
•Unidirectional Granger-causality from Y to X. In this case Y
variable increases the prediction of X variable but not vice versa
•Bidirectional (or feedback) causality
•Independence between X and Y. In this case there is no
Grangercausality in any direction
One implication of Granger representation theorem is that if two
variables, say Xt andYt are co-integrated and each is individually 1(1),
then either Xt must Granger-cause Yt or Yt must Granger-cause Xt.
Stasionarity Test
Statistically, there are several ways to test the null hypothesis
of the existence of unit roots (said to be stationary when the variables
have unit roots), such as the Dickey Fuller test (DF) and Augmented
Dickey Fuller developed into (ADF), Cointegration Regression Durbin
Watson test (CRDW) Z test by Phillips. Nevertheless DF and ADF
test is a popular test in the analysis of time series data stasionaritas.
In this study the unit root test conducted by the ADF test, this is
because the regression equation added regresor differenced terms so
as to minimize the risk of autocorrelation in the residuals of his time
12. 36 ж AN-NISBAH, Vol. 01, No. 01, Oktober 2014
Imam Mukhlis: Interaction of Islamic Banking........
estimates in determining the stationary or not14
. Therefore, in this study
focuses more on the ADF test because this test is the development of
the DF test.
ADF is a regress test using each series own lagged terms with big
differences. Many econometric programs satisfyADF test statistics. If
calculated t-value of variable is greater than ADF critical t-value then
H0 is rejected and thus the data is stationary. In addition, computer
programs give the McKinnon critical values simultaneously that helps
us to understand whether series are stationary or not at a 1%, 5%,
10% levels. It can be decided by comparing these values with ADF
test statistics whether series are stationary or not. If ADF test statistic
is greater than McKinnon critical values absolutely, the series are
stationary at that level. For instance, if ADF test statistic were greater
than McKinnon critical value for 5% levels but less than McKinnon
critical value for 1% level, then series is stationary at 5% levels but
non-stationary at 1% level. In such a situation, it is necessary to take
all results at 5% levels15
The ADF was established in order to obtain autoregresive
equation model as follows:
DXt = a0 + a1T+ a2 Xt-1 + b1DXt-1 + b2DXt-2 ……… br-
1DXt-i.+Ut
or
DXt = a0 + a1T+ a2 Xt-1 +
∑=
−
m
i
iti DXb
1 .+Ut
Where DXt = Xt-Xt-1, i = order difference equation, T = time
trend, Xt is the variable that was observed in period t. In this case the
value of the ADF to test the hypothesis a2 = 0 is indicated by the ratio
of regression coefficient t on Xt-1 equation.
The test criterion is that if the t value of the parameter a1 equation
14 R.L. Thomas, Modern Econometrics : an Introduction, New York:
Addison Wesley, 1997.
15 C. Brooks, Introductory Econometrics For Finance , Cambridge
University Press, 2002.
13. AN-NISBAH, Vol. 01, No. 01, Oktober 2014 ж 37
Imam Mukhlis: Interaction of Islamic Banking........
is greater than the ADF table at a certain degree of confidence, then
Ho is that states are not stationary data (containing the unit root) is
rejected and instead accept the alternative hypothesis that states the
data stationary (does not contain unit root). Meanwhile, when the
value of t statistic values on regression coefficients Xt-1 (t-test) in
more smaller than the ADF table, then the hypothesis Ho is that states
are not stationary data is received and otherwise reject the alternative
hypothesis that states the data stationary.
If the observed data are not all stationary, then the next step
is to test the degree of integration. This test is to determine at what
degree the observed data are not stationary line will become stationary.
A variable is said to integrate the degree d or I (d), ie, if the data is
necessary differentiation of d times to become stationary.
This test is basically the same as the unit root test in the previous
section. Only Xt to be replaced with DXt, so that:
D(DXt) = a0 + a1T+ a2 DXt -1 + ∑=
−
m
i
iti DXDb
1
)( .+Ut
Where D(DXt)=DXt - DXt-1
For testing the same as the unit root test as described previously.
Most important in this test is to what degree these variables are not
stationary become stationary after in-difference. If after the one-
time-difference or Xt be a stationary DXt Xt is the variable degree of
integration on one or I (1). If DXt not still not so in-difference stationary
once again so that Xt becomes D (DXt) and the results are so variable
Xt is stationary on the degree of integration of two or I (2).
Cointegration test
Cointegration concept is basically the existence of long-term
equilibrium relationship between economic variables which are
referred to the economic system will experience konvergenitas any
time. Individual variables used in the model could be everything is
not a stationary but overall these variables cointegrated.To know the
14. 38 ж AN-NISBAH, Vol. 01, No. 01, Oktober 2014
Imam Mukhlis: Interaction of Islamic Banking........
presence of long-term relationships between economic variables, then
there are some conditions that must be met, namely16
.
a. Existing time series data on the degree of a stationary, I (1).
b. There is a linear combination between time series data, namely
the degree of 0 (I (0)).
So that if two things are met in the model, it can be said to have
occurred cointegration between economic variables are observed.
While to know the occurrence of cointegration in a model can be done
by testing the stasionarity residuals obtained from OLS estimation of
static regression models. Stasionarity test against a static regression
residuals can be done by using the approach of Dickey-Fuller (DF test)
and Augmented Dickey-Fuller (ADF test). Residuals are stationary
gives the sense that among the variables that have estimated the long-
term relationships17
. In conclusion, if disturbance terms in regression
model of the variable on the other variables are stationary then two
or more series that are non-stationary must be co integrated. In the
other words, if Yt ~ I (1) and Xt ~ I (1) then Ut~ I (0). So Xt and Yt
are co integrated.
As illustration, two series making stationary by taking first
differences has co integration relationship as :
Yt = βX t+ Ut
In addition, if Ut disturbance term is stationary (I (0)) then it
means that two variables are co integrated. Then the hypothesis will
be as
H0 : = 0 (there is no co integration between the series)
H1 : 0 (there is co integration between the series)
If variables statistical value is greater than critical value, the null
hypothesis should be rejected. This means there is a co-integration
between series moving together in the long term.
16 R.L. Thomas, Modern Econometrics, 1997.
17 R.L. Thomas, Modern Econometrics, 1997.
15. AN-NISBAH, Vol. 01, No. 01, Oktober 2014 ж 39
Imam Mukhlis: Interaction of Islamic Banking........
RESULT
Test of Unit Root
Result of this test can be shown below :
Table 1 : Unit Root Test
Variables ADF Test
Level First Differnce
G -1.674239
(0.1451)
-2.996410
(0.0302)*
FN 4.319261
(0.0050)
2.966324
(0.0251)*
LGFCF 0.260128
(0.8035)
-3.705428
(0.0139)*
TRADE 0.106543
(0.9203)
-3.024398
(0.0566)**
Notes : G is economic growth, FN is financing, LGFCF is log of
gross fixed capital formation, Trade is international trade
*, **, significant 5%, 10% level respectively. Figures in parentheses
are the p-value
Sources : Data estimation
Based on the above table shows that the only variable at the
level, only FN variable has stationary (unit roots) at the degree
level (I(0). While the other variable is not stationary at the zero
degrees. Based on the degree of integration of test results showed
that after differentiation in-one times (I (1)), then all variables
are stationary. These stationary can be significant at different
level from 5% until 10%. Therefore we can conclude that all
variables are integrated of degree one (I (1)). Since the variables
are integrated of order 1, i.e. I(1), we can test whether they are
cointegrated or not.
16. 40 ж AN-NISBAH, Vol. 01, No. 01, Oktober 2014
Imam Mukhlis: Interaction of Islamic Banking........
Johansen Cointegration Test
To examine if there is a long-term relationship between
islamic banking and economic growth, co-integration test should be
made. To test it, maximum eigen and trace statistics are used. While
determining long-term relationship between variables with Johansen
cointegration test, established VAR numbers of lag is very important.
While determining number of lag,Akaike Information Criteria (AIC),
Schwarz Criteria (SW), Hannan Quinn Criteria can be used. In this
study, Schwarz Criteria is used. Moreover, in all VAR models,stability
test was used and auto correlation tests to residuals were made.
Models are generally stable and residuals are not auto correlated
(Vuranok,2009). Johansen co-integration test results are in table below :
Table 2 : Johansen Cointegration Test
Variables T r a c e
statistics
Critical Values
(5%)
M a x
Eigenvalue
C r i t i c a l
Values (5%)
G
Ho : r = 0 16.45501* 15.49471 15.18882* 14.26460
Ho : r ≤ 1 1.266188 3.841466 1.266188 3.841466
LGFCF 21.86684* 15.49471 21.59592* 14.26460
Ho : r = 0 0.270924 3.841466 0.270924 3.841466
Ho : r ≤ 1
TRADE 16.99511* 15.49471 12.28518 14.26460
Ho : r = 0 4.709930* 3.841466 4.709930* 3.841466
Ho : r ≤ 1
Notes : G is economic growth, FN is financing, LGFCF is log
of gross fixed capital formation, Trade is international trade*,
significant 5% level respectively
Sources : Data estimation
The result show that null hypotheses of non cointegration are
17. AN-NISBAH, Vol. 01, No. 01, Oktober 2014 ж 41
Imam Mukhlis: Interaction of Islamic Banking........
rejected by 5% level for G, LGFCF and Trade. Its mean that at least
one cointegration vector exits in each of the variables.The economic
growth (G), fixed investment (LGFCF) and international trade
(Trade) cointegration equations suggest that in the long run islamic
bank financing contribute to increase economic growth, investment
and international trade in Indonesia. Since there is cointegration
between islamic bank financing and economic growth in the long
run on Indonesian economy, we could process a granger causality
test to analysize the interraction between islamic bank financing and
economic growth.
Granger Causality Test
The result of granger causality test can shown below :
Table 3 : Unit Root Test of Residual
Null Hypothesis: Obs F-Statistic Probability
FN does not Granger Cause G 9 0.18138 0.84062
G does not Granger Cause FN 0.41540 0.68562
FN does not Granger Cause LGFCF 1.39792 0.34645
LGFCF does not Granger Cause FN 0.74748 0.52990
FN does not Granger Cause TRADE 1.79059 0.27839
TRADE does not Granger Cause FN 6.76687 0.05204
Note: for F-statistics, probabilities are greater than 1% levels 5%, or
10% level null hypotheses are rejected at that level.
Sources : Data Estimation
According to results except the causality between TRADE
àFN, shows us the null hypothesis is rejected. Its happen because
probability of the F statistics are greater than 1%, 5% and 10%.
Besides that causality between TRADE àFN show us the null
hypothesis is not rejected. It means that the indicator international
trade (TRADE), which represents economic openness, cannot causes
ismalic bank financing on the Indonesian economy. Therefore, there
18. 42 ж AN-NISBAH, Vol. 01, No. 01, Oktober 2014
Imam Mukhlis: Interaction of Islamic Banking........
is not a short-term relationship between international trade and islamic
bank financing. Interraction between FN àTRADE show us the null
hypothesis is rejected. It means that the variable FN, which represents
islamic bank financing, can causes TRADE on the Indonesia economy.
The other results show that there are bidirectional interaction between
variables islamic bank financing with economic condition variables.
Discussion
Based on the results, show that the role of islamic bank on
Indonesia economy very important. Existence of islamic bank can
support economic activity by providing the financial service to
economic agent. Both in the short run and in the long run, specifically
the islamic bank has important role to the Indonesian economy.
According to Ebrahim and Joo18
the role of islamic bank can foster
the growth of the economy of Muslim nations by developing financial
markets, institutions and instruments.Awell-developed capital market,
with efficient institutions offering diverse financial facilities, can
reduce the overall cost of capital.
Much of people are muslims religion and need sharia banking
institution in their economic activity. The potential for Islamic-banking
services has even attracted the attention of conventional banking giants
in Indonesia such as Bank Mandiri, Bank BRI and Bank BNI. Up to
2010 year, total offices of islamic banking in Indonesia amount of 1763
units. These offices can provide financial services both in urban and
rural area. Since many people save the money to the islamic bank, it
will increas capacity of islamic bank to support economic activity by
financing the business project (i.e ; small medium entreprises, corporate
business, cooperation and personal/informal economic activity).
Increasing of islamic banking role on the economy can increase
18 M. Shahid Ebrahim and Tan Kai Joo, Islamic banking in Brunei
Darussalam, International Journal of Social Economics, Vol. 28,No.4 : 314-337,
2001.
19. AN-NISBAH, Vol. 01, No. 01, Oktober 2014 ж 43
Imam Mukhlis: Interaction of Islamic Banking........
gross fixed capital formation and international trade activity (export
and import). Finally the accumulation of these economic activity
(investment and trade) can support Indonesian economic growth.
The result of this research is parallel with empirical finding by
Jalil and Ma19
, Furqoni and Mulyani20
. These research has stressed
that in many muslims countries islamic bank can support economic
growth. The condition in Indonesia, has similarly characteristic with
other muslim countries on the world namley ; developing countries,
big population, and low human resources. These condition can cause
welfare live in muslim countries below living standar. The existence
of islamic bank in Indonesian financial system can strengthen the
domestic financial sector on the economy. Finally this progress can
improve financial intermediary to provide financial institution in
Indonesia economy.
CONCLUSSION
This research aims to analyze the interacation between islamic
banking and economic growth in Indonesia for 2000-2010. The results
generally show that in the long run there is positive and significant
correlate between islamic banking financing with economic growth,
fixed investment and trade. It means that islamic bank can facilitate
economic agents to do their economic activity. In this regard islamic
banking can accomodote the savers and barrowers with financial
intermediary function. In this condition, the role of Bank Indonesia
to control and direct islamic banking in order to expand their activity
on the economic sector. Bank Indonesia hoped that the existence of
islamic banking in Indonesia financial system can wider the banking
role to financing the economic development. This results also indicate
that the improvement of islamic banking on their infrastructure can
help goverment to increase the capital capacity which needed in
19 Abdul Jalil and Ying Ma, Financial development, 2008.
20 Havas Furqony and Ratna Mulyani, Islamic Banking, 2009.
20. 44 ж AN-NISBAH, Vol. 01, No. 01, Oktober 2014
Imam Mukhlis: Interaction of Islamic Banking........
development. By doing so, government can believe that in the long
run islamic banking can foster people to achieve economic welfare.
Based on this results, there are some suggestions to improve th
role of islamic banking on Indonesian economy. First, Bank Indonesia
must create a policy to push islamic banking activity on riil sector. This
sector (include SMEs and informal sector) is need capital to expand
the economic activity. Market potential on islamic banking must give
benefit to economic activity by providing much financing to riil sector.
Second, Bank Indonesia must direct on progression of islamic banking
to rural area. This could be done by arrangement in new operating
bank of banking office must located at rural district (Kecamatan).
This policy very important because there is economic disparity (gap)
between urban area and rural area. The existence of islamic banking
on rural district can help people to interact with financial system on
their economic activity. Rural people can have chance to get financial
services by sharia mechanism to do business action. By this condition,
we believe that islamic banking can give optimal contribution to
Indonesian development.
21. AN-NISBAH, Vol. 01, No. 01, Oktober 2014 ж 45
Imam Mukhlis: Interaction of Islamic Banking........
REFERENCES
Asian Development Bank, 2011. Key Indicators for Asia and the
Pacific, available from www.adb.org, access date: December, 26 th
Bank Indonesia, 2012.Monthly Statistics Report on Indonesian Islamic
Banking Statistics (2002-2008), available from www.bi.go.id,
access date : January, 2 nd
Bank Indonesia, 2011,Annual Report of Indonesian Islamic Banking,
available from www.bi.go.id, access date : December, 25 th
Bank Indonesia, 2010, Islamic Banking Statistics, Direktorat Perbankan
Syariah, Desember
Bank Indonesia, 2009, Islamic Banking Statistics, Direktorat Perbankan
Syariah, Desember
Bank Indonesia, 2008, Islamic Banking Statistics, Direktorat Perbankan
Syariah, Desember
Bank Indonesia, 2007, Islamic Banking Statistics, Direktorat Perbankan
Syariah, Desember
Bank Indonesia, 2006, Islamic Banking Statistics, Direktorat Perbankan
Syariah, Desember
Bank Indonesia, 2005, Islamic Banking Statistics, Direktorat Perbankan
Syariah, Desember
Brooks, C., 2002, Introductory Econometrics For Finance , Cambridge
University Press
Chimobi, Omoke Philip and Ugwuanyi Charles Uche, 2010. “Money,
Price and Output:ACausalityTest for Nigeria”, American Journal
of Scientific Research, ISSN 1450-223X Issue 8 : 78-87
Dornbusch, Rudigner andAlejandro Reynoso, 1989,”Financial factors
in Economic Development”, American Economic Review,Vol.79.
no.2 : 204-209
Ebrahim, M. Shahid and Tan Kai Joo, 2001,”Islamic banking in Brunei
Darussalam”, International Journal of Social Economics, Vol.
28,No.4 : 314-337
Elhiraika, Adam B. 1998.Macroeconomic Instability,Financial
Repression And Islamic Banking In Sudan, IIUM Journal of
22. 46 ж AN-NISBAH, Vol. 01, No. 01, Oktober 2014
Imam Mukhlis: Interaction of Islamic Banking........
Economics&Management6,no.2:61-85
Fry,MaxwellJ.1995.Money,Interest,andBankinginDevelopmentEconomic,
John HopkinsUniversityPress.London
Foresty, Pasquale, 2006. Testing for Granger Causality between Stock Prices
and Economic Growth, Paper, MPRAPaper No. 2962, Online at http://
mpra.ub.uni-muenchen.de/2962/
Furcony, Havas and Ratna Mulyani, 2009,IslamicBanking and Economic
Growth : empirical Evidence from Malaysia, Journal of Economic and
Development,Vol.30,No.2:59-74
Jalil, Abdul and Ying Ma, 2008. “Financial development and economic
Growth :Time series Evidence Form pakistan And China”, Journal Of
Cooperation,29,2:29-68
Karim, M. Abd, Mohd Harif A., and Adziz A.,2007, “Monetary Policy and
Sectoral Bank Lending in Malaysia”, Global Economic Review, 35(3),
303-326
Khan, Mohsin S and Abbas Mirakhor, 1989. “The Financial System and
Monetary Policy in an Islamic Economy”, JKAU: Islamic Econ., Vol.
1:39-57
Levine,KingandRossLevine,1993,”FinanceandGrowth:SchumpeterMight
beRight”,QuartelyJournalofEconomics,Vol.CVIII,Agustus:716-737
Rajan,R.G.andZingales,L.,2003.SavingCapitalismfromCapitalist,Crown
Business, NewYork
Stiglitz, Joseph. 1998. “The Role of the Financial System in Development”,
Paper presented at the 4thAnnual Bank Conference on Development in
LatinAmericaandtheCaribbean,June29
Timberg, Thomas A, 2012. “Risk Management : Islamic Financial Policies
IslamicBankingandItsPotentialImpact”,papers,http://www.ruralfinance.
org/fileadmin/templates/rflc/
Thomas,R.L.,1997,ModernEconometrics:anIntroduction,AddisonWesley,
NewYork
Vuranok, Selda 2009. “Financial developmment And Economic Growth :
A Cointegration Approach”, Article, Middle East Technical University,
University Institute of Applied Mathematics, Financial Mathematics,
February