Al-bank: Journal of Islamic Banking and Finance

The Role Of Islamic Banks In Increasing The Financial Inclusion Of The People Of Panyabungan City, Mandailing Natal District

Jureid Jureid, Syukri Iska — Mon, 14 Jul 2025 00:00:00 +0700

Islamic banking in Indonesia has grown significantly, but its services remain unevenly distributed, especially in rural areas like Mandailing Natal Regency, where only 30% of residents access formal financial services (BPS, 2023). This study examines the role of Islamic banks in improving financial inclusion in Panyabungan City. Using a quantitative method and 100 respondents, data were collected via structured questionnaires and analyzed with PLS-SEM. Results show that financial literacy (β = 0.422; p = 0.000) and perception of Islamic banks (β = 0.493; p = 0.000) significantly affect financial inclusion, with R² = 0.647. Despite high account ownership, digital service use and financing remain low. Findings underscore the importance of strengthening financial literacy and expanding access to Islamic digital banking. Recommendations include targeted financial education and outreach strategies to enhance service utilization in underserved regions

Falah Profit of Sharia Rural Banks in West Sumatra: Impact of Funding and Financing

Mon, 14 Jul 2025 00:00:00 +0700

This study aims to examine the influence of funding and financing activities—specifically Mudharabah Savings, Mudharabah Deposits, and buying and selling transactions on the Falah Profit of Sharia Rural Banks (BPRS) in West Sumatra over the period from 2015 to 2023. Employing a descriptive quantitative methodology with panel data regression analysis, secondary data were collected from the official financial reports published on the OJK website, involving a purposive sample of 38 banks. The analysis reveals that both Mudharabah Savings and Mudharabah Deposits have a positive and statistically significant influence on Falah Profit, with regression coefficients indicating that an increase in these funding sources is associated with higher profitability. Conversely, buying and selling activities exhibit a positive but statistically insignificant effect on Falah Profit, suggesting a less direct impact in this context. The combined impact of these variables explains approximately 82.68% of the variation in Falah Profit, illustrating their substantial role in shaping bank performance. These findings imply that strategic enhancement of Mudharabah-based funding mechanisms can effectively boost profitability, contributing to the stability and growth of Sharia banking institutions in the region. The study thus emphasizes the importance of Islamic financial products and funding schemes in driving sustainable bank performance aligned with Sharia principles

Pengaruh Kompetensi dan Persepsi Mahasiswa Terhadap Fresh Graduate Syndrom Untuk Bekerja di Perbankan Syariah

Nita Fitria, Widia Lestari, Husni Shabri, Rizal Fahlefi — Mon, 14 Jul 2025 00:00:00 +0700

This research aims to determine the influence of competence and perception on fresh graduate syndrome working in sharia banking for students of the Sharia Banking Study Program at UIN Mahmud Yunus Batusangkar. The type of research used is quantitative research with data collection techniques using questionnaires. The results of this research show that the competency of sharia banking alumni influences fresh graduate syndrome working in sharia banking. Students need to develop various relevant competencies during the study period to minimize the impact of the syndrome of working in sharia banking. Competencies that new graduates must have include mastery of sharia banking knowledge, technical banking skills, financial analysis skills. Apart from increasing competence, forming a positive perception of the sharia banking industry also plays an important role in preparing students to face the world of work. Simultaneously, the competence and perception of Islamic banking alumni at the State Islamic University Mahmud Yunus Batusangkar influence the fresh graduate syndrome working in sharia banking. By combining competency development and forming positive perceptions, students will be ready to face the challenges of the world of work and can reduce the risk of fresh graduate syndrome and increase opportunities for career success in the sharia banking industry

Determinants of Return on Equity in Sharia Bank in Indonesia

Muhammad Apis Daulay, Desmi Satriana, Misnen Ardiansyah — Thu, 31 Jul 2025 00:00:00 +0700

This study examines the influence of several financial indicators Firm Size, BOPO, NOM, DER, FDR, DPK, NPF, and CAR on Return on Equity (ROE) in Indonesian Sharia Banks from 2013 to 2022. Using a quantitative approach with secondary data sourced from the Financial Services Authority (FSA) and banks’ annual reports, the study employed panel data regression with model selection among Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM). The REM was identified as the most suitable model. The results reveal that NOM and DPK have a positive and significant impact on ROE, while BOPO, DER, and NPF negatively and significantly affect ROE. These findings offer insights into optimizing financial strategies in Islamic banking in Indonesia

Analisis Penerapan Etika Bisnis Islam Dan Pembiayaan Mikro Syariah Dalam Mendukung Perkembangan UMKM

Mulia Syahfitri, Nurul Jannah, Rahmi Syahriza — Thu, 31 Jul 2025 00:00:00 +0700

This study aims to examine the application of Islamic business ethics and the utilization of Islamic microfinance in fostering the development of bakso (meatball) micro, small, and medium enterprises (MSMEs) in Deli Tua District. Adopting a descriptive qualitative approach, data were collected through observation and semi-structured interviews with six bakso shop owners selected via purposive sampling. The data were analyzed using the Miles and Huberman framework, encompassing data reduction, data display, and conclusion drawing. The findings reveal that the implementation of Islamic business ethics—particularly honesty and social responsibility—significantly enhances customer loyalty and strengthens business image. Furthermore, Islamic microfinance based on murabahah contracts contributes to increasing production capacity and improving business facilities. The synergy between ethical practices and Islamic financing not only reinforces business reputation but also facilitates access to Sharia-compliant funding. The study suggests that integrating ethical values with Islamic financial mechanisms can serve as an effective strategy for promoting sustainable MSME growth

The Impact of Capital Adequacy, Financing Risk, and Profitability on the Market Share of Islamic Banks in Indonesia

Taufiq Ridwan Murtadho, Ade Ponirah, Nendi Nur Hidayat, Gina Sakinah — Thu, 31 Jul 2025 00:00:00 +0700

This study aims to analyze the effect of the Capital Adequacy Ratio, Net Non-Performing Financing, and Return on Assets on the market share of Islamic Commercial Banks in Indonesia. Market share is measured as the percentage of Islamic Commercial Banks assets relative to total national banking assets. The study employs a quantitative approach using multiple linear regression analysis with quarterly aggregate data of Islamic Commercial Banks from Q1 2010 to Q4 2024. Data were obtained from the Islamic Banking Statistics published by the Financial Services Authority. The results reveal that Capital Adequacy Ratio and Net Non-Performing Financing significantly influence market share, while Return on Assets does not. Simultaneously, the three variables significantly affect market share with a coefficient of determination of 70.4%. These findings highlight that capital adequacy and financing quality are the primary factors driving the competitiveness of BUS, while profitability Return on Assets does not have a direct impact on market share expansion

Pengaruh Reward dan Punishment terhadap Kinerja Karyawan Bank Syariah di Sumatera Barat

Gampito, Revi Candra, Elfadhli — Thu, 31 Jul 2025 00:00:00 +0700

This study aims to analyze the effect of reward and punishment on the performance of Islamic bank employees in West Sumatra. Reward is measured through job promotion and bonus, while punishment is measured through demotion and mutation. This research employed a quantitative approach using a survey method with questionnaires distributed to employees of Islamic banks in West Sumatra. The data were analyzed using multiple linear regression. The findings reveal that job promotion, bonus, and demotion have a positive and significant effect on employee performance, while mutation does not have a significant effect. Simultaneously, reward and punishment significantly influence employee performance. These results highlight the importance of implementing a transparent and fair reward and punishment system to improve employee performance in Islamic banking institutions. The implication of this study suggests that Islamic banks should strengthen policies related to promotion and bonus distribution, while carefully reviewing the effectiveness of employee mutation to avoid potential negative impacts on performance. In addition, the findings provide academic insight into human resource management practices within Islamic banking and can serve as a reference for future research