Yıl 2017, Cilt 4 , Sayı 3, Sayfalar 276 - 286 2017-09-30

A COMPARISON BETWEEN MALAYSIA AND INDONESIA IN ISLAMIC BANKING INDUSTRY

Atikullah Abdullah [1]


Purpose-  This paper aims to compare Malaysia and Indonesia in terms of current circumstances in the Islamic banking industry. This is very interesting because of several factors. Firstly these two countries are neighbors. Secondly, both countries have expressed their aspiration to be the center for the Islamic banking industry not only in the region but also in the world. Thirdly, both countries have significant differences in demographics and economic conditions. It is therefore very interesting to see which country is in a better position than other in the Islamic banking industry at present. This will help researchers to predict which country will achieve the target first if it occurs. Methodology- The comparison will focus on five selected items in Islamic banking institutions ie legal framework, court jurisdiction, capital growth, products offered and shariah governance. For legal frameworks, court jurisdiction and shariah governance analysis will be made on the basis of provisions in legislations and statutes in both countries. Comparison of the products offered will be analyzed based on the list of products and the amount involved. However, since profit sharing activities are regarded as a key feature of an Islamic banking system as argued by many authoritative scholars in this area, the involvement of Islamic banking institutions in profit sharing based products in both countries will be the main focus in the analysis. Capital growth is chosen because according to Sula (2011) the development of a bank, should be seen from the market share because the market share reflects the portion from the sale of industrial goods or services carried out by an industry. Prior to that, Shaffer (1993) reported that market share is important, because it reflects the performance associated with bank's competitive position in the banking industry.  

Findings- The study shows that although both countries are making good progress in the Islamic banking industry, no country is far ahead of another. While Malaysia is ahead of Indonesia in some items, Indonesia is ahead of Malaysia in some other items.

 Conclusion- This paper concludes that both countries have advantages and disadvantages of others in the Islamic banking industry. Hence both should overcome their weaknesses and continue to build from their strengths to make their aspirations a hub in the Islamic banking industry as a reality  

Islamic banking, shariah compliance, Indonesia, Malaysia, banking industry
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Konular Sosyal
Bölüm Articles
Yazarlar

Yazar: Atikullah Abdullah

Tarihler

Yayımlanma Tarihi : 30 Eylül 2017

Bibtex @araştırma makalesi { rjbm360043, journal = {Research Journal of Business and Management}, issn = {}, eissn = {2148-6689}, address = {}, publisher = {PressAcademia}, year = {2017}, volume = {4}, pages = {276 - 286}, doi = {10.17261/Pressacademia.2017.705}, title = {A COMPARISON BETWEEN MALAYSIA AND INDONESIA IN ISLAMIC BANKING INDUSTRY}, key = {cite}, author = {Abdullah, Atikullah} }
APA Abdullah, A . (2017). A COMPARISON BETWEEN MALAYSIA AND INDONESIA IN ISLAMIC BANKING INDUSTRY. Research Journal of Business and Management , 4 (3) , 276-286 . DOI: 10.17261/Pressacademia.2017.705
MLA Abdullah, A . "A COMPARISON BETWEEN MALAYSIA AND INDONESIA IN ISLAMIC BANKING INDUSTRY". Research Journal of Business and Management 4 (2017 ): 276-286 <https://dergipark.org.tr/tr/pub/rjbm/issue/32378/360043>
Chicago Abdullah, A . "A COMPARISON BETWEEN MALAYSIA AND INDONESIA IN ISLAMIC BANKING INDUSTRY". Research Journal of Business and Management 4 (2017 ): 276-286
RIS TY - JOUR T1 - A COMPARISON BETWEEN MALAYSIA AND INDONESIA IN ISLAMIC BANKING INDUSTRY AU - Atikullah Abdullah Y1 - 2017 PY - 2017 N1 - doi: 10.17261/Pressacademia.2017.705 DO - 10.17261/Pressacademia.2017.705 T2 - Research Journal of Business and Management JF - Journal JO - JOR SP - 276 EP - 286 VL - 4 IS - 3 SN - -2148-6689 M3 - doi: 10.17261/Pressacademia.2017.705 UR - https://doi.org/10.17261/Pressacademia.2017.705 Y2 - 2019 ER -
EndNote %0 Research Journal of Business and Management A COMPARISON BETWEEN MALAYSIA AND INDONESIA IN ISLAMIC BANKING INDUSTRY %A Atikullah Abdullah %T A COMPARISON BETWEEN MALAYSIA AND INDONESIA IN ISLAMIC BANKING INDUSTRY %D 2017 %J Research Journal of Business and Management %P -2148-6689 %V 4 %N 3 %R doi: 10.17261/Pressacademia.2017.705 %U 10.17261/Pressacademia.2017.705
ISNAD Abdullah, Atikullah . "A COMPARISON BETWEEN MALAYSIA AND INDONESIA IN ISLAMIC BANKING INDUSTRY". Research Journal of Business and Management 4 / 3 (Eylül 2017): 276-286 . https://doi.org/10.17261/Pressacademia.2017.705
AMA Abdullah A . A COMPARISON BETWEEN MALAYSIA AND INDONESIA IN ISLAMIC BANKING INDUSTRY. RJBM. 2017; 4(3): 276-286.
Vancouver Abdullah A . A COMPARISON BETWEEN MALAYSIA AND INDONESIA IN ISLAMIC BANKING INDUSTRY. Research Journal of Business and Management. 2017; 4(3): 286-276.