Journal of Banking and Social Equity (JBSE)

Evaluating Sukuk Investment Intentions from A Social Cognitive Perspective: The case of Pakistan

Husnain Ahmed, Shazia Afzal — Fri, 30 Jun 2023 00:00:00 +0000

This research study was conducted to understand the influence of compatibility, internal influence, external influence, extrinsic motivation, and intrinsic motivation in the determination of intention to invest in Sukuk with the moderating role of religious aspect in the case of Pakistan. This research study is based on a quantitative approach with the collection of primary responses as data set for the current research. Using the quantitative approach, the study selected the explanatory process to understand the impact of compatibility, internal influence, external influence, extrinsic motivation, and intrinsic motivation in the determination of intention to invest in Sukuk for Pakistan with the moderating role of the religious factor. The population targeted under the current investigation belongs to the Islamic banking profession having job experience with Islamic banks in Pakistan. The study was selected with a convenience sampling technique and estimated with a sample size of 300 for response collection at a 95 percent Confidence interval. This study adopted a survey method to collect the required number of responses and used a questionnaire as a data collection instrument. Structural equation modeling using smart PLS was selected as a statistical technique for investigation purposes. Results revealed that compatibility, internal influence, external influence, and extrinsic motivation are essential variables in the determination of intention to invest in Sukuk. The study's originality stems from the fact that Sukuk is a relatively new area of research in Pakistan and has yet to be extensively studied through the social cognitive perspective earlier.

The Impact of Mıcrofınance on Poverty Allevıatıon and Women Empowerment

Amna Zafar — Fri, 30 Jun 2023 00:00:00 +0000

The focus is on bringing people out of poverty and empowering women through microfinance and financial inclusion, as these are the issues that are most prevalent and need laser focus. The data is gathered using a questionnaire. It was distributed to four microfinance banks in Bahawalpur which are FINCA, FMFB, NRSP, and Khushhali Bank to get the perspective of women. The results show a significantly positive relationship between microfinance and poverty alleviation and microfinance and women empowerment. This confirms that microfinance is indeed what is required to bring people out of poverty and for improving the empowerment of women. GBV and WE have a significantly negative relationship. When gender-based violence increases women’s, empowerment decreases and vice versa. It was also seen that gender-based violence has no significant impact on poverty alleviation. Financial inclusion as a moderator had a significant impact on the relationship between gender-based violence and women’s empowerment. This means that even if gender-based violence increases if women are financially included then they will still have increased empowerment. Thus, it can be concluded that financial freedom goes a long way in making women feel like they are equal like they have autonomy, and freedom to make choices.

Creation of Cash Waqf in Sri Lanka: Lessons from Turkey’s Experience

Muhammed Buhary Muhammed Thabith, Nor Asiah Mohamad, Zaid Khaliq — Sun, 23 Jul 2023 00:00:00 +0000

In recent years, cash Waqf has gained recognition throughout the Muslim world as a highly efficacious mechanism for achieving socio-economic objectives. Cash Waqf is a financial instrument that facilitates the provision of funds for a diverse range of products and services across numerous countries, both within and outside the Muslim world. In Muslim minority communities, Waqf can be used creatively that changes and adapts to the needs of the community. Under the Sri Lankan Waqf Act, there are no provisions providing for cash Waqf to develop and maintain the Waqf property or use it to provide socio-economic and other services that benefit the society. This research examines the prospects for cash Waqf under the Waqf Act, as well as the problems and difficulties associated with its establishment. This research utilizes a doctrinal analysis, which involves both primary and secondary sources of information, such as statutes, practices, case laws, and reports. This study sought some lessons from Turkey’s experience. The findings show that innovative cash Waqf initiatives play significant roles in socio-economic development even in Muslim minority countries. The establishment and recognition of cash Waqf will effectively help to develop dormant and undeveloped Waqf property while sustaining the socioeconomic situation. The Waqf board will have financial independence in managing Waqf properties in Sri Lanka.

The Rise of Shariah FinTech: A Game-Changer for Islamic Financial Inclusion in Pakistan

Rashid Hayat — Fri, 30 Jun 2023 00:00:00 +0000

Unsatisfactory level of financial inclusion plays a crucial role in economic development of Pakistan, and it can indeed lead to various economic issues. The objective of this study is to examine the role of Shariah FinTech diffusion for Islamic FI in Pakistan. This study adopted a cross-sectional research design. Data collection was carried out by using survey questionnaire from the clients of financial institutions such as Islamic banks in Pakistan. 170 valid responses were used to examine the effect of Shariah FinTech diffusion on Islamic FI. PLS-SEM was carried out to examine the relationship between variables. It is observed that Shariah FinTech diffusion has central importance to promote Islamic FI in Pakistan. Increase in the rate of Shariah FinTech adoption can increase the level of Islamic FI. This study has valuable insights for the policymakers to promote the level of Islamic FI in Pakistan.

Pool Management Practices of Islamic Banks and Their Impact on Profitability

Husnain Ahmed, Shazia Afzal — Fri, 30 Jun 2023 00:00:00 +0000

The purpose of this paper aims to investigate the impact of pool management practices of Islamic banks in terms of multiple pool management, liquidity management practices, use of alternative contracts, risk mitigation, and input of alternative functions along with its impact on the profitability of Pakistan through moderating function of profit smoothening. This study is primary in nature and has selected a quantitative research approach based on a review of the literature. The study has selected an explanatory research procedure to examine the impact of selected independent variables on the profitability of Islamic banks in Pakistan through moderating input of profit smoothening. The targeted population of the current study is Islamic banking professionals working in different departments of Islamic banks. The current study has selected multi-variate regression techniques for current study along with descriptive statistics and Pearson correlation. The relative impact of the use of alternative contracts was found higher on the profitability of Islamic banks followed by multiple pool management, portfolio risk, and profit smoothening in the case of Islamic banks in Pakistan.

The Impact of Customer Trust on the Relationship between Religious Values and Adoption of Islamic Banking

MUHAMMAD MADNI, Muhammad Murad, Rana Zahid Hafeez, Muzamil Shahzad — Fri, 30 Jun 2023 00:00:00 +0000

This study investigated how managers in Islamic banks in Pakistan saw Islamic banking in connection to their own religious beliefs, customer trust, and other factors. The study's goal was to comprehend how managers' decisions to use financial services and products that adhere to Sharia law are influenced by their religious beliefs and how customer trust affects this relationship. Data was gathered using a quantitative research design, and it came from 146 managers of Islamic banks who responded to standardized surveys. Islamic banking acceptance, customer trust, and customer value measures were all included in the poll. To investigate the connections between the variables, descriptive statistics, and regression analysis were performed. The findings showed a strong positive correlation between managers' acceptance of Islamic banking and their religious principles. Sharia-compliant financial services were more likely to be adopted and promoted by managers with greater Islamic views. Additionally, the adoption of Islamic banking was further influenced by client trust, which appeared as a key moderator. The results underline how crucial it is for customers' trust and religious beliefs to influence managers' adoption of Islamic banking. The favorable influence of religious values on adoption decisions is strengthened by increasing consumer trust in Islamic financial institutions. This study contributes to a greater knowledge of the management perspective within the business and offers insightful information about the elements influencing the development of Islamic banking in Pakistan.