Islamic Banks and Its Role in Reducing Poverty
Keywords:
Poverty, Financing, Islamic Bank
Poverty, Financing, Islamic Bank
Abstract
This study aims to analyze the effect of financing disbursed by Islamic banks on reducing the poverty rate in Indonesia. This study used timeseries data tested using multiple linear regression analysis. Sharia bank financing data was obtained from Sharia Banking Statistics by the Financial Services Authority and poverty data in Indonesia obtained from BPS was used in this study. The results showed that murabahah has an effect on reducing the poverty rate, while the greater distribution of mudharabah financing has an impact on increasing poverty, and the existence of musyarakah financing has no effect on poverty in Indonesia at all.
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References
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Tohirin, A., & Husaini, F. (2019). Does Islamic Banking Financing Help the Poor? Proceeding of The 3rd International Conference on Accounting, Business & Economics (UII-ICABE 2019), 41–50.
Yahaya, M. H., & Ahmad, K. (2018). Financial inclusion through efficient zakat distribution for poverty alleviation in Malaysia: Using fintech & mobile banking. Proceeding of the 5th International Conference on Management and Muamalah, 15–31.
Ayu, P., Rifa’i, A., & Listiono. (2019). Encouraging Islamic Financing to Achieve SDGs through Poverty Alleviation | Journal of Islamic Finance. Journal of Islamic Finance, 8(2), 10–20. https://journals.iium.edu.my/iiibf-journal/index.php/jif/article/view/357
Baber, H., & Zaruova, C. (2018). Religion and banking: A study of Islamic finance in India. The Journal of Industrial Distribution & Business, 9(6), 7–13.
Banna, H., Hassan, M. K., & Alam, M. R. (2020). Digital financial inclusion, Islamic banking stability and sustainable economic growth. Islamic Perspective for Sustainable Financial System, 131–152.
Begum, H., Alam, A. S. A. F., Mia, M. A., Bhuiyan, F., & Ghani, A. B. A. (2019). Development of Islamic microfinance: a sustainable poverty reduction approach. Journal of Economic and Administrative Sciences, 35(3), 143–157. https://doi.org/10.1108/JEAS-01-2018-0007
Beik, I. S., & Arsyianti, L. D. (2017). Ekonomi Pembangunan Syariah (1st ed.). Rajawali Pers.
Febianto, I., Johari, F. B., & @Zulkefli, Z. B. K. (2019). The Role of Islamic Microfinance For Poverty Alleviation in Bandung, Indonesia. Ihtifaz: Journal of Islamic Economics, Finance, and Banking, 2(1), 55. https://doi.org/10.12928/ijiefb.v2i1.736
Ghozali, I. (2011). Aplikasi Analisis Multivariat dengan Program IBM SPSS 19. Badan Penerbit Universitas Diponegoro.
Ginanjar, A., & Kassim, S. (2020). CAN ISLAMIC MICROFINANCE ALLEVIATES POVERTY IN INDONESIA? AN INVESTIGATION FROM THE PERSPECTIVE OF THE MICROFINANCE INSTITUTIONS. Journal of Islamic Monetary Economics and Finance, 6(1). https://doi.org/10.21098/jimf.v6i1.1203
M. Anwar, S., Junaidi, J., Salju, S., Wicaksono, R., & Mispiyanti, M. (2020a). Islamic bank contribution to Indonesian economic growth. International Journal of Islamic and Middle Eastern Finance and Management, 13(3), 519–532. https://doi.org/10.1108/IMEFM-02-2018-0071
M. Anwar, S., Junaidi, J., Salju, S., Wicaksono, R., & Mispiyanti, M. (2020b). Islamic bank contribution to Indonesian economic growth. International Journal of Islamic and Middle Eastern Finance and Management, 13(3), 519–532. https://doi.org/10.1108/IMEFM-02-2018-0071/FULL/PDF
Mia, M. R., Hasnat, M. A., & Mahjabeen, W. (2016). Mudharabah and musharakah from the accounting perspective by referring to AAOIFI, IFRS and MFRS. IOSR Journal of Business and Management, 18(7), 67–72.
Mohamed, E. F., & Fauziyyah, N. E. (2020). Islamic microfinance for poverty alleviation: A systematic literature review. International Journal of Economics, Management and Accounting, 28(1), 141–163.
Nugroho, L., Mastur, A. A., Harnovinsah, H., & Aryanti, W. (2020). The Contribution of Islamic Bank in Poverty Alleviation. Al-Ahkam, 30(1), 19. https://doi.org/10.21580/ahkam.2020.30.1.5387
Rassanjani, S. (2018). Ending Poverty: Factors That Might Influence the Achievement of Sustainable Development Goals (SDGs) in Indonesia. Journal of Public Administration and Governance, 8(3), 114. https://doi.org/10.5296/jpag.v8i3.13504
Rifa’i, A., & Ayu, P. (2019). Encouraging Islamic Financing to Achieve SDGs through Poverty Alleviation. Journal of Islamic Finance, 8(2), 10–20.
Salisu, Y., Mohammed, A. I., & Yakub, A. M. (2017). THE MEDIATING EFFECT OF MURABAHAH FINANCE ON THE RELATIONSHIP BETWEEN FARM LAND, FARM INFRASTRUCTURE AND AGRICULTURAL OUTPUT IN NIGERIA. International Journal of Management Research and Reviews, 7(12), 1080–1089.
Sapuan, N. M. (2016). An Evolution of Mudarabah Contract: A Viewpoint From Classical and Contemporary Islamic Scholars. Procedia Economics and Finance, 35, 349–358. https://doi.org/10.1016/S2212-5671(16)00043-5
Shaikh, Z. H., & Mohanty, M. K. (2017). Shariah Finance for Poverty Reduction in Muslim World. International Business Management, 11(3), 754–760. https://doi.org/10.36478/ibm.2017.754.760
Siddique, M. A., Haq, M., & Rahim, M. (2020). Enhancing Financial Inclusion through Islamic Finance, Volume II: Vol. II (A. Elzahi Saaid Ali, K. M. Ali, & M. Hassan Azrag, Eds.). Springer International Publishing. https://doi.org/10.1007/978-3-030-39939-9
Tamanni, L., & Haji Besar, M. H. A. (2019). Profitability vs Poverty alleviation: has banking logic influences Islamic microfinance institutions? Asian Journal of Accounting Research, 4(2), 260–279. https://doi.org/10.1108/AJAR-05-2019-0039
Tohirin, A., & Husaini, F. (2019). Does Islamic Banking Financing Help the Poor? Proceeding of The 3rd International Conference on Accounting, Business & Economics (UII-ICABE 2019), 41–50.
Yahaya, M. H., & Ahmad, K. (2018). Financial inclusion through efficient zakat distribution for poverty alleviation in Malaysia: Using fintech & mobile banking. Proceeding of the 5th International Conference on Management and Muamalah, 15–31.
Published
2023-02-25
How to Cite
SaputriP. L., & ZamrudiM. (2023, February 25). Islamic Banks and Its Role in Reducing Poverty. Journal of Economic, Management, Accounting and Technology, 6(1), 73-81. https://doi.org/https://doi.org/10.32500/jematech.v6i1.3772
Section
Articles
