Crptocurrency is a type of digital currency that using decentralized method for validating transaction. In the same time, the user of the Bitcoin is protected using hash algorithm. The value of Bitcoin is increased sharply in 2017 that creates much attention from investors. The objective of this study is to develop the mathematical model evaluate growth of Bitcoin exchange rate. The data selected in this study are starting from 1st January 2017 until 10th December 2017. This study validates the normality distribution of data using graphical and numerical method. Graphical method indicates the first difference of data distribution is a non-normal distribution. Then, Shapiro-Wilk statistical test confirmed that first difference of data distribution deviate from normal distribution. The non-normal distribution occurs because of the presence of outliers. Next, this study validates the mathematical modeling fordata trend using quadratic formula. Result indicates that the growth of Bitcoin exchange rate in moving towards non-equilibrium point. This concludes that the growth of the Bitcoin exchange rate is in unstable region. The contribution of this study is to help investors to understand the nature of Bitcoin exchange rate. This study performed analysis that helps investors to develop more efficient investment portfolio in gaining better profit and reducing loss
Sunday C. Eze, Adenike O. Bello, Tolulope A Adekola
An organization can be likened to a building whose strength is determined by the structure and frames which holds it. The structure is the manner in which interrelated elements (resources) are arranged so that the building can be stable, resist stress and it provides the right form. To this end, for the performance of an organization to be effective, it is important to understand the right manner in which interrelated elements (structure) in the specific organization is arranged. To measure the performance of the organization, dependent variables such as sales, profit, and customer satisfaction will be considered. Also, the study utilized independent variables centralization and formalization organizational structures. This is to show the effects of the dependent variables on the independent variable. The research adopted quantitative design and applied mono method which brought about numerical data generated from questionnaire administered. The population of this study comprises of all staff of Covenant Micro Finance Bank as well as the customers of the banks. Total sum of 354 sample size comprising of both employees (51) and customers (303) of Covenant Micro Finance Bank is the sample size. The propositions assumed for this study are that: there is no relationship between organizational centralization and organizational customer satisfaction, there is no relationship between organizational centralization and organizational profit, there is no relationship between organizational formalization and organizational customer satisfaction and that there is no relationship between organizational formalization and organizational profit. Also, among the secondary data collected are views of various management researchers. As a result of the primary and secondary data collected, the study recommends that organizations should adopt decentralization structure and reduce formalization in the work place.
Open access
Islamic Finance and Banking Studies
Organizational Leadership and Management Strategies
Numerous studies ranging from concept papers and reviews were conducted on the matter of blockchain and digital currencies. However, those two areas are not well researched due to its being a new area of research. Furthermore, the research on blockchain applications in the Islamic financial system precisely the potential of digital currency in providing a better alternative to current fiat money system which will be the scope of this article. The aim of revolves around exploring the potential and capability of introducing a digital currency that fulfills the Islamic law (Shari’ah) functions of money and provides a more stable currency than fiat money. The method used for analyzing this object includes a library research on related topics that helps understanding the functions of money and digital currencies and study of several cases that can assist in fulfilling the objectives of this paper in introducing an Islamic digital currency through detailed research of Islamic theory of money and civilization as well as the developments of blockchain, our findings point towards the ability of introducing a Shari’ah-compliant digital currency if all the issues on validity are addressed and resolved. However, the area of digital currencies and blockchain requires further research from a Shari’ah perspective to facilitate a better understanding on the topic.
<p><strong>Abstract </strong></p><p>In Indonesia, <em>bitcoin</em> is a form of digital currency (<em>e-money</em>) and means of payment transactions that have been used by some communities. It is necessary to get attention, especially from Bank Indonesia. Other than that, the supervision that was once fully done by the central bank of Bank Indonesia, is now taken over by OJK (Otoritas Jasa Keuangan). Thus, Bank Indonesia only has the authority to regulate and control the circulation of currency only. Since some of the tasks and authorities of Bank Indonesia were taken over by OJK (Otoritas Jasa Keuangan), many things have not been covered, such as the new phenomenon in the field of finance in terms of capital, investment, currency circulation, and others. In addition there is no legal umbrella against <em>bitcoin</em>, which is increasingly widespread transaction using <em>bitcoin</em> done in <em>e-commerce</em> transactions. So in terms of security also need to be questioned, therefore there needs to be regulation and supervision specifically against <em>bitcoin</em>, and society will not feel harmed. When viewed in the perspective of Islamic law, that relating to the issuance of money as a means of transactions in a country, is a matter protected by general rules in Islamic law. Therefore, the issuance of money and the determination of the amount is matters relating to the benefit of the people. Another aspect to consider in the use of <em>bitcoin</em> is whether from the side of <em>madharat</em> is greater or benefits taken if used as currency and tool transactions, even as a commodity though. So the focus in this research is the use of <em>bitcoin</em> as currency and transaction tool by using approach and study of Islamic law.</p>
With recent alarm and focus on Bitcoin , many researchers tried to come up with studies that are related to Bitcoin. This paper tries to do the same but with a focus on the area of Islamic finance. We try to relate Bitcoin and Islamic index to find if there is any relation between these two assets and to find which will stand out if they are put in one portfolio. Since both assets are deemed to be of high risk in nature, it is an interesting topic to be investigated especially if they are put together. This analysis was carried out using the standard time-series approach of cointegration, VECM and VDC. The empirical results evidenced that Bitcoin and Islamic index are theoretically related as they are cointegrated. Another interesting finding in this study unveiled that Islamic index will be more influential than Bitcoin if they are put in one portfolio.
A. Seetharaman, A. Saravanan, Nitin Patwa, Jigar Mehta
In an era of technology advancement when the entire world is talking about the “Internet of Things” whereby we are expected to have connectivity between anything and everything, Currency cannot be left behind. Paper currency is bound to be a thing of past, as virtual currencies will start taking over and Bitcoin is well poised to achieve this feat. Not only it will revolutionize the way payments are made, but also have potential to impact the future of world currencies like USD, which is already facing challenges from EURO or Chinese Yuan Renminbi (CNY). The rise of crypto-currencies will add a new dimension to this challenge for US Dollar (USD)The focus of this study is to understand multiple factors which are translating Bitcoin (BTC) that is gaining momentum in various fields of global finance and how disruptive it can be, including replacing main fiat currencies in the financial system impacting mainly USD. The key variables studied are Regulation or lack of it around Bitcoin, Bitcoin Technology, Bitcoin Economy and the usage of Bitcoin as a Currency. This research used the latest statistical tool ADANCO 1.1.1 by Henseler and Dijkstra (2015) to analyze the data collected by building a partial least squares structural equation model (PLS-SEM). The observations of this study will help understand the future of global finance from multiple standpoints, especially Regulation, Cryptocurrencies and the fiat currencies.
Digital currency platforms such as Bitcoin, Ethereum, and Ripple are slowly but surely revolutionizing trade and commerce alongside their potential to impact people's economic lifestyles immensely. Digital currencies present a unique medium for humanitarian, mission, and more notoriosly arms and terrorism transactions around the globe. Various factors like security, legislature, and infrastructure affect the viability of adopting digital currencies in developing countries such as Zimbabwe. The research study assesses whether this technology's shortcomings outweigh the conventional means of exchange: hard cash, gold, and checks. Therefore, aiding stakeholders in making informed decisions concerning interfacing technology with economics in the developing world.
The study attempted to investigate how leadership can be used to combat corruption in decentralized governance structures of Ghana. In conducting the study, purposive sampling technique was employed to select key officials of GA south municipal assembly whose duties often promote corrupt practices. The questionnaire technique was the research instrument while a statistical package for social science was used to facilitate the analysis of data captured from the field. Findings of the study noted that under invoicing, over invoicing, payment for works not done among others are serious corrupt practices prevailing within the decentralized grassroots governance structures. It also came to light that political interference, appointing political operatives to key positions in governance units all promotes corrupt practices. The study noted that if political interference can be removed in the administration of these decentralized structures, effective leaders who are mainly technocrats can offer sound management framework for carrying out the developmental agenda of these decentralized structures. The study called on government of African countries to endeavour to finance the activities of political parties so as to remove the need for amassing wealth through fair or foul means for strengthen political structures to win elections. Strong leaders are required towards combating corruptions, however there is the need to ameliorate completely the effect of political interference in the administration of decentralized governance structures.
After the global financial crisis 2008, the world has been putting more effort in tightening banking and financial activities with stricter regulations. However, the effectiveness of this policy has remained controversial as many people believe that policy makers should promote freedom and transparency by empowering the public to directly interfere and change the system for public interest. This article attempts to synthesize and analyze available information with a focus on the role of blockchain, a financial tool that can potentially play an important role in the sustainable development of the global economy. The new technology is expected to bring massive benefits to consumers, to current banking system and to the whole society in general.
Fear of a creeping Islamization of the “West” and its secular legal and constitutional orders has fueled debates on immigration in the media and politics for several years. With the ascent of the so-called “Islamic State” and the horrific terror attacks it claimed or inspired, as well as the waves of refugees from Muslim-majority countries reaching European shores, debates have further intensified. They are turning increasingly populist, further feeding the flames of fear. In the United Kingdom, the successful but divisive campaign for the UK to leave the European Union is said to have strongly benefitted from voters hoping to stop Muslim (alongside East European) immigration. In the US, president-elect Donald Trump appealed to supporters during his campaign promising a complete ban on Muslims’ entering the US, if elected president. In Germany, the far right and anti-Islam movement “Patriotic Europeans Against the Islamisation of the West,” abbreviated “PEGIDA,” has won many followers; the AfD, a folkish-populist right wing party has prospered on a divisive anti-immigration, anti-Islam platform and threatens the dominance of mainstream parties. A common claim is that Muslims in the West are building states within states, where parallel legal structures in the form of Shari’a councils are the first step to erode the states’ secular constitutional order. The spread of extremist thought subversive to the state by homegrown Islamists further heightens the fear. Two recent books by Machteld Zee and John R. Bowen promise to take a closer look at Shari’a councils, their constitutional basis, practice and (in)compatibility with the constitutional order of Western states. Reviewing the books side by side, it becomes quickly clear that though they cover the same ground, and in fact, evaluate the very same institutions and their leaders, their assessment starkly diverges; itself a mirror of the prevailing polarization. The concurrent reading of both books also highlights the pitfalls of Zee’s book, while cementing Bowen’s reputation as distinguished expert on Islam and anthropology. Unfortunately, Zee’s book is beset with inaccuracies and errors, which are largely rebutted by Bowen’s book. Zee sets out asserting that “the development of British Sharia councils is the result of the combination of multiculturalism and Islamic fundamentalism.” She passionately stresses the need to talk about Islamic fundamentalism, which “challenges the relationship between religion and the state as we know it in the West” (Zee, at xi). Throughout the book, her main concern is women’s rights, a legitimate concern generally, but particularly so when considering the undeniable inequality in treatment of men and women in many Muslim majority states. In contrast, framing the background and purpose of his book, Bowen highlights “a moral panic . . . over claims that state-aided schools in Birmingham were promoting shari’a and Islamic extremism” and fears that “shari’a councils endanger[] the rule of law and gender equality throughout Britain” (Bowen, at 3). In his words, Shari’a councils “have become a flashpoint in British public debates, drawing the ire and fire of many commentators even as they adapt to the English legal environment” (at 4). In response, thereto, his book is intended as a “study of British Islam to “highlights issues and practices surrounding shari’a” (at 3). Accordingly, whilst Zee explicitly sets out her opinion on the desirability of Shari’a councils, Bowen frames his book as a descriptive and matter of fact analysis of the history and the current state of British Islam to unmask misconceptions. However, his work is not without bias either, and his underlying aim to calm the prevailing panic is apparent from the very start. Zee’s book is divided into three distinct parts, in which she sets out to cover, first, a theoretical discussion of the multiculturalist ideology, second, a summary of Islamic fundamentalism, and, third, Shari’a councils as the practical consequence of the prevailing multiculturalist ideology in the West and the Islamic fundamentalism practiced in our midst. The three parts are disjointed, as she acknowledges. In Part I, reading akin to a Bachelor or Master thesis, Zee confronts the reader with two tribes in the imaginary country of “Sea landistan,” expressing the hope “that after at least 25 years of multiculturalist sensitivities a fresh case of cultural twists can open the mind for healthy judgment” (at 19). In Sealandistan, two vastly different groups live side by side. One group kill their eldest when they reach 90, but greatly value animal welfare; another group celebrates a monthly feast during which they enjoy kicking animals to death. She then uses this artificial scenario in an attempt to deconstruct six tenets which she alleges underlie the multicultural ideology: (i) who someone authentically is, is determined by his or her cultural identity; (ii) non-recognition of this cultural identity constitutes psychological harm; (iii) culture is good; (iv) cultures are equal; (v) cultural differences are good, but if not, they should at least be tolerated; and (vi) minority cultures must not be criticized by the dominant culture which has the positive obligation to preserve these. To support her claims, she references and quotes well-known authors relevant to the multicultural debate. At the same time, the chapter is interspersed with polemic and often irrelevant statements: “We get told ‘if we were all the same the world would be a dull place’ (imagine those poor monocultural African tribes not mixed with Asian homosexuals and Maori)” (at 34). Perhaps for reasons of brevity, or perhaps for reasons of her polemic style and lack of detachment, the author does not succeed in setting out how the claimed tenets are arrived at or how the theoretical analysis and the example of Sealandistan are relevant to the remaining parts of the book. This is unfortunate as she does mention several pitfalls of multiculturalism. In Part II she addresses Islamic fundamentalism, which is built on the premise that “there is increasing competition between Islamic and secular law on Western soil” (at 52). While Zee succeeds in highlighting some of the main features of Islamic fundamentalism, it becomes apparent that the author’s knowledge of Islam, albeit not completely lacking, is limited. To illustrate, she equates Islamic fundamentalism “for the purpose of clarity . . . with the concepts of Islamism and political Islam,” while incorrectly classifying in the same paragraph Egypt’s al-Azhar University as espousing the same (at 52). Likewise, it is disappointing that she quotes Ahadiths (Arabic, plural of Hadith, the transmitted word of the prophet) by questionable secondary literature. Zee translates the infamous daraba (beating) verse of the Quran twice in her book, but fails to comment on the difference in translation, or perhaps even fails to notice it: On page 63, she translates it as “men have authority over women, for Allah has made the one superior to the other,” while quoting the same passage as “men are the protectors and maintainers of women, because Allah has given the one more (strength) than the other . . .” twelve pages thereafter. Continuing her polemic style used in Part I, she introduces Saudi Arabia as “the most ‘complete’ Sharia state, to see what happens if Islamist principles are the basis of a nation’s blueprint, starting with the judicial foundation” (at 64). This is seemingly to indicate what awaits Europe if the spread of Shari’a councils is not halted. Subsequently she cites Malaysia as a nation that “intrinsically changed for the worst” and “islamised in a short period of time” (at 73). In Part II, Zee entertains and supports the belief that the term “Islamophobia” was invented to “stifle debate and suppress criticism of Islam” and that “the term was created by Islamists to create an atmosphere of victimisation, where Muslims are continuously portrayed as victims suffering from hatred, discrimination and negative stereotyping” (at 86). Sometimes the book has undertones of a conspiracy theory, such as when the author appears to espouse the belief that Yusuf al-Qaradawi, a well-known Islamic scholar, and Tareq Ramadan, Professor of Islamic Studies at Oxford University, together with Muslim and Islamist organizations are actively working towards establishing a global Shari’a state, whereby ghettoization and institutions such as Shari’a councils are only a pre-stage to the establishment of a worldwide Shari’a state. This is allegedly based on a pact between the Muslim Brotherhood and Wahhabi Saudi Islam, which together have succeeded in a short period to build media outlets, educational centers and, importantly Shari’a councils. That Wahhabi Saudi-Arabia has had a multifarious and regularly thorny relationship with the Muslim Brotherhood, particularly in the recent past, is nowhere considered.1 Finally, in Part III and, so to speak, the culmination of her groundwork of Part I on multiculturalism and Part II on fundamentalism, Zee takes a closer look at Shari’a councils in the UK. It is here that the qualitative difference between Zee’s research and that of Bowen becomes most obvious. Both Zee and Bowen focus on the very same Shari’a Councils, namely the Islamic Sharia Council (ISC) in London, the Birmingham Central Mosque Sharia Council and the Muslim Arbitration Tribunal in Nuneaton. We will therefore look at Bowen’s book, with references to Zee’s. Whereas Zee extensively quotes tabloids throughout her book, Bowen derides the same and turns the rectification of tabloid messages into the raison d’être of his book. Bowen’s book is cohesive, and unmasks many of Zee’s assertions as erroneous. In Part I, “Pathways,” Bowen provides the reader with the origins of the establishment of Shari’a councils in the UK by looking at the historical background of British Muslims in East Asia, and the current topography, i.e., their geographical concentration in Britain and internal divisions (at 10–25). In contrast, Zee qualifies British Shari’a councils as the fruits of Saudi and Muslim Brotherhood efforts to Islamize the United Kingdom (at 116 et seq.) In Part II, “Practices,” Bowen presents his findings collected through interviews, attend ance at client sessions and Shari’a councils deliberations over a period from 2007 to 2013, as well as reviews of case files, wherever available. He deals with the same institutions as Zee does, who, however, only spent two afternoons at the ISC and half a day at the Birmingham Central Mosque Sharia Council (Zee, at 131). Bowen focuses on the legal issues and procedures in divorce cases mentioning only tangentially the general reputation of the councils’ members, with judgment reserved to the readers. This is particularly interesting in relation to the ISC, where some of the council members are known in the press as extremists or Salafists. Zee, in contrast, draws on such characterizations to further her general message of the book, i.e., that Shari’a councils are bad for our constitutional order and must be feared. Bowen’s descriptive style stands in stark contrast to Zee’s, who considers her three afternoons at Shari’a councils as sufficient evidence to draw sweeping conclusions such as that “all Sharia councils condone violence against women” (at 139). Perhaps owing to his descriptive style, Bowen consist ently remains neutral and detached, even when considering controversies surrounding Shari’a councils, for example that Islamic law, as commonly interpreted by Shari’a councils, continues to disadvantage women. The core of Bowen’s work is his detailed analysis of the constitutional challenges at stake in Shari’a councils, which he labels “unstable performativity” (Bowen, at 88–102). Given that Shari’a councils do not have legal legitimacy in the United Kingdom, with no claims to valid legal authority and only a self-proclaimed religious authority (at 89), Bowen analyses what the act of marriage dissolution performed by the Shari’a council actually amounts to in legal and constitutional terms. He explains that institutions depend on the capacity to change the world by performative acts such as decreeing, stating, affirming, announcing, pronouncing. In the works of the Shari’a councils, Bowen identifies, first, judicial performativity, whereby a marriage is dissolved by the council itself, second, the husband’s performativity, when he agrees to a divorce, even if reluctant and, third couple’s performativity, when the council certifies the breakdown of the marriage that has already occurred, i.e., when the marriage is dissolved due to nonperformance by one of the parties. Bowen shows that the Shari’a councils rely on all three performativity theories, despite them being mutually exclusive. Accordingly, their performativity is “intrinsically unstable” (at 90). In Part III, Bowen provides a detailed description of the work of the Birmingham Central Mosque Sharia Council as well as the Sufi Muslim Arbitration Tribunal in Nuneaton, both of which are also covered by Zee. Bowen focuses on the heart of the Shari’a council debate in the media, in particular the popular critique that such councils hollow out women’s constitutional protection. He highlights that within their communities Shari’a councils provide a way for women to break free from an abusive relationship, in a manner acceptable to their community. They are seen as institutions that divorce women against their husbands’ will. Thus, he suggests that they actually support women’s rights. In contrast, Zee argues that the existence of Shari’a councils forces women to seek religious divorces keeping them trapped in failed marriages longer than they should and forcing them to negotiate away rights (such as custody), they might not even know they have. Bowen highlights however that religious divorce proceedings may often last no longer than civil divorces in the UK. In Part IV, “Boundaries,” Bowen acknowledges, albeit indirectly, that Shari’a councils are lacking in terms of equality. At the same time, however, he points out that their services are increasingly adapting to the British constitutional and other legal expectations (Bowem, at 210–28). Perhaps his overall assessment is too positive and apologetic. But only Bowen’s book provides the necessary insights that enable readers to get a better understanding of the complex issues at play. Zee’s book merely polarizes. Reading their texts side by side offers several examples of the complexities involved, one of which shall suffice here for illustration purposes: Comparing Shari’a councils with their Jewish equivalent, the Batei Din, Zee mentions the fact that not many Shari’a councils have thus far applied for registration under the Divorces (Religious Marriages) Act 2002, as proof of their miso gynist leanings. Yet, Bowen’s more detailed discussion shows that the issue is a lot more complicated than that. The Divorces Act was passed with the aim of preventing limping marriages in the Jewish community, whereby a couple may have a civil divorce but the husband then subsequently declines to agree to a religious divorce. Under Jewish law, as commonly interpreted, a woman cannot divorce her husband against his will, nor can a court or Bet Din for that matter. Thus, to incentivize husbands to consent to a Jewish divorce, the Act allows the courts to halt a civil divorce, until a religious divorce is finalized. Hence, as Bowen highlights, registering under the Act might not actually benefit Muslim women. Were Shari’a councils to register under the Act, a husband would be able prolong the civil proceedings by using dilatory tactics in the religious proceedings. Since he may remarry under Shari’a, as commonly interpreted, while still being married, he would not have an interest in finalizing the divorce. Moreover, a Muslim woman may under Shari’a get divorced against the husband’s will, in stark contrast to her Jewish counterpart. There is thus no upside for Shari’a Councils to register, other than making the divorce more difficult for the wife. Bowen’s book is not without fault. While his analysis is based on extensive empirical research on Shari’a councils, he does not sufficiently address the possibility that the sessions of the Shari’a councils he attends are affected by his presence. This is true even where, as in one reported session, one of the ISC members, Haitham al-Haddad, refuses to continue the discussion since it is being recorded by Bowen (at 105). (Haitham al-Haddad is one of the members profiled by the media and Zee as misogynist and extremist.) In line with his descriptive style, Bowen’s book ends without firm conclusions or strong answers, leaving many questions open. This is due to the complex nature of the issue at stake, but can also be a little dissatisfying to the reader. In stark contrast, Zee’s book concludes with a brief plea for states to adopt “political agnosticism” as opposed to “multiculturalism” to stop the advance of Shari’a councils undermining Western democracies. (At no stage does she provide any meaningful analysis of political agnosticism.) Bowen’s book ultimately provides a very valuable resource for readers interested in the workings of Shari’a councils. The same cannot be said for Zee’s book, whose academic quality is questionable, and a good read only for those interested in affirming opinions already swayed by the anti-Muslim zeitgeist.
Purpose: Administrative decentralization seeks to redistribute authority, responsibility and financial resources to provide public services among different levels of the government. It is the transfer of responsibility for the planning, financing and management of certain public functions from the central government and its agencies to field units of government agencies, subordinate units or levels of government, semi-autonomous public authorities or corporations, or area-wide, regional or functional authorities. When governments devolve functions, they transfer authority for decision-making, finances, and management to quasi-autonomous units of local government with corporate status. According to Article 3 of the Constitution of Malaysia, Islam is the country's official religion; therefore, studying the legal system of this country, which has a Muslim background, is essentially important to our country. In addition, given the importance of decentralization in Iran, it is of considerable importance to study the challenges of the decentralization system, even when they are formed in a federal system. The Malaysian legal system, modeled based on the English law, has, after independence of the former country, chosen federalism, and, consequently, the political decentralization system for their government. However, the important issue refers to whether the system of political decentralization has been achieved completely and properly in this country and what are its damages? Decentralization can be a way of improving access to services, tailoring government actions to private needs, and increasing the opportunities for state-society interactions. Design/Methodology/Approach: This paper is formed and based on the critical paradigm with the descriptive method, and has been conducted in two sections. The first section of the study investigated the levels of government, and, in the second part, the relationship between federal, state and local governments will be discussed. Findings: Malaysia is one of the three Asian countries and the only southeastern Asian country which has chosen a federal government. The important matter is whether the mentioned federal system results in decentralization? The Malaysian government includes three layers: the federal government, the government of provinces and local government. The provincial and local governments, as the symbol of decentralization in such countries, are determined in Malaysia’s Constitution with their duties, discretions and limitations. Actually, however, the federal government interferes in provincial activities. 91 percent of financial resources are controlled by the federal government. The independent activities of local governments are hindered by factors such as limited responsibilities, federal and provincial governments’ interference in local government affairs, the role of the national association and housing ministry parallel to the local government regarding law and policy-making, existence of unique obligatory policies for all local governments, limited financial resources, and the appointment of local authorities by the federal government. Consequently, the above explanations imply that federalism, as a governmental system, will not necessarily result in decentralization. Originality/Value: Given the large number of studies on the issue of decentralization in the Iranian legal system, this paper, with the aim of observing the originality principle, intends to conduct a comparative study on the legal systems of Malaysia and the United Kingdom.
Abstract. The Contribution of Islamic Banking on the Banten Economy. The development of Islamic banking in Banten can be seen from the four aspects, such as amount of assets, DPK, financing and credit risks. Even indicates the good growth, but the performance of Islamic banking from the total banking in Banten region is still relatively small. Until the fourth quarter of 2013, the share of Islamic banking assets in Banten only reached 6.78 percent of total banking assets in the province of Banten. Likewise, the share of Islamic banking on third party funds amounted only 5.20 percent. While the financing extended by the Islamic banking in Banten province amounted only 7.61 percent of total bank credit in Banten Province. This research was conducted with a view to determine the contribution of Islamic banking to increase PDRB Banten Province. This research uses 60 samples, including monthly data from January 2009 until December 2013 consisted of PDRB Banten, DPK and financing Islamic banking in Banten. The data were analyzed using multiple linear regression with the help of software eviews. The results showed that the DPK data processing and financing not partial effect on PDRB increase in Banten. However DPK and financing jointly/ simultaneous effect on PDRB Banten. Figures determination coefficient of 53% shows the value of the contribution of Islamic banking and finance sector generally, to the economic progress of Banten. The remaining 47% was contributed by other sectors that are not included in this study. The high contribution of Islamic banking to Banten’s economy must be supported by the preparation of adequate infrastructure, especially concerned to improve the quality and quantity of human resources in the Islamic economics and finance area. Beside that, we must give the encouragement to the government of Banten in order to increase the proportion of decentralized funds placement in Islamic financial institutions.Abstrak. Kontribusi Perbankan Syariah Terhadap Perekonomian Banten. Perkembangan perbankan syariah di Banten dapat dilihat dari empat aspek, yaitu jumlah aset, DPK, pembiayaan dan resiko kredit. Meski terus menunjukkan perkembangan yang baik, namun kinerja perbankan syariah terhadap total perbankan di wilayah Banten masih relatif kecil. Sampai triwulan IV 2013, pangsa aset perbankan syariah di Banten baru mencapai 6,78 persen dari total aset perbankan di wilayah Provinsi Banten. Demikian juga dengan pangsa penghimpunan DPK perbankan syariah hanya sebesar 5,20 persen. Sementara itu pembiayaan yang disalurkan oleh perbankan syariah di Provinsi Banten hanya sebesar 7,61 persen dari total kredit perbankan di Provinsi Banten. Penelitian ini dilakukan dengan maksud untuk mengetahui kontribusi perbankan syariah terhadap peningkatan PDRB Provinsi Banten. Riset ini menggunakan 60 sampel, meliputi data bulanan sejak Januari 2009 sampai Desember 2013 terdiri dari PDRB Banten, DPK dan pembiayaan perbankan syariah di Banten. Teknik analisis data menggunakan regresi linier berganda dengan bantuan software eviews. Hasil pengolahan data menunjukkan bahwa DPK dan pembiayaan tidak berpengaruh secara parsial terhadap peningkatan PDRB Banten. Namun DPK dan pembiayaan secara bersama-sama/ simultan berpengaruh terhadap PDRB Banten. Angka koefisien determinasi sebesar 53% menunjukkan nilai kontribusi perbankan syariah, dan umumnya sektor keuangan, terhadap kemajuan perekonomian Banten. Sisanya 47% disumbangkan oleh sektor lain yang tidak dimasukkan dalam penelitian ini. Tingginya kontribusi perbankan syariah terhadap perekonomian Banten harus direspon dengan penyiapan infrastruktur yang memadai, terutama berkaitan dengan peningkatan kualitas dan kuantitas sumber daya manusia yang menguasai bidang ekonomi dan keuangan Islam. Diperlukan juga dorongan untuk Pemprov Banten agar meningkatkan proporsi penempatan dana desentralisasi di lembaga keuangan syariah.
It is argued that a Bitcoin-style money-like informational commodity may constitute an effective instrument for the further development of Islamic Finance. The argument involves the following elements: (i) an application of circulation theory to Bitcoin with the objective to establish the implausibility of interest payment in connection with Bitcoin, (ii) viewing a Bitcoin-like system as a money-like exclusively informational commodity with the implication that such a system need not support debt, (iii) the idea that Islamic Finance imposes different requirements compared to conventional financial policies on a money concerning its use as a tool for achieving social and economic objectives, and (iv) identification of two aspects of mining, gambling and lack of trust, that may both be considered problematic from the perspective of compliance with the rules of Islamic Finance and a corresponding proposal to modify the architecture of mining in order to improve compliance with these rules.
Journal of Anthropology and Archaeology is a peer-reviewed international journal, which publishes original papers promoting theoretical, methodological and empirical developments in the discipline of socio-cultural anthropology.
Objective - This paper was aimed to explain the development of Islamic banks and their contributions in Indonesia local development. Methodology/Technique - The paper described data on essential financial data of Islamic bank in 8 provinces in Indonesia mainly in their economic growth, percentage of population living under the poverty line, along with Islamic financial indicators, i.e. asset, third parties fund, and financing. Findings - The results indicate that Islamic banks accomplish impressive financial performance reflected in fast growing in asset, third parties fund, and financing. In terms of financial intermediaries, Islamic bank also performs well as presented in a larger share of financing compared to third parties fund. Islamic banks are also resilient to local short-run shocks in the economy. However, the relation between these financial indicators with economic indicators is not likely very supportive mainly because Islamic bank's limited market share and issue in financial inclusion in Indonesia. Novelty - As a preliminary research in the relation between Islamic finance and local development particularly in a new emerging decentralized economy, this paper bear a worthy endeavour in expanding this field of study in the future. Type of Paper: Review Keywords : Local Development, Islamic Bank, Financial Intermediaries, Economic Growth, Poverty.
Funds of district development sourced from district of earning and budgeting (APBD) constrained when source of revenue rely on district revenue (PAD) as like as taxes. An act penetration innovatory solution is needed to solve the budget deficit problem such as the potency of Sharia bonds (Sukuk). This article discusses what kinds of potency that become strengths and weaknesses then how opportunities and challenges are faced by Banten Province in an effort to take advantage of sukuk as the source of development budgeting in Banten. Furthermore, what strategis are effective to apply in an attempt to make sukuk as the source of development budgeting in Banten. An analysis of classical SWOT (SWOT Analysis-K) used to solve the problem above. First step of SWOT-K analysis is identifying the internal and external factors faced by the Banten province to take advantage of sukuk as a source of development budgeting in Banten. Second is making combination of internal and external factors. Final step is formulating appropriate strategies to be sukuk as an alternative of development funding in Banten.
 Result of SWOT-K anafysis in Banten Province has the power of aspects of economic resources as basic capital to make use of sukuk for regional development budgeting. Whereas there are two weakness become obstacles, there are human resources and government management. Besides, the market opportunity to make use of sukuk is widely open because Banten Province is one of the provinces that have a positive economic growth. Opportunities become greater with decentralization right in district financial management, but faced challenges are none of juridis basis for the implementation of district sukuk. The existence of UU SBSN does not yet give potency for district to take advantage of sukuk as APBD because the utilization of new sukuk is allowed for APBN. Priority strategic is improving the quality of human resources in field of Sharia finance by increasing professionalism and accountability in management. Improvement of the
 quality of human resources is accompanied by efforts to encourage the central government and the legislature to revise the constitution of governing district finances in order that accommpodate the source of society loans as instrument of district Sharia bonds (sukuk).
 Keywords: Budgeting, Bonds, Sukuk, Banten, APBD.
This study attempted to investigate the An assessment on Decentralized Service Delivery in the \nHealth Sector in Ahferom Wereda which is one of the administrative divisions of Tigray National \nRegional State. The main objectives of this study was to examine adequate human resources and \nhealth service availabilities including pharmaceutical commodities, the local level health \nservice delivery arrangements in terms of accountability, the institutional capacity of local \ngovernment in implementing and coordinating decentralized health service programs and \npolicies and identify the challenges of decentralized governance in the process of health service \nprovision. The study used a descriptive survey research design and employed both qualitative \nand quantitative data types, specifically semi -questionnaires, semi-structured interviews and \nfocus group discussion. In addition to this, study was employed both primarily and secondary \nsources of data. The sampling designs used in this study are both probability and non probability \nsampling designs. These are, purposive, clustered, lottery method, proportionate sampling and \nfinally convenience sampling was employed. For the purpose of this, the study used a sample of \n190 house hold heads. In addition to this, the study used 20 key respondents purposely. The key \nrespondents with regard to this objective were officials in health related management and health \nservice providers of the wereda .The major findings of this study reveals that though \ndecentralization is contributing better health services availability, it constrains ensuring of \nadequate human recourse, geographical accessibility and adequate pharmaceutical commodities \nfor better health service delivery to the public. Besides, there is failure of accountability in \nrelation to financial planning, reporting and implementation of activities, the availability of \nchanneling procedures for complaints, strong institutional capacity in terms of leadership, \nhuman resources management and financial management capacity. In relation to the challenges \nin health service delivery; shortage of sufficient and competence human racecourses, inadequate \npharmaceutical commodities, insufficient financial resources and weak leadership are identified \nas the major challenges. The study recommended organizing public to participate in financing \nand health service delivery, enhancing leadership and improvement, filling vacancies and \nenhancing competency of the staff, strengthening standardized auditing instrument and \nimproving and strengthening inter-organizational relations with different NGOs are more \nrelevant.
Micro Financing Institutions (MFIs) loan provision to poor is proving as a key strategy for poverty alleviation and inadequate access to credit by the poor has been identified as one of the contributing factors to poverty. To this end, this studies aims at assessing linkages between MF loans Provision in line with local economic development and provide basis for policy formulation at regional and national level in regard to MFIs and LED. To attain this objective, studies from Ethiopia and other countries have been reviewed. Empirical reviews showed that these institutions provided opportunities for self-employment; improved women's security; autonomy, self confidence and status within the society and household; helped in improving children’s Education. Above all, as pro-poor program; they targeted the most vulnerable groups in society, particularly women, who remain confined to households with little or almost no assets. In Ethiopia, great efforts are being made since last two decades by expanding MFIs loan provision services to the various groups of the people specifically the poor to facilitate poverty reduction effort. Despite the increasing reliance on MFIs as one of the instrument to reduce poverty in Ethiopia; very little work has been undertaken to examine the linkage of the microfinance expansion with local economic development (LED) strategy of the particular region. The studies reviewed revealed that there has been duplication of business undertaken in various parts of the region. This is due to lack of linkage and synergy of the loan provision by MFIs to the LED strategy of a given local area in particular and regions in general. The reviewed literature indicated that on account of decentralization of the development plan to optimize the potential of each region and mobilize resources; the local governments have been empowered to undertake social and economic development endeavor. It has also been found that, the Growth and Transformation Plan (GTP) (2010/11-2014/15) and LED were closely aligned. The interconnection between GTP and LED existed directly through the micro-small scale enterprises (MSE), cooperatives and other associations. Since LED aims to create efficient and functioning local economies as a consequence it has a direct alignment with growth and transformation efforts. Therefore, linking the microfinance loan provision to the local development priority appeared is very critical for the sustainability of the MSE businesses to benefit from local available potential resources for poverty alleviation program. Empirical evidences reflected that the current urban policy, the MSE strategy and the regional development framework provided additional opportunities for the implementation of LED and creating synergy between MFIs & MSE in Ethiopia. In light of the above view, the current MFIs loan provisions and local development priority of various regions as very important point of emphasis unseen in Ethiopia. Moreover, the findings of the study revealed that there is clearly identified lack of synergy between MFIs, MSE, Cooperatives Agency, Local administrative apparatus and LED in various regions in Ethiopia. This necessitates the stakeholders have to set policy that fills up the gap and create strong linkage between MFIs loan provisions to LED priority of particular regions to assure the sustainability of MSE businesses; and enhances the contributions of MFIs for poverty alleviation in Ethiopia. All in all, the researcher recommends that both Federal, regional government and other concerned stakeholders to work towards digging deeper to find keys to success. Key words : MFIs Loan Provision, Linkages, LED strategy
<strong>Abstrak: </strong>Fund is like blood flowing to all parts of the human body, if there is human blood deficiency therefore sooner or later death will be the result . Similarly toward education funding, regardless of the cost of all planned programs will likely not be operationalized. Problem of the high cost of higher education is perceived by the public on the one hand, and the desire to provide a better education on the other hand has always been a problem that still can not be resolved satisfactory . When we look at the history of the heyday of Islam, funding institutions apparently has got the most attention from the education providers and other parties that are not directly involved in it. While the pattern of management education in the classics are implemented in two ways: 1. Centralized systems, centralized point here is that education funding is planned and managed by bureaucrats (power authority), not by the institution concerned. All educational needs will be met by the government through the state treasury or the Bayt al-Maal. 2. Decentralized system is more flexible and participatory than centralized systems, which consist of the traditional pattern (the traditional pattern of the proceeds are typically used without a clear plan), and non-traditional pattern, this pattern is the antithesis of the traditional pattern, incoming funds managed by organizers of the institution, through a targeted plan according to the situation and condition of the institution concerned. <strong> </strong> <strong>Keynote</strong>: patterns of financing, Islamic Education, classical era
Thorsten Beck, Asli Demirgüç‐Kunt, María Soledad Martínez Pería
Using data from a survey of 91 banks in \n 45 countries, the authors characterize bank financing to \n small and medium enterprises (SMEs) around the world. They \n find that banks perceive the SME segment to be highly \n profitable, but perceive macroeconomic instability in \n developing countries and competition in developed countries \n as the main obstacles. To serve SMEs banks have set up \n dedicated departments and decentralized the sale of products \n to the branches. However, loan approval, risk management, \n and loan recovery functions remain centralized. Compared \n with large firms, banks are less exposed to small \n enterprises, charge them higher interest rates and fees, and \n experience more non-performing loans from lending to them. \n Although there are some differences in SMEs financing across \n government, private, and foreign-owned banks - with the \n latter being more likely to engage in arms-length lending - \n the most significant differences are found between banks in \n developed and developing countries. Banks in developing \n countries tend to be less exposed to SMEs, provide a lower \n share of investment loans, and charge higher fees and \n interest rates. Overall, the evidence suggests that the \n lending environment is more important than firm size or bank \n ownership type in shaping bank financing to SMEs.