Falah: Jurnal Ekonomi Syariah

The merger of Islamic banks in Indonesia: Do financial ratios and inflation matter?

Nur Rizqi Febriandika — 2026-02-07

The study aims to investigate the effect of financial ratios and inflation on the stock price of Bank Syariah Indonesia using the Autoregressive Distributed Lag (ARDL) approach. This research was quantitative with variables studied include the Capital Adequacy Ratio (CAR), Return on Assets (ROA), Net Operating Margin (NOM), Operating Costs to Operating Income (BOPO), Financing to Deposit Ratio (FDR), and Inflation. Data were observed from the BSI bank merger in February 2021 to August 2024 by using the Autoregressive Distributed Lag (ARDL) method. The results indicate that in the long term, all variables have no significant effect on stock prices. Meanwhile, in the short term, ROA had a significant positive effect on stock prices, NOM and FDR had a significant negative effect, while CAR, BOPO, and inflation had no significant effect on stock prices, indicating stock price dynamics. Thus, the findings of this study indicate that investors are more responsive to changes in the financial performance of Indonesian Islamic banks in the short term than in the long term. This research contributes theoretically by showing that market responses to firm fundamentals and economic conditions occur through gradual adjustment rather than instant reactions. Practically, the findings assist investors and policymakers in understanding key fundamental and macroeconomic determinants of stock prices for the stability of Islamic banking.

The Influence of Macroeconomic Shocks, Operational Efficiency, and Financing Risk: An Empirical Study of NPF in Indonesian Islamic Banks

Faizul Mubarok — 2026-02-08

This study examines the influence of key macroeconomic variables on the level of Non-Performing Financing (NPF) in Indonesia’s Islamic banking sector using a Vector Error Correction Model (VECM) framework. Research on the stability of Islamic banking was growing, even limited studies linked macroeconomic indicators with NPF with long-term data and dynamic frameworks. This study was quantitative by using macroeconomics indicators such as inflation, the exchange rate, economic growth, the stock price index, financing levels, and global oil prices, complemented by the bank-specific variable BOPO. The secondary time-series data covering the period 2007–2025 were employed in this study. Johansen’s cointegration test indicates the presence of three cointegrating vectors, confirming the existence of long-run relationships among the variables. The result found that the VECM estimation reveals that the exchange rate and inflation exert significant short-run effects on NPF, whereas operational efficiency (BOPO) and economic growth are significant determinants in the long run. These findings underscore the critical role of macroeconomic stability and bank-level operational efficiency in sustaining financing quality in Islamic banking. The implication of this study recommends strengthening risk-management practices, enhancing monitoring effectiveness, and adopting more responsive strategies to mitigate macroeconomic volatility. In addition, policymakers are encouraged to review and adapt macroprudential policies to respond to changing economic conditions. These actions collectively can enhance stakeholder resilience and support effective leadership during periods of economic uncertainty.

The Concept of Benefidonors in Sustaining Community Development through Individual Member Waqf Beneficiaries

Ahmad Fahme Mohd Ali — 2026-02-15

This study investigates the role of waqf in sustaining community development through a novel hybrid concept termed “benefidonors” individuals who simultaneously function as both beneficiaries and donors within the waqf ecosystem. Drawing on prosumerism, ConsuMerchant behavior and the Islamic principle of mutual cooperation (ta’awun), it is posits that active participation through sharing, using and re-donating waqf, significantly enhance multiple dimensions of community well-being. Using a quantitative approach, data were collected via a structured survey instrument administered to 304 verified waqf beneficiaries from the Yayasan Waqf Malaysia database, representing diverse socio-demographic backgrounds across Peninsular Malaysia. The instrument, validated through pilot testing (n = 50) and expert review, employed multi-item Likert scales adapted from established literature to measure seven outcome variables: human capital, physical health, religious capital, family development, social capital, quality of life, and economic capital. Structural Equation Modeling (PLS-SEM) was used for data analysis. Results indicate that the benefidonor concept exerts a significant influence across all seven domains, with particularly strong effects on economic and human capital. While the study offers actionable insights for waqf institutions such as developing digital platforms to facilitate sharing, usage, and re-donation it is limited by its cross-sectional design and focus on existing beneficiaries, which may constrain generalizability. Nonetheless, the findings underscore the potential of transforming passive recipients into active co-creators of sustainable community development through the benefidonor model.

Institutional Drivers of Customer Loyalty in Islamic Banks: A Structural Model of Customer Loyalty from Educational Organizations in Indonesia

Muh. Abdi Imam — 2026-02-23

This study aims to analyze and identify factors influencing customer loyalty in Islamic banks, focusing on educational organizations in Indonesia. Customer loyalty is a crucial aspect for the sustainability of Islamic banks, especially amidst increasingly fierce competition in the banking industry. This study employed a quantitative research design, utilizing primary data collected via structured questionnaires. Quantitative approaches are well-suited for testing hypotheses and analyzing relationships between variables statistically. The questionnaires were distributed both in-person and online to Islamic bank customers from educational organizations in Indonesia over a four-week period with a final sample of 101 respondents. The data were analyzed using SEM-PLS to test the measurement and structural models. The results indicate that service quality significantly influences customer satisfaction, brand image, and loyalty. While customer satisfaction affects brand image, it does not directly influence loyalty, whereas brand image plays a key role in driving customer loyalty. Theoretically, this study contributes to the Islamic banking literature by confirming the mediating roles of brand image and customer satisfaction and offering a foundation for future research on loyalty in institutional and sharia-based financial contexts. This study provides practical insights for Islamic bank management to enhance customer loyalty through improved service quality, trust building, and consistent implementation of sharia principles.

Integrating Economics and Spiritual Perspectives: Insights from the Writings of Imam Al-Ghazali

Muhammad Abdul Ghoni — 2026-02-28

This paper employs qualitative content analysis as its methodological framework, focusing on the seminal works of Imam Al-Ghazali. The study examines central themes in Imam Al-Ghazali’s writings to clarify the influence of spirituality on economic thought. The findings indicate that Imam Al-Ghazali advocates for an economic system grounded in spiritual responsibility and the pursuit of both material and spiritual fulfillment. This study adopts a qualitative design to examine al-Ghazali’s primary writings on economic thought and spirituality, and the library research enabling scholars to explore the evolution of economic ideas within their intellectual and historical contexts. The results underscore the ongoing relevance of Imam Al-Ghazali’s insights in current economic discourse and highlight the importance of balancing material success with spiritual development as a solution to the problems of modern economies, which often emphasize materialism. The analysis demonstrates that integrating spiritual values into economic practices can address contemporary challenges and promote social responsibility, exemplified by mechanisms such as zakah and shadaqah, which serve as means to balance economic activity with spirituality. The results implied that dialogue between spirituality and economics, as articulated by Imam Al-Ghazali, provides a critical foundation for establishing a just and balanced society amid modern challenges.