This research is a critical analysis of the practice of certain Islamic banks (IBs) and institutions offering Shari`ah-complaint financial services (ISFS). Under the guise of Islam, these IBs and ISFS in fact are the profit maximising business ventures. Their business practices are not in compliance with relevant rules and practices of Shari`ah. Nevertheless, due to absence of a strong yet dedicated regulatory body, no challenge can be mounted against them. The customer base of these IBs and ISFS is only on a note of well wish and good faith. But in absence of a watch dog, the good-will turns out to be a tool to betraying public trust. One the other hand, it makes mockery with the entire IF industry. Most of these )Bs and )SFS today grant their Shari`ah Advisory Committeesǯ ȋSACsȌ advisory role making their findings voluntary and optional. There may be a true compliance for correcting any breaches found by these bodies, but yet, legality works in a particular way. In absence of an executive power being granted to these bodies as which is also ingrained in the constitution, a bank or institution will fail the legal definition of it being Shari`ah-compliant. Compliance with the Sahri`ah in transactions is either obligatory or optional! There is no second way! At the end, the issue boils down to that of conscience and compliance where one is made victim for lack of it on the part of regulatory establishment. Whereas on the part of the subjected businesses, they are no more than mere ventures that are bent on making profit by any means using appealing slogans! Given the current practice of IBs and ISFS, the study suggests that their SACs must function independently and beyond the control of banks' own executive apparatus. The setting of these SACs and the executive power thereof must be ingrained within the constitution or basic rules. Among others, their power must include disciplinary measures being granted to these SACs by which they may disciple any failing managers or officials for noncompliance. Most of such IBs and ISFS seem to fail on this crucial provision. Therefore, the study finds that such IBs and ISFS are not legally Islamic.

Zakat korporasi merupakan salah satu kewajiban yang harus ditunaikan oleh perusahaan seperti yang telah disebutkan dalam fatwa Majelis Ulama Indonesia ke 3 tahun 2009, dan juga telah disebutkan dalam Undang-Undang zakat No. 23 Tahun 2011 Bab 1 Pasal 4 ayat (2) bagian c dan ayat (3), banyak perusahaan berlabel syariah yang tersebar diseluruh Indonesia dan terhimpun dalam Daftar Efek Syariah, banyaknya perusahaan tersebut tidak berbanding lurus dengan realisasi zakat perusahaan yang diterima oleh lembaga penghimpun zakat seperti BAZNAS. Penelitian ini menggunakan metode kualitatif deskriptif dengan wawancara mendalam sebagai alat penggali informasi, data diolah dan divalidasi dengan metode triangulasi sebagai alat untuk validasi hasil temuan dari hasil wawancara. Penelitian memiliki 3 tujuan, pertama, menganalisis pengaruh fatwa terhadap zakat korporasi, kedua menganalisis peran pemerintah dalam mendorong zakat korporasi, ketiga menganalisis permasalahan yang terjadi dalam zakat korporasi di Indonesia. Hasil penelitian menujukkan bahwa fatwa MUI sifatnya tidak mengikat, sehingga fatwa sangat mudah disepelekan, Pemerintah lebih berpihak pada pajak dan CSR, sehingga mempengaruhi penerapan Fatwa dan UU zakat korporasi, ketika perusahaan-perusahaan di hadapkan dengan regulasi pajak dan CSR yang begitu ketat, maka hal itu menjadikan zakat korporasi ini dipandang sebelah mata, begitupula dengan perumusan Undang-Undang Zakat ini yang tidak memiliki regulasi untuk mewajibkan muzakki dalam menunaikan kewajibannya untuk membayar zakat korporasi.

The study aimed to uncover the determinants of Islamic financial exclusion in Indonesia by gathering responses from financially-excluded respondents. A total of 110 respondents were surveyed, representing five provinces: West Java, South Sulawesi, Aceh, East Kalimantan, and North Maluku. The criteria of the selected participants included those who were financially-excluded, those who did not own any Islamic financial products, those without savings or financing, and those with no capital market products. The study employs Confirmatory Factor Analysis (CFA) to identify indicators explaining Islamic financial exclusion determinants in Indonesia. The paper found that location is the key barrier to obtaining financing from and being able to build savings in Islamic banks/Islamic microfinance, while a lack of financial knowledge is identified as the critical barrier when dealing with Islamic capital market products. Overall, most respondents perceived human capital and products and services to be the two most significant determinants of Islamic financial exclusion in Indonesia, followed by infrastructure, policies and regulation, financial literacy, social influence, and religious commitment. The originality of the paper lies in its detailed insight into the perception of being financially excluded on factors leading to Islamic financial exclusion

Biologically synthesized silver nanoparticles are emerging as attractive alternatives to chemical pesticides due to the ease of their synthesis, safety and antimicrobial activities in lower possible concentrations. In the present study, we have synthesized silver nanoparticles (AgNPs) using the aqueous extract of the medicinal plant Euphorbia wallichii and tested them against the plant pathogenic bacterium Xanthomonas axonopodis, the causative agent of citrus canker, via an in vitro experiment. The synthesized silver nanoparticles were characterized by techniques such as UV-Vis spectroscopy, Fourier transform infrared spectroscopy, energy-dispersive X-ray spectroscopy, X-ray diffraction analysis and transmission electron microscopy. Moreover, the plant species were investigated for phenolics, flavonoids and antioxidant activity. The antioxidant potential of the extract was determined against a DPPH radical. The extract was also evaluated for phenolic compounds using the HPLC technique. The results confirmed the synthesis of centered cubic, spherical-shaped and crystalline nanoparticles by employing standard characterization techniques. A qualitative and quantitative phytochemical analysis revealed the presence of phenolics (41.52 mg GAE/g), flavonoids (14.2 mg QE/g) and other metabolites of medicinal importance. Different concentrations (1000 µg/mL to 15.62 µg/mL—2 fold dilutions) of AgNPs and plant extract (PE) alone, and both in combination (AgNPs-PE), exhibited a differential inhibition of X. axanopodis in a high throughput antibacterial assay. Overall, AgNPs-PE was superior in terms of displaying significant antibacterial activity, followed by AgNPs alone. An appreciable antioxidant potential was recorded as well. The observed antibacterial and antioxidant potential may be attributed to eight phenolic compounds identified in the extract. The Euphorbia wallichii leaf-extract-induced synthesized AgNPs exhibited strong antibacterial activity against X. axanopodis, which could be exploited as effective alternative preparations against citrus canker in planta in a controlled environment. In addition, as a good source of phenolic compounds, the plant could be further exploited for potent antioxidants.

Purpose – The purpose of this study is to present a framework regarding the use of Sharīʿah non-compliant assets as rahn (pledge) and to provide the Sharīʿah analysis on the application of numerous collateral instruments, including financial assets such as shares, unit trusts, current accounts and investment accounts which are Sharīʿah non-compliant. Design/methodology/approach – The study adopts a library-based approach to examine the concept and requirements of rahn, deliberate the classification of Sharīʿah non-compliant assets and delineate the Sharīʿah views on the use of Sharīʿah non-compliant assets as pledges. It also examines the various forms of pledge available and offered in the market using document analysis as well as through discussion with industry practitioners. Findings – In general, the study concludes that Sharīʿah non-compliant assets, either due to their essence or due to the means of acquisition where there is no ownership from Sharīʿah perspective, cannot be used as rahn. This study also provides the Sharīʿah analysis on the use of modern instruments such as shares, unit trusts, current accounts, investment accounts and insurance policy as pledges. Originality/value – The paper provides a reference source for regulators in formulating an appropriate policy and framework on Sharīʿah-compliant collateral; Sharīʿah committees of Islamic financial institutions in arriving at Sharīʿah decisions on collateral; and industry practitioners in establishing internal policies and procedures on collateral.

Fast food refers the food that sold in a restaurant or store with preheated or precooked ingredients and served to the customer in a packaged form for take-out/take-away. India's growing middle class and their changing food habits offer unprecedented growth opportunities to the quick-service restaurant industry. To reap the benefits of Indian market many global brands have entered the market. In a competitive marketplace, customer satisfaction is seen as a key differentiator and important marketing objectives to be achieved. Customer satisfaction is the customers’ evaluation of goods or services in terms of whether that goods or services have met his needs and expectations. Numerous studies show the positive and significant relationship between customer satisfaction and customer loyalty. Besides, there are studies indicating customer satisfaction is only one antecedent of customer loyalty. The present study explores components of customer satisfaction through using exploratory factor analysis at Rolls Mania a fast food service restaurant at Kolhapur City. The empirical evidence of 154 customers reveals that dining experience; accessibility, convenience & affordability and product test are the important components of customer satisfaction. The regression analysis result reveals significant relationship between customer satisfaction and customer loyalty.

Tawarruq is a new phenomenon in the Islamic financial landscape. It has gained wide acceptance from the market due to its inherent characteristics that can offer similar features as the conventional structure. Nevertheless, tawarruq is exposed to a high degree of shari’ah non-compliant risk mainly because it involves a series of sale contracts in succession. The present study investigates the determinants of shari’ah non-compliant events (SNEs) in tawarruq-based financing as practiced by Islamic banks in Malaysia. The study adopts the Analytic Network Process (ANP) gathering different views of experts from practitioners, regulators, sharī’ah scholars/advisors and researchers/academicians. The study found that lack of understanding and knowledge, inadequate control mechanism and reporting, ineffective functional structure, incompatibility of system to the execution of Islamic products, improper document execution and sequence, and inadequate internal policies and governing rules are the key determinants of SNEs in tawarruq-based financing in Islamic banks in Malaysia.

This study measures an Islamic financial inclusion index in Indonesia based on three dimensions, namely the accessibility, availability and usage of Islamic banking services. Additionally, it measures the relationship between the Islamic financial inclusion index and the human development index (HDI). The study found that the level of Islamic financial inclusion in Indonesia is relatively low at the national level. DKI Jakarta is the most financially inclusive province in Indonesia, followed by East Java and Nanggroe Aceh Darussalam. In contrast, East Nusa Tenggara has the lowest average Islamic financial inclusion index. The findings also revealed a positive correlation between the Islamic financial inclusion index and HDI. Those provinces with the highest Islamic financial inclusion index were also likely to have a higher HDI. The findings of the present study suggest that both policymakers and the Islamic financial industry should play a greater role in improving financial access to low-income segments, especially in the eastern part of Indonesia such as East Nusa Tenggara and Papua provinces.

Purpose – Tawarruq (Islamic commodity financing) has evolved as the most ubiquitous concept in Malaysia’s Islamic banking industry. Nevertheless, the extensive use of tawarruq has invoked a number of Sharīʿah (Islamic law) concerns in its practice. This study aims to investigate the Sharīʿah non-compliant (SNC) phenomena in the practice of tawarruq financing in Malaysia. Design/methodology/approach – This study adopts qualitative research methodology, combining both descriptive and content analysis. A self-administered questionnaire was distributed to 16 Malaysian Islamic commercial banks to unveil the Sharīʿah non-compliance issues in the application of tawarruq in Islamic banks (IBs) in Malaysia. Findings – The study found that some practices of tawarruq in Malaysia might not comply with the Sharīʿah, mainly due to the improper sequencing of contracts. The study also discovered that IBs adopt different approaches in dealing with SNC events and the income derived therefrom. Finally, the study noted the influence of board of director/ management on certain Sharīʿah decisions particularly on the treatment of non-
hal
al (impermissible) income. Practical implications – The findings of the study serve as a reference to industry players and regulators in formulating a Sharīʿah non-compliance risk management framework for tawarruq practices. Originality/value – The survey on SNC issues in tawarruq practice constitutes the first of its kind in the existing literature.

The purpose of this study is to compare the cost efficiency of takaful and its conventional insurance counterparts in Malaysia. The study measures the cost efficiency scores of takaful and conventional insurance companies in Malaysia over the period 2009-2011 using non-parametric Data Envelopment Analysis (DEA) based on selected multiple input and output variables. Output variables used are gross premium and investment income while input variables are management expenses, fees and commission expenses. The study finds that conventional insurance companies in Malaysia performed better efficiency than takaful companies in 2011. The finding is consistent with study by Ismail, et al (2011) and Saad (2012). The study suggests that takaful and conventional insurance companies should allocate input more efficiently and improve the quality of services as the average scale efficiency is higher than the average of overall and technical efficiency. Takaful must also be more alert towards external factor costs as the scale of efficiency continuously decreased. In order to be more focused, the study only compares the efficiency of takaful and conventional insurance companies from an input oriented approach. The study is also limited to 7 takaful operators and 19 conventional insurance companies and, as such, the finding is most probably indicative, but does not reflect the overall performance of the takaful industry. As part of a policy recommendation, the study provides data on cost efficiency of conventional insurance and takaful companies in Malaysia, which is valuable for regulators in formulating appropriate policy to enhance the competitiveness of the takaful industry in Malaysia.