Ihtifaz: Journal of Islamic Economics, Finance, and Banking

The Green Banking Operations and Their Role In Achieving Sustainable Banking Performance In Babil Governorate

2025-08-19T08:10:54+00:00

Introduction to The Problem: The concept of green banking has gained significant importance. Green banking operations refer to banking practices focused on environmental sustainability and social responsibility. These practices not only benefit the environment but also have a positive influence on overall sustainable banking performance.

Purpose: This study aims to examine the nature of green banking operations and their impact on banking performance.

Design/Methodology/Approach: A quantitative study was conducted using a structured questionnaire distributed to a sample of customers of three banks in Hilla city (Baghdad, National Bank of Iraq, and International Development Bank) during the period from April 15 to May 15, 2025. 100 questionnaires were distributed, and 10 were excluded for incompleteness, leaving 90 questionnaires valid for statistical analysis.

Design/Methodology/Approach: A quantitative research method was employed, utilizing a structured questionnaire distributed over a 30-days period (15 April 2025 - 15 May 2025). The study targeted commercial banks operating in Babil Governorate, specifically the Hilla branch. A Likert‑scale questionnaire was distributed across these banks, with a total of 100 questionnaires handed out. Of these, 90 valid responses were analyzed, while 10 were excluded due to invalidity.

Findings: Present the article’s results indicate that adopting green banking practices such as energy conservation, paper reduction, digital banking systems, and financing environmentally positive projects directly enhances operational efficiency, lowers costs, boosts customer satisfaction, and, ultimately, improves the overall performance indicators of the banking institution

Legal Analysis of Metaverse Banking from the Perspective of Islamic Economics

2025-08-19T07:54:12+00:00

Abstrak

Introduction to The Problem: The emergence of the metaverse banking concept is a consequence of advances in virtual world technology. However, its implementation raises various legal issues that still lack clarity, particularly in the context of Islamic economics. Therefore, in-depth research is needed to ensure that future digital banking services align with the principles of Sharia. This study includes important issues such as ownership of digital assets, clarity of the legal status of virtual transactions, and the extent to which these activities conform to Islamic teachings.

Purpose/Objective Study: In order to implement metaverse banking in Indonesia, this research aims to develop a legal framework that complies with sharia provisions, identify potential violations of sharia principles in virtual banking operations, and analyze the legal aspects of metaverse banking from the perspective of sharia economics.

Design/Methodology/Approach: State the article’s design/methodology/approach used in the paper. This research uses a qualitative methodology that combines normative analysis and library research techniques. The Quran, Hadith, fatwas from DSN-MUI, regulations, and scientific works related to sharia economics and metaverse banking are studied to gather data. A comparative method between metaverse banking practices and sharia principles is used to conduct the analysis.

Findings: The findings of this study indicate that if metaverse banking meets the requirements of transparency, avoids usury and uncertainty, and guarantees halal underlying assets, then it can comply with the principles of Islamic economics. However, the unique nature of virtual transactions and the need for strict oversight of security features and consumer protection in the metaverse environment require additional regulatory modifications.

Revisiting Waqf Intention Prediction in Sumatera Utara

2025-10-15T06:54:23+00:00

Introduction to The Problem: Despite North Sumatra’s large Muslim population and economic capacity, its Waqf Index ranking remains among the lowest in Indonesia. This paradox raises questions about the underlying behavioral, institutional, and social factors that shape individual intention to participate in cash waqf.

Purpose/Objective Study: This study aims to investigate the determinants of waqf behavioral intention by examining the influence of the Theory of Planned Behavior (TPB), Institutional Theory (IT), and Social Exchange Theory (SET).

Design/Methodology/Approach:Using regression-based path analysis, this research analyzes responses from 100 individuals in North Sumatra collected via Google Form. Each construct (TPB, IT, SET) is operationalized through its subdimensions. Behavioral intention serves as the dependent variable.

Findings: The results reveal that TPB significantly predicts waqf behavioral intention, while IT and SET do not show direct significance. TPB alone accounts for the most substantial influence, suggesting that attitudes, perceived social norms, and perceived behavioral control are key drivers of waqf participation in the region.

Epistemology of Khidmah in Islamic Marketing and the Impact on Consumer Satisfaction

2025-06-13T07:43:48+00:00

Introduction : The Concept of Khidmah in Sharia Marketing emphasizes the values of sincere service, honesty, and fairness while ensuring that products remain halal and beneficial. This approach fosters both material and spiritual consumer satisfaction while building long-term harmonious relationships. This article employs descriptive qualitative research methods with descriptive procedures and techniques, focusing on data sources from literature, particularly relevant references to the object of study. The findings of this study indicate that the concept of Khidmah in Islamic marketing plays a crucial role in establishing harmonious relationships between business practitioners and consumers. Sincere, responsive, and ethical services not only enhance consumer satisfaction and loyalty but also create blessings and long-term benefits, positioning Islamic marketing as a sustainable solution for business success and societal well-being.

Purpose: This article aims to explore the concept of Khidmah in Islamic marketing and its impact on consumer satisfaction, emphasizing the values of sincere service, honesty, and fairness in business practices.

Methodology: This research adopts a descriptive qualitative approach, with data collection sourced from literature and descriptive analysis to understand the relationship between the concept of Khidmah and consumer satisfaction.

Findings: The findings of this study indicate that the application of the concept of Khidmah in Islamic marketing plays a significant role in building harmonious relationships between business practitioners and consumers. This not only enhances consumer satisfaction and loyalty but also creates blessings and long-term benefits for all parties involved.

Digital Islamic Finance In Indonesia: Challenges and Opportunities From A Public Policy Perspective

2025-10-14T15:51:09+00:00

Introduction to The Problem: Digital Islamic finance is increasingly recognized as a strategic tool for promoting inclusive, ethical, and sustainable financial systems worldwide. In Indonesia, as the largest Muslim-majority country, Shariah-compliant digital finance plays a central role in national agendas for financial inclusion and sustainable economic development.

Purpose/Objective Study: This study aims to examine the progress and institutional dynamics shaping digital Islamic finance in Indonesia from a public policy perspective, focusing on regulatory frameworks and the roles of key national institutions.

Design/Methodology/Approach: Employing a qualitative content analysis approach, this research analyzes relevant laws, policy documents, and institutional reports to identify major developments, governance structures, and implementation challenges within the sector.

Findings: The findings reveal significant advancements, including the enactment of Law No. 4/2023, the Digital Sharia Banking Roadmap (RP3SI), and initiatives led by the Financial Services Authority (OJK) and the National Committee for Islamic Economy and Finance (KNEKS). These efforts have strengthened financial literacy, expanded green sukuk instruments, and supported inclusive digital finance pilot programs. However, persistent challenges remain, such as rural infrastructure disparities, limited integration between ESG and Shariah principles, and fragmented regulatory oversight, which collectively hinder broader societal impact.

The Role of Zakat in Poverty Alleviation: A Socio-Economic Analysis

2025-11-26T11:45:32+00:00

Introduction to The Problem: Poverty continues to be a major issue in Muslim-majority countries across Southeast Asia, the Middle East, and Africa. Despite government programs, inequality and wealth distribution gaps are still increasing. Zakat offers a structured mechanism for redistribution, but its implementation is often limited by weak governance, low public awareness, and poor integration into national development frameworks.

Purpose/Objective Study: This study aims to analyze the role of zakat in poverty alleviation from a socio-economic perspective. It seeks to identify zakat’s contribution to reducing poverty, assess the effectiveness of management and distribution, examine institutional challenges, and provide recommendations to strengthen the zakat system for greater social welfare impact.

Design/Methodology/Approach: The study adopts a qualitative approach using a literature review of academic journals, Islamic economics books, institutional zakat reports, and empirical research. Previous findings are compared across local, national, and international contexts to understand patterns, weaknesses, and opportunities in zakat management.

Findings: The findings show that zakat significantly reduces poverty when managed transparently and professionally. Zakat supports mustahik by meeting basic needs and funding empowerment programs such as business capital assistance, skills training, and scholarships. Digital zakat platforms enhance collection and distribution efficiency, but obstacles remain, including regulatory inconsistencies, low muzakki participation, and weak long-term planning.