Islamic Economics Studies Bi-quarterly Journal

Analysis of Islamic-social Banking System with a Case Study of Sepah Bank and Ansar Bank

Document Type : Research Paper

Authors

1 PhD student of Political Sociology, Department of Sociology, Jahrom branch, Islamic Azad University, Jahrom, Iran

2 Associate Professor, Department of Sociology, Jahrom branch, Islamic Azad University, Jahrom, Iran

3 Assistant Professor of Department of Sociology, Jahrom branch, Islamic Azad University, Jahrom, Iran

Abstract

Banks as money market institutions can play an undeniable role in economic and social categories such as urban development, participation in environmental protection, establishment of medical centers, etc. The present study sought to show to what extent the banking system in Iran is in line with the principles of Islamic-Social Banking (QBLP) and also to what extent the existing system in reducing poverty, ethnic discrimination, gender and concerns. Environment and the implementation of Islamic law has played a role. In this research, a qualitative method has been used and its strategy has been content analysis. The research data has been collected and summarized based on the texts, documents and articles of association of Sepah Bank and the former Ansar Bank.The results showed that the frequency percentage of the four factors of QBLP model based on the coding of the activities of the former Ansar Bank is prophet factor 51%, environment 44%, people 88% and profit 81%. Also, the percentage of frequency of QBLP model factors according to the type of activity in Sepah Bank's articles of association, prophet is 45%, environment is 22%, people are 81% and profit is 81%. The overall results of the study showed that the existing banking system adheres to the four principles of Islamic-social banking, so the gaps in the Iranian banking system are eliminated and the development needs of Muslim communities are met, but environmental concerns are not taken into account as they should be.

Keywords

Abbasi, S. M., Hollman, K. W., & Murrey, J. H. J. (1989). Islamic economics: Foundations and Practices. International  Journal of Social Economics, 16(5), 5-17.
Abdul Rahman, A. R. (2007). Islamic microfinance: A missing component in Islamic Banking. Kyoto Bulletin of Area Studies, 1-2, 38-53.
Ahmad, Z. (1994). Islamic Banking: State of the Art. Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), 2, 1-33.
Ahmed, A. (2010). Global financial crisis: An Islamic finance perspective. International Journal of Islamic and Middle Eastern Finance and Management, 3(4), 306-320.
Al-Jarhi, M. A. (2007). Islamic banking and finance: Philosophical underpinnings. In Islamic Banking and Finance: Fundamentals and Contemporary Issues, edited by S. Syed Ali and A. Ahmad. Jeddah: Islamic Development Bank.
Ariff, M. (1998). Islamic banking. Asian-Pacific Economic Literature, 2(2), 48-64.
Asutay, M. (2007). Conceptualisation of the Second Best Solution in Overcoming the Social Failure of Islamic Finance: Examining the Overpowering of Homoislamicus by Homoeconomicus. IIUM Journal in Economics and Management, 15(2), 167-195.
Asutay, M. (2008). Islamic banking and finance - Social failure. New Horizon.
Asutay, M. (2012). Conceptualising and Locating the Social Failure of Islamic Finance: Aspirations of Islamic Moral Economy Vs. the Realities of Islamic Finance. Asian and African Area Studies, 11(2), 93-113.
Ayman, S., & Rowan, G. (2014). Sacred commerce: A blueprint for a new humanity (2nd edition). EQEnterprises, pp 24-28.
Bahari, Z., & Yusuf, M. Y. (2014). Corporate Social Responsibility In Islamic Banking Institutions In Aceh: Analysis Of Criteria And Perception. Journal of Educational and Social Research, 4(2), 390.
Benedikter, R. (2011). Social Banking and Social Finance: Answers to the Economic Crisis (pp. 1-128). New York, NY: Springer New York.
Beck, T., Demirgüç-Kunt, A., & Merrouche, Q. (2013). Islamic vs. conventional banking: Business model, efficiency and stability. Journal of Banking and Finance, 37, 433-447.
Buckley, S.L. (2000). Teachings on Usury in Judaism, Christianity and Islam. United Kingdom: The Edwin Mellen Press, Ltd.
Chapra, M.U. (1992). Islam and the Economic Challenge. Leicester, United Kingdom: The Islamic Foundation and the International Institute of Islamic Thought.
Chong, B. S., & Liu, M. H. (2009). Islamic Banking: Interest-free or Interest-based? Pacific-Basin Finance Journal, 17(1), 125-144.
Dusuki, A.W. (2005). Corporate Social Responsibility of Islamic Banks in Malaysia: A Synthesis of Islamic and Stakeholders' Perspectives. Loughborough: Loughborough University.
Dusuki, A.W., & Dar, H. (2005). Does corporate social responsibility pay off? An empirical examination of stakeholder perspectives. Paper presented at the International Conference on Business Performance and CSR - Measuring CSR Effectiveness/ Sustainable Community Development. Dusuki, A. (2007). The ideal of Islamic banking: A survey of stakeholder's perceptions. Review of Islamic Economics, II (Special Issue), 29-52.
Dusuki, A., & Abozaid, A. (2007). A critical appraisal on the challenges of realizing Maqasid Al-Shariah in Islamic banking and finance. IIUM Journal of Economics and Management, 15(2), 143-165.
Dusuki, A. W., & Abdullah, N. I. (2007). Maqasid al-Shari`ah, maslahah, and corporate social responsibility. The American Journal of Islamic Social Sciences, 24(1), 25-45.
Grossmann, G. M., & Krueger, A. B. (1991). Environmental Impact of a North American Free Trade Agreement. NBER Working, 3914.
Grossman, G., & Krueger, A. (2008). The inverted-U: what does it mean?, Enviroment And Development Economic, 1(01), DOI:10.1017/S1355770X00000450.
Hamidi, M. L., & Worthington, A. C. (2018).  Islamic Social Banking: The Way Forward. Jurnal Ekonomi Malaysia, 52(1), 195-207.
Haniffa, R. M., & Hudaib, M. (2007). Exploring the ethical identity of Islamic Banks via communication in annual reports. Journal of Business Ethics, 76, 97-116.
Hassan, A., & Latiff, S. A. (2009). Corporate social responsibility of Islamic financial institutionsand businesses: Optimizing charity value. Humanomics, 25(3), 177-188.
Henry, C. M., & Wilson,R. (2004). The Politics of Islamic Finance (eds.). Edinburgh: Edinburgh University Press.
Ibn Ashur, M., & al-Tahir. (1945). Maqasid al-Shari’ah al-Islamiyyah, (Eds.), al-Misawi, Muhammad al-Tahir (1998). Kuala Lumpur: al-Basa’ir.
Iqbal, Z., & Mirakhor, A. (2007). An Introduction to Islamic Finance: Theory and Practice. Singapore: John Wiley & Sons (Asia).
Kamlaa, R., & Alsoufi, R. (2015). Critical Muslim Intellectuals’ discourse and the issue of‘Interest’ (rib¯a): Implications for Islamic accounting and banking, Accounting Forum, 39, 140-154.
Laidler, D. E. W. (1993). The Demand for money: Theories, evidence, and problems. New York: Harper Collins College Publishers.
Mills, P. S., & Presley, J. R. (1999). Islamic Finance: Theory and Practice. Basingstoke: Macmillan.
Mohd Nor, S., & Rahim, R. A; Senik, Z. C. (2015). The potentials of internalising social banking among the Malaysian Islamic banks. Environment, Development and Sustainability, 18(2), 347-372.
Naqvi, S. N. H. (1994). Islam, Economics and Society. London: Kegan Paul International Ltd.
Naqvi, S. N. H. (2003). Perspectives on Morality and Human Well-Being: A Contribution to Islamic Economics. Leicester: Islamic Foundation.
Needles, et al. (2010). Financial Accounting. South-Western: Cengage Learning.
Nomani, F., & Rahnema, A. (1994). Islamic Economic Systems. London, UK: London Zed Books.
Pollard, J., & Samers, M. (2007). Islamic banking and finance: Postcolonial political economy and the decentring of economic geography. Transactions of the Institute of British Geographers, 32(3), 313-320.
Qorchi, M.E. (2005). Islamic finance gear up. Finance and Development, 42(4).
Reifner, U. (1992). Social Banking Aand New Poverty-Towards a New Approach in Law and Economics. In U. Reifner & J. Ford (Eds.), Banking for People: Social Banking and New Poverty Consumer Debts and Unemployment in Europe-National Reports. 23-42. Berlin: Walter de Gruyter.
Rosly, S. A., & Abu Bakar, M. A. (2003). Performance of Islamic and mainstream banks in Malaysia. International Journal of Social Economics, 30(12), 1249-1265.
Rosenzweig, W. (2004). Double bottom line project report:Assessing social impact in double bottom line ventures. Center for Responsible Business. Working Paper Series, 3.
Samad, A., Gardner, N. D., & Cook, B. J. (2005). Islamic banking and finance in theory and practice: The experience of Malaysia and Bahrain. The American Journal of Islamic Social Sciences, 22(2), 69-86.
Scheire, C., Maertelaere, S. D. 2009. Banking to Make a Difference. Flanders: Artevelde University College.
Slapper, T. F., & Hall, T. J. (2011). The triple bottom line: What is it and how does it work? Indiana Business Review, 86, 4-8.
Yip, A.W., & Bocken, N.M. (2018). Sustainable business model archetypes for the banking industry. Journal of cleaner production, 174, 150-169.
Wahyuni, S. (2012). Moslem Community Behavior in The Conduct of Islamic Bank: The Moderation Role of Knowledge and Pricing, International Conference on Asia Pacific Business Innovation and Technology Management. Procedia - Social and Behavioral Sciences, 57, 290- 298.
Warde, I. 2010. Islamic Finance in the Global Economy. 2nd edition. Edinburgh: Edinburgh University Press.
Wilson, R. (1997). Economics, Ethics, and Religion: Jewish, Christian, and Muslim Economic Thought. Basingstoke: Macmillan in association with University of Durham.
Wilson, R. (2002). Parallel between Islamic and ethical banking. Review of Islamic Economics, 11: 51-62.
Wilkison, D., & Birmingham, P. (2003). Using Research Instruments: A Guide for Rrsearchers. London Routledge.
Yousri, A. A. -R. (2005). Sustainable development: An evaluation of conventional and Islamic perspectives. In Islamic Perspectives on Sustainable Development, edited by M. Iqbal, 22- 51. United Kingdom: Palgrave Macmillan.
Zaher, T. S., & Hassan, M. K. (2001). A comparative literature survey of islamic finance and banking. Financial Markets, Institutions and Instruments, 10(4), 155-199.
Zeithaml, V. A., Berry, L, L., & Parasuraman. A. (1991). The nature and determinants of customer expectations of service. Marketing Science Institute Cambridge, Mass. Report, 91-113 (91-113).
Islamic Economics Studies Bi-quarterly Journal
Volume 14, Issue 2 - Serial Number 28
May 2022
Pages 367-406