Journal of Islamic Finance https://journals.iium.edu.my/iiibf-journal/index.php/jif <p><em>Journal of Islamic Finance</em> (JIF), published biannually (<strong>June</strong> and <strong>December</strong>), is a <strong><em>double blind peer-reviewed</em></strong> open-access journal of the IIUM Institute of Islamic Banking and Finance (II<em>i</em>BF), International Islamic University Malaysia (IIUM). </p> <p>The journal is designed to provide a platform for researchers, academicians and practitioners who are interested in new knowledge and discussing ideas, issues and challenges in the fields of Islamic banking, finance, accounting, business and economics.</p> <p><strong>Journal Scope</strong></p> <p>The scope of the journal includes, but is not limited to, Islamic banking and finance, Islamic capital markets, Islamic wealth management, issues on Shari'ah implementation and practices of Islamic banking and finance, zakat, waqf, takaful and comparative analysis of Islamic and conventional financial institutions. </p> <p><strong>Publication Frequency</strong></p> <p>The journal is published biannually in <strong>June</strong> and <strong>December </strong>in English.</p> <p><strong>Peer Review Process</strong></p> <p>A manuscript undergoes a double-blind review process with reviews managed by the Editorial team. Authors are required to upload revised versions and reply to the reviewers' comments. </p> <p>The final decision of the manuscript is subject to the Editor-in-Chief's decision after the reviewing process.</p> <p><strong>Indexing</strong></p> <p>Malaysian Citation Index (MyCite)</p> <p>Islamic World Science Citation Database (ISC)</p> <p>Index Islamicus</p> <p>Almanhal </p> <p><strong>Privacy Statement</strong></p> <p>The names and email addresses entered in this journal site will be used exclusively for the stated purposes of this journal and will not be made available for any other purpose or to any other party.</p> <p><strong>Disclaimer</strong></p> <p>Opinions expressed in articles and creative pieces published in this Journal are those of the authors and do not necessarily reflect the views of the editors, the editorial board or the publisher.</p> <p>Journal of Islamic Finance at <a href="https://journals.iium.edu.my/iiibf-journal/index.php/jif">https://journals.iium.edu.my/iiibf-journal/index.php/jif</a> is licensed under a <a href="http://creativecommons.org/licenses/by/4.0/">Creative Commons Attribution 4.0 International License</a>.</p> IIUM Press, International Islamic University Malaysia en-US Journal of Islamic Finance 2289-2109 The Role of Istihsan in Applying Maslahah in Islamic Finance https://journals.iium.edu.my/iiibf-journal/index.php/jif/article/view/640 <p>This paper identifies the role of <em>istihsan </em>in Islamic finance that should be emphasized to strengthen the element of <em>Shariah </em>compliance. Over the period, it is argued that applying <em>Shariah </em>rulings in Islamic finance has witnessed several challenges and difficulties resulting in some aspects may need toleration for the sake of <em>maslahah</em>. The data of this study is based on library research, by referring to classical and contemporary books of <em>usul fiqh</em>, academic and non-academic works and related resolutions from the BNM and SCM. The findings reveal that the role of <em>istihsan </em>can be manifested through providing an exceptional ruling from general rulings, considering modern norms of business practices before applying rulings, harmonizing between <em>Shariah </em>and civil laws, and adapting Islamic finance within the change of circumstance. While this study utilizes limited secondary data as well as it focuses on Malaysia, it engages with the real Islamic finance issues in this country. Thus, this study is hoped to benefit many parties who involve directly and indirectly in this industry, particularly to deeply understand the application of <em>Shariah </em>principles in Islamic finance.</p> Muhammad Shahrul Ifwat Ishak Syairazi Muhammad Husni Mohd Sharoni Copyright (c) 2022 IIUM Press 2022-06-30 2022-06-30 11 1 113 120 Measuring Financial Knowledge Among Muslim Women: The Case of Indonesia and Malaysia https://journals.iium.edu.my/iiibf-journal/index.php/jif/article/view/639 <p>Financial literacy is taking an important role in supporting the development of women's empowerment. To determine the action for financial education for women, the level of financial literacy among women is needed to be observed. This study aims to measure the level of financial knowledge among Muslim women in Indonesia and Malaysia. A quantitative method of study is employed by distributing 411 questionnaires that consists of Islamic financial knowledge and general financial knowledge questions. As the sample of this study focuses on women in Indonesia and Malaysia, the findings of this study could not be generalized to other Muslim women in other countries. The research found that Muslim women in Indonesia and Malaysia have a moderate Islamic and general financial knowledge level. Several areas of weaknesses found in this study are; the understanding of the role of parties in mudharabah contract, knowledge on zakat, and the simple time value of money calculation. These three areas of weaknesses could be emphasized in the financial education program.</p> Aulia Arifatu Diniyya Salina Kassim Saidatolakma Mohd Yunus Copyright (c) 2022 IIUM Press 2022-06-30 2022-06-30 11 1 102 112 The Role of Islamic Fintech P2PL in Increasing Inclusion and Financial Literacy of MSMEs https://journals.iium.edu.my/iiibf-journal/index.php/jif/article/view/638 <p>This study aims to analyze the role of Islamic financial technology (fintech) peer-to-peer lending (P2PL) in increasing the inclusion and financial literacy of Micro, Small, and Medium Enterprises (MSMEs). The presence of fintech in Indonesia provides various benefits, especially when the unbankable is still widely spread in various regions. No exception for MSME players, P2PL fintech services provides an easier option for them to get access to funding. The research sample is on three P2PL-based fintech that uses Shariah principles in Indonesia. Data were obtained through interviews and relevant literature sources. The analytical method used is descriptive qualitative. The results of the study show that there are at least four roles that Shariah P2PL fintech can do to increase MSMEs financial inclusion, such as: providing digital-based financial services, facilitating financing application requirements, collaborating with various businesses groups, and collaborating with digital ecosystems. Meanwhile, to improve literacy, P2PL fintech socializes to regions, holds seminars and webinars, uses digital media to optimize fintech, and plays an active role in financial inclusion activities organized by various parties.</p> Neni Dwijayanti Muhammad Iqbal Muhammad Zulfikar Copyright (c) 2022 IIUM Press 2022-06-30 2022-06-30 11 1 94 101 COVID-19 on Performance of Islamic Banks in Fintech and Digitalization Era https://journals.iium.edu.my/iiibf-journal/index.php/jif/article/view/637 <p>This study attempts to provide insight on risk and opportunities for Islamic banks arising from COVID-19 pandemic by using document analysis approach. The COVID-19 pandemic has increased banking risk. The paper emphasizes the impact of the crisis on credit risk as historically thought as the most significant risk driver. Increased credit risk in Islamic financial institutions (IFIs) is due to broad-based deterioration of economic conditions affecting multiple sectors, resulting in a general increase of non-performing financing (NPF) balances and charge-offs. Further, it was found that banks have suffered more not only relative to other sectors, but also in comparison with previous crises. In addition, some authors observe that banks that had entered the crisis with the highest level of credit risk, measured in terms of credit default swap (CDS) spreads rise, were most hit. On the other hand, the pandemic has proved beyond doubt the value of digital services that minimize or eliminate direct human contact. The power of digitalization can facilitate outreach to even the most vulnerable population. Islamic financial institutions may seize this opportunity to expedite the digitalization of their operations either using their own resource or by joint venturing with technology companies.</p> Ilinka Antova Copyright (c) 2022 IIUM Press 2022-06-30 2022-06-30 11 1 81 93 An Innovative AI Blockchain Framework for Islamic Microfinancing https://journals.iium.edu.my/iiibf-journal/index.php/jif/article/view/636 <p>The digital economy has undergone significant transformations with blockchain becoming a household name in the fintech environment. Besides powering cryptocurrencies, blockchain technology enables power transactions in a variety of forms and enables decentralization which may reduce transaction costs. Islamic microfinance has become important with many new institutions arising in order to satisfy the demand for microfinance services while ensuring that these services comply with the Shariah Law. Cost of transactions and low degree of digitalization are the major obstacles with current solutions. We present an innovative blockchain artificial intelligence framework for the optimization of Islamic microfinance service provisioning as well as providing financial and transaction services in order to ease transactions and make them more secure and readily available. The framework was evaluated on a large dataset from the Central African Republic, and we could demonstrate strong performance of the AI-blockchain framework. The framework provides a viable solution for Islamic microfinancing to enhance transactions services and overcome some of the existing challenges with Islamic finance.</p> Klemens Katterbauer Hassan Syed Laurent Cleenewerck de Kiev Copyright (c) 2022 IIUM Press 2022-06-30 2022-06-30 11 1 67 80