Journal of Islamic Finance <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 reviewer's comments. </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=""></a> is licensed under a <a href="">Creative Commons Attribution 4.0 International License</a>.</p> IIUM Press, International Islamic University Malaysia en-US Journal of Islamic Finance 2289-2109 Assessment of 5Cs Relationship towards Credit Risk Management: Evidence from Islamic Banks <p>This study aims to provide a new approach to assess the Character, Capacity, Capital, Condition, and Collateral (5Cs) variables towards the Islamic Bank Credit Risk Management from the Islamic Banks in Nigeria. The study used a quantitative approach using a structured questionnaire; 310 individuals participated. Data are sourced from Islamic Bank staff, customers of Islamic Bank, experts from financial institutions and some Shariah scholars of the advisory board of Islamic banks. The study employed structural Equation Modeling (SEM), using AMOS and SSPS, are used for analysis. The results indicate a positive relationship between Character, Capacity, Capital, Condition, and Collateral (5Cs) and Islamic Bank Credit Risk Management; such can also control and mitigate Credit Risk in an Islamic Bank in Nigeria. In the managerial part, such credit risk should be considered vital in examining and controlling credit risk-mitigation. The paper indicates a positive and significant relationship between the Character, Capacity, Capital, Condition, and Collateral (5Cs) and Islamic Bank’s Credit Risk Management. The authors innovatively use a unique sample to assess the relationship between 5Cs and Islamic Bank’s Credit Risk Management. Even though 5Cs and Credit Risk Management are well-known in the conventional financial concept system, while have not been elaborate on Islamic Banks as the paper attempts to fill the gap. The study is limited to Northern Nigeria and did not cover the entire regions of the country due to the resource constraints and short study period.</p> Tijjani Muhammad Abatcha Melemi Copyright (c) 2021 IIUM Press 2021-06-30 2021-06-30 10 1 76 89 Islamic P2P Crowdfunding (IP2PC) Platform for the Development of Paddy Industry in Malaysia: An Operational Perspective <p>Crowdfunding for agriculture provides a new social financing medium for agricultural financing, which is essential for promoting farmland revitalization and targeted poverty reduction among paddy farmers. The government sector and the social security system are unable to meet the demands of this growing systemic problem. In addition, paddy farmers in most developing countries strive to attain their basic needs and are among the most impoverished communities on the planet. This paper aims to present an Islamic P2P crowdfunding model as an alternative financing solution for paddy farmers in Malaysia. Besides, a standard operations procedure (SOP) has also been developed to ensure efficient management of the paddy project investments. This study uses document research methodology to analyze the related papers, journal articles and other published sources. Also, the literature on the financing gap faced by farmers and the crowdfunding solutions in agriculture has been reviewed critically and used to develop an alternative model. This study's findings reveal that Islamic P2P crowdfunding is expected to provide paddy farmers in Malaysia with an alternative source of funds to meet their liquidity constraints and finance their small businesses. The paper has also proposed an end-to-end operational procedure that can ensure the complete protection of different players' rights in the platform. The proposed model and SOPs can help policymakers and regulatory authorities to develop the required policies and create the needed agricultural crowdfunding regulations.</p> Hassan Azganin Salina Kassim Adam Auwal Saad Copyright (c) 2021 IIUM Press 2021-06-30 2021-06-30 10 1 65 75 The Relevance of Conventional and Islamic Crowdfunding as Financing Instruments for SMEs <p>Small and Medium Enterprises (SMEs) are the backbone of economy in most of the countries across the globe. SMEs support towards the economic growth and development has influenced country’s GDP. Despite that, the sector still faces numbers of main constraints including lack of access to credit from formal financial institution. Nevertheless, with the advancement of financial technology, crowdfunding has emerged as an alternative platform that enables SMEs to seek fund for their business. This paper provides an overview to examine the relevance of conventional crowdfunding and Islamic crowdfunding as a financing instrument for SMEs and determine the appropriate model in crowdfunding that best suits to finance SMEs. This research applied the qualitative approach by reviewing the latest key literature in crowdfunding. Hence, the results show that the best model to be adopt as a financing tools among SMEs is equity-based crowdfunding either for conventional or Islamic crowdfunding platform.</p> Maryam Sakinah Md Faudzi Julienty Abu Bakar Shuhymee Ahmad Copyright (c) 2021 IIUM Press 2021-06-30 2021-06-30 10 1 59 64 The Level of Acceptance and Awareness of Takaful in Nigeria <p>This study investigates the factors determining consumers’ acceptance of takaful (Islamic insurance) in Nigeria. The main objective is to explore the Shariah view, price, service quality, attitude, awareness, subjective norm and perceived behavior control of Nigerian citizens towards the acceptance of takaful services in the country. One of the obstacles currently facing the takaful industry in Nigeria is the lack of awareness about takaful products. To examine the acceptance and awareness of takaful in Nigeria, 209 questionnaires were distributed to respondents in five states, including Lagos, Abuja, Kano, Kaduna, and Enugu; and the data collected were analyzed using SPSS, version 25. The results show that Shariah view, locality, consumer acceptance, service quality, attitude, awareness, subjective norm, and perceived behavior control are the factors influencing the awareness and acceptance level of takaful in Nigeria. The implication of this study is that the majority of respondents do not possess sufficient information to differentiate between conventional and Islamic insurance. As such, for proper implementation and development of takaful in Nigeria, it is important for the policymakers and other stakeholders to provide enough information about the takaful services, products, and operating system to the general public. The future of takaful industry in the country will be determined by a proper understanding of the operating system and the rights of participants as well as other stakeholders, including customers and insurance regulatory bodies.</p> Lawal Hussein Kehinde Ashurov Sharofiddin Copyright (c) 2021 IIUM Press 2021-06-30 2021-06-30 10 1 46 58 Blue Sukuk as a Solution to Indonesia Maritime Economic Crisis due to the Global Covid Pandemic <p>The aim of this paper is to analyze and provide a solution related to the maritime economic crisis in Indonesia which occurred due to the COVID-19 pandemic, affecting almost all countries in the world. The research technique used in this research is descriptive qualitative using secondary data. As the largest archipelagic country in the world, the ocean plays an important role in Indonesia. The marine and fisheries sector contributes to food security, livelihoods, and foreign exchange earnings. Currently, more than 6 million people are involved in Indonesia's maritime and fisheries sector, including small businessmen and fishermen. Since the COVID-19 pandemic, it has disrupted Indonesia's economic sector, one of which is in the fisheries sector. According to the Coordinating Ministry for Maritime Affairs and Investment, the COVID-19 pandemic has caused a decline in the price of fishery products in several national fishing ports by up to 50 percent. This price decline occurred due to distribution disruptions caused by the emergency to contain the spread of COVID-19. This policy resulted in the accumulation of fish stocks in almost all cold storage. Thus, a stimulus is needed so that this crisis will not harm fishermen and other related industry players further. Blue sukuk can be a solution to this problem. With the issuance of the blue sukuk, it can become a reserve fund in the maritime sector and can be a long-term solution for the government in increasing Indonesia's maritime potential.</p> Asep Maulana Firdayanti Zahro Mar’atus Sholikah Copyright (c) 2021 IIUM Press 2021-06-30 2021-06-30 10 1 36 45