ISSN: 2222-6990
Open access
Waqf is an Islamic financial mechanism that can improve the quality of the Islamic financial system. The Islamic banking system's operation using waqf practices such as creating waqf banks (WB) can contribute to the development of the Islamic financial and economic system. However, until now, Malaysia still does not have a WB. In line with this, the main objective of this study is to propose a model that focuses on how to develop the new WB Operational Structural model, which has to be in line with shariah law. This study is a qualitative study using an exploratory design. This study involved the collection of primary and secondary data. Primary data were obtained through face-to-face interviews using semi-structured questions on waqf institutions executives, Islamic bank managers, and Muslim scholars to indicate WB operational structure development. Secondary data involves document sources such as books, magazines, journals, and others. The data were then analyzed by qualitative content analysis. The study results found that the bank endowment structure model should consist of the consumer banking department (CnBD), corporate banking department (CBD), and the bancassurance department. It is hoped that this bank wakaf model can be used as a guide for banks and national leaders in their efforts to develop a wakaf bank in Malaysia.
Ab. Aziz, M. R., & Yusof, M. A. (2019). Deposit and Financing Instruments Through Waqf Bank for Fostering Real Economy and Social Sustainability. International Journal of Islamic Business Ethics, 4(2), 611. https://doi.org/10.30659/ijibe.4.2.611-626
Ab. Aziz, M. R. A., & Yusof, M. A. (2014). Tendency Among Public And Students For The Establishment Of Islamic Waqf Bank. Seminar Waqf Iqlimi 2014, 593–602. http://ddms.usim.edu.my/handle/123456789/9903
Ab. Aziz, M. R. A., & Yusof, M. A. (2014). Examining the Relationship between Level of Income and Appointment of Agent in Collecting Waqf Fund. International Journal of Trade, Economics and Finance, 5(2), 167.
Abe, M., Troilo, M., Batsaikhan, O., & Abe, M. (2015). Financing small and medium enterprises in Asia and the Pacific. Journal of Entrepreneurship and Public Policy, 4(1), 2–32. https://doi.org/10.1108/JEPP-07-2012-0036
Abeysekera, N. (2011). Relationship Marketing Perspective on Salespersons ’ Transformational Leadership Behavior Effect. Contemporary Management Research, 7(2), 143–156.
Ali, P., Ramsay, I., & Read, C. (2014a). Behavioural Law and Economics: Regulatory Reform of Consumer Credit and Consumer Financial Services. Ssrn, 43, 298–343.
https://doi.org/10.2139/ssrn.2524131
Aziz, M. R. A., & Yusof, M. A. (2014b). Examining the Relationship between Level of Income and Appointment of Agent in Collecting Waqf Fund. International Journal of Trade, Economics and Finance, 5(2), 167–169. https://doi.org/10.7763/IJTEF.2014.V5.363
Ilmi, M. B. (2018). The analysis of the effect of Islamic financing and labor relationship development toward nonperforming financing in Islamic banks. Journal of Islamic Accounting and Business Research, 9(4), 648–660. https://doi.org/10.1108/JIABR-02-2015-0002
Balfour, R., Joo, S. J., Whited, H. hui I. H., & Lin, J. W. (2015). Assessing the comparative performance of banking branches. Benchmarking, 22(5), 963–972.
https://doi.org/10.1108/BIJ-04-2013-0048
Bandyopadhyay, A., & Saha, A. (2011). Distinctive demand and risk characteristics of residential housing loan market in India. Journal of Economic Studies, 38(6), 703–724. https://doi.org/10.1108/01443581111177402
Bergendahl, G. (1995). The profitability of bancassurance for European banks. International Journal of Bank Marketing, 13(1), 17–28.
Chhina, R. K. (2016). Managing money laundering risks in commercial letters of credit Are banks in danger of non-compliance?? Journal of Money Laundering Control, 19(2), 158–168. https://doi.org/10.1108/JMLC-05-2015-0019
Chowdhury, M. S. R., Ghazali, M. F., & Ibrahi, M. F. (2011). Economics of cash waqf management in Malaysia : A proposed cash waqf model for practitioners and future researchers. African Journal of Business Management, 5(30), 12155-12163.
Çokgezen, M., & Kuran, T. (2015). Between consumer demand and Islamic law: The evolution of Islamic credit cards in Turkey. Journal of Comparative Economics, 43(4), 862–882. https://doi.org/10.1016/j.jce.2015.07.005
Corvoisier, Sandrine; Gropp, R. (2002). CENTRAL AND RETAIL INTEREST RATES. Journal of Banking & Finance, 26(11), 2115–2189.
Darus, F., Shukri, A. N. H., Yusoff, H., Ramli, A., Zain, M., & Abu Bakar, N. A. (2017). Empowering social responsibility of Islamic organizations through Waqf. Research in International Business and Finance, 42(July), 959–965.
https://doi.org/10.1016/j.ribaf.2017.07.030
Deol, H. S. (2009). Strategic environment and intellectual capital of Indian banks. Journal of Intellectual Capital, 10(1), 109–120. https://doi.org/10.1108/14691930910922932
Dusuki, A. W. (2008). Banking for the poor: The role of Islamic banking in microfinance initiatives. Humanomics, 24(1), 49–66. https://doi.org/10.1108/08288660810851469
Fan, B., Ji, H., Wei, J., & Lambert, S. (2018). Development of tactical solutions for the e-credit card issuing industry. International Journal of Accounting and Information Management, 26(1), 115–131. https://doi.org/10.1108/IJAIM-02-2017-0014
Griffin, P. A., Hong, H. A., & Ryou, J. W. (2018). Corporate innovative efficiency: Evidence of effects on credit ratings. Journal of Corporate Finance, 51(May), 352–373. https://doi.org/10.1016/j.jcorpfin.2018.06.007
Hachicha, N., & Ben Amar, A. (2015). Does Islamic bank financing contribute to economic growth? The Malaysian case. International Journal of Islamic and Middle Eastern Finance and Management, 8(3), 349–368. https://doi.org/10.1108/IMEFM-07-2014-0063
Hamza, H., & Saadaoui, Z. (2013). Investment deposits, risk-taking and capital decisions in Islamic banks. Studies in Economics and Finance, 30(3), 244–265. https://doi.org/10.1108/SEF-Feb-2012-0016
Htay, S. N. N., Sadzali, N. S., & Amin, H. (2015). An analysis of the viability of micro health takaful in Malaysia. Qualitative Research in Financial Markets, 7(1), 37–71. https://doi.org/10.1108/QRFM-09-2013-0030
Hussain, J., Millman, C., Matlay, H., Hussain, J., Millman, C., & Matlay, H. (2006). SME financing in the UK and in China?: a comparative perspective. Journal of Small Business and Enterprise Development, 13(4), 584–599. https://doi.org/10.1108/14626000610705769
Iqbal, M., Nisha, N., & Rashid, M. (2018). Bank selection criteria and satisfaction of retail customers of Islamic banks in Bangladesh. International Journal of Bank Marketing, 36(5), 931–946. https://doi.org/10.1108/IJBM-01-2017-0007
Isazade, A. R. (2009). Azerbaijan: Deposit insurance system. Journal of Financial Regulation and Compliance, 17(3), 318–335. https://doi.org/10.1108/13581980910972250
Jing-bo, S., & Ke-ke, C. (2011). Procedia Engineering Research on the measurement of customer equity of corporate banking business. Procedia Engineering, 15(2011), 4790–4794. https://doi.org/10.1016/j.proeng.2011.08.895
Khan, M. S. N., Hassan, M. K., & Shahid, A. I. (2008). Banking Behavior of Islamic Bank Customers in Bangladesh. Journal of Islamic Economics, Banking and Finance, 3(2), 159–194. https://doi.org/10.1108/17538390810901131
Kleftouri, N. (2014). Meeting the rationale of deposit protection system. Journal of Financial Regulation and Compliance, 22(4), 300–317. https://doi.org/10.1108/JFRC-03-2013-0009
Mahat, M. A., Jaaffar, M. Y., & Rasool, M. S. A. (2015). Potential of Micro-Waqf as an Inclusive Strategy for Development of a Nation. Procedia Economics and Finance, 31(15), 294–302. https://doi.org/10.1016/S2212-5671(15)01193-4
Mahdzan, N. S., Zainudin, R., & Au, S. F. (2017). The adoption of Islamic banking services in Malaysia. Journal of Islamic Marketing, 8(3), 496–512. https://doi.org/10.1108/JIMA-08-2015-0064
Mohammad, M. T. S. (2011a). Towards an Islamic Social (Waqf) Bank. International Journal of Trade, Economics and Finance, January 2011, 381–386.
https://doi.org/10.7763/ijtef.2011.v2.135
Mohammad, M.T.S. (2011b). Permissibility Of Establishing Waqf Bank In Islamic Law. 2010 International Conference on Sociality and Economics Development, 10(Icsep), 250–254.
Mohd Isa, M. Y., Voon Choong, Y., Yong Gun Fie, D., & Abdul Rashid, M. Z. H. (2018). Determinants of loan loss provisions of commercial banks in Malaysia. Journal of Financial Reporting and Accounting, 16(1), 24–48. https://doi.org/10.1108/JFRA-03-2015-0044
Mullineux, A. (2009). The regulation of British retail banking utilities. Journal of Financial Regulation and Compliance, 17(4), 453–466.
https://doi.org/10.1108/13581980911004406
Mushtaq, S., & Siddiqui, D. A. (2016). Effect of interest rate on economic performance: evidence from Islamic and non-Islamic economies. Financial Innovation, 2(1), 9. https://doi.org/10.1186/s40854-016-0028-7
Narteh, B. (2013). SME bank selection and patronage behaviour in the Ghanaian banking industry. Management Research Review, 36(11), 1061–1080.
https://doi.org/10.1108/MRR-06-2012-0147
Patro, S. (2013). ICICI Bank: Brand Building in Retail Banking. Management and Labour Studies, 38(3), 277–295. https://doi.org/10.1177/0258042X13509748
Paul Cavelaars, J. P. (2012). Follow the money What does the literature on banking. Journal of Financial Regulation and Compliance, 20(4), 402–416.
https://doi.org/10.1108/13581981211279354
Philippe, A., Philippe, B., & Romain, R. (2009). Exchange Rate Volatility and Productivity Growth: The Role of Financial Development. Journal of Monetary Economics, 56(4), 494–513.
Proença, J. F., & Castro, L. M. De. (2000). Cross boundary relationships in Portuguese banking and corporate financial services. International Journal of Bank Marketing, 18(7), 338–346.
Rawashdeh, O. H., Azid, T., & Qureshi, M. A. (2017). Philanthropy, markets, and Islamic financial institutions: a new paradigm. Humanomics, 33(4), 563–578. https://doi.org/10.1108/H-08-2016-0063
Repousis, S. (2015). Regulatory framework and deposit – investment guarantee fund in Greece. Journal of Financial Regulation and Compliance, 23(1), 18–30. https://doi.org/10.1108/JFRC-07-2013-0023
Ridhwan, M., Aziz, A., & Yusof, M. A. (2014). An Initial Study on Student’s Need towards Islamic Waqf Bank for Education. International Conference on Arts, Economics and Management (ICAEM’14), March 22-23, 71–74.
https://doi.org/10.15242/icehm.ed0314027
Ridhwan, M., Aziz, A., Yusof, M. A., & Johari, F. (2014). Proclivity Among Students for the Establishment of Islamic Waqf Bank. International Conference on Business, Sociology and Applied Sciences (ICBSAS’14), 36–39. https://doi.org/10.15242/icehm.ed0314533
Ridhwan, M., Aziz, A., Yusof, M. A., Johari, F., Ramli, A., & Sabri, H. (2017). The Relief of Higher Education Loan through Islamic Waqf Bank. Asian Social Science, 10(22), 175–181. https://doi.org/10.5539/ass.v10n22p175
Sufian, F., & Zulkhibri, M. (2015). The Nexus between Economic Freedom and Islamic Bank Profitability in the MENA Banking Sectors. Global Business Review, 16, 58–81. https://doi.org/10.1177/0972150915601256
Thunman, C. G. (1992). Corporate Banking?: Services and. International Journal of Bank Marketing, 10(2), 10–16.
Tumwine, S., Akisimire, R., Kamukama, N., & Mutaremwa, G. (2015). A borrowing cost model for effective performance of SMEs in Uganda. World Journal of Entrepreneurship, Management and Sustainable Development, 11(2), 74–89.
https://doi.org/10.1108/WJEMSD-03-2014-0009
Went, P. (2003). A quantitative analysis of qualitative arguments in a bank merger. International Review of Financial Analysis, 12(2003), 379–403. https://doi.org/10.1016/S1057-5219(03)00031-0
Williams, B., & Prather, L. (2010). Bank risk and return: The impact of bank non-interest income. International Journal of Managerial Finance, 6(3), 220–244. https://doi.org/10.1108/17439131011056233
Yusof, M. A., & Ab. Aziz, M. R. (2015). Scrutinizing the Method of Contribution for Islamic Waqf Bank Fund. Journal of Islamic Economics Banking and Finance, 11(1), 181–192. https://doi.org/10.12816/0026024
Yusof, M. A., Ab. Aziz, M. R., & Johari, F. (2013). The Relationship Between Level of Income and Willingness of Muslim Community To Contribute for Islamic Waqf Bank. 5th Islamic Economics System Conference (IECONS 2013), “Sustainable Development Through The Islamic Economics System”, Organized, September, 4–5.
Yusof, M. A., Ridhwan, M., Aziz, A., & Ramli, Y. (2013). EXPLORING NEW OPPORTUNITY AND MECHANISM FOR ISLAMIC WAQF BANK MODEL. 2nd Applied International Business Conference (AIBC2013), 805–816.
Zulkhibri, M. (2018). The impact of monetary policy on Islamic bank financing: bank-level evidence from Malaysia. Journal of Economics, Finance and Administrative Science, JEFAS-01-2018-0011. https://doi.org/10.1108/JEFAS-01-2018-0011
In-Text Citation: (Yusof et al., 2022)
To Cite this Article: Yusof, M. A., Hassan, S. H. M., Musa, M. S., Roslan, M. N. H., & Ayub, M. N. (2022). Waqf Bank Discussion Series: An Operational Structure Development for Economic Growth in Malaysia. International Journal of Academic Research in Business and Social Sciences, 12(1), 2698–2707.
Copyright: © 2022 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode