In this essay we will discuss about Internet Banking.
Banking capital — Islamic banking Banking capital — Islamic banking The banking industry is one of the business units that need to be managed Essay finance banking and yet still refers to the rules set by the regulator. At the end of the estuary of the banking business, both conventional and Islamic banks must perform well as a company, and the important thing in this industry is the management of capital adequacy ratio CAR in the risk sector of banking industry.
Capital is a mean to finance income-producing assets and the protector of stability. From the point of view of efficiency and return, capital are Essay finance banking of bank funding sources that can be used directly to purchase assets and also to raise other funds.
With this study the authors wanted to fill the void in the context of the present study is to see Islamic banking strategy in the management of the fulfillment of capital CAR not only from the internal side but also includes influences from the external side.
Kwemenoted the importance of capital adequacy for banking business activities. This means that banks will be able to absorb the liquidity risk in the market, if it has a capital adequacy ratio CAR.
To encourage the prudent management of the risks associated with the structure of the balance sheet, the authorities in most countries introduce specific capital adequacy requirements.
Meanwhile, Basel III is no improvement associated with increasing riskweighted capital requirements divided into Tier 1 and Tier 2 and nonrisk-weighted leverage ratio.
This indicates that the ability to maintain the CAR is very important for the health of a bank. Interesting study also done by Siti Rochmah et al regarding the financial performance of Islamic banks and conventional banks.
Now, the conditions are different. The financial performance of Islamic banks are not better than commercial banks. From several studies including that conducted by Erico and Partners Farahbaksh states that the rules of economic authority for sharia bank can basically use the same size with the bank, although in some cases the management of Islamic banks and conventional is similar.
Said conducted a study on how the application of the system of Islamic banking ranging from the establishment of the beginning of the establishment of the Dubai Islamic Bank in the United Arab Emirates, then continues in Jidda, Saudi Arabia, Egypt, Sudan, Kuwait, Bahrain and other countries.
The need to put forward that are relevant to my research is put forward a study conducted in Indonesia are carried out by Umar, Majid and Rulindo during to at 21 private banks with DEA method.
With a sample consisting of two Islamic banks and conventional banks remaining. Likewise research done by Saifullah, on found that Islamic banks are better in business development, profitability, liquidity and solvency compared with conventional banks.
In this study the approach to measure efficiency was still simple. The purpose of this paper is to present conceptual framework to see what factors are affecting the Capital Adequacy Ratio, which include internal factors which consists of some financial ratios, then Size banks and external factors, namely inflation rate.
Many studies, linking the effect of achieving the CAR management, attributed to internal factors and financial ratios. But, not many who measure CAR, from internal and external at the same time, the macroeconomic factors in this study is the inflation rate.
Lia Amaliawati and Lasmanah addressed the issue of Capital Adequacy Ratio and some other financial ratio bu there, CAR is not as dependent variables but parallel with the other variables acts an antecedent and also was associated with bank management efficiency.
Many studies, linking the effect of achieving the CAR management, associated with its financial ratios. But, from the reference study, there has been no or not much that incorporate elements of management initiatives, namely the management of measurement of the size of CAR in the bank.
In one article Cohen,the author fill the research gap on this side. Also Schaffer delivered on banking studies which incorporate at least the macro element in the management of his CAR, has been a differentiator with previous studies, the researchers conducted answers to the current debate between the management of CAR.
The dynamics of the market risk in theIndonesia banking structure requires to be able to manage capital adequacy ratio CAR which is able to adapt to external shocks.
Research on the CAR, especially in Islamic banking has been done by several researchers, although not much compared to conventional banks, but in this study the researchers wanted to know CAR associated with the external dynamics that inflation rate. Empirical studies on the determinants of banking Saudi Arabia against CAR Polat and Al-khalaf, as well as the idea to include macro policies factor into it Cohen and Scatigna,an interesting topic for research on Islamic Banking in Indonesia.
Some studies usually do so partially, this is where the researchers want to find a gap theory that has never been done by other researchers. Many studies, linking the effect of achieving the CAR management of both conventional and Islamic banking more just through its financial ratios or internal factors.
But there has been no or perhaps rare that CAR management for Islamic banks that combined with external factors. The purpose of this study is to propose a more comprehensive research model to complete some previous research that can be developed more fully and comprehensively to determine the determinant factors on the capital adequacy of Islamic banks.
Because operates whether or reliability of a bank, one of which is strongly influenced by the condition of capital adequacy. Lia Amaliawati and Lasmanah addressed the issue of Capital Adequacy Ratio and some other financial ratio but here, CAR is not as dependent variables but parallel with the other variables as antecedent and also was associated with bank management efficiency.
Bank capital has three functions Johnson and Johnson, which are: As a buffer to absorb operational losses and other losses. In this function of capital provides protection against failures or bank losses and the protection of depositors. As a basis for the set lending limit.
This is an operational consideration for the central bank, as the regulator to limit the amount of lending to each individual bank customers.Nov 16, · The topics for research in finance and banking are only limited by imagination.
With today’s economy at crisis level the research availability is . In my essay, I will try to highlight the basic principles of the Islamic finance, the reasons of the restriction of interest, the most important tools used by Islamic banks in economic activities and brief explanation of them, and finally my view point of the probable future improvement of the Islamic financial system.
Introduction A bank refers to a financial institution that accepts deposits and channels the money into lending activities (Lewis, ). Ethics refers to the principles of right and wrong that are accepted by an individual or a social group ((Lewis, ).).
This free Finance essay on Essay: Mobile banking is perfect for Finance students to use as an example. Aug 25, · Home > Sample Finance Papers > Internet Banking Essay Internet Banking Essay.
August 25th, Leave a comment Go to comments. Internet banking is the new method of banking using the new technologies available in the world today. Instead of needing to travel into a local branch of your bank, the Internet allows you to do a wide.
Essay Finance Questions and Answers. TUTORIAL 1 - TUTORIAL DISCUSSION QUESTIONS 2. (a) Discuss the role of money in a financial system. • money is a financial asset that facilitates financial and economic transactions • a medium of exchange—swapped for goods and services • a store of value—wealth is held or .