Purpose: This study examines the opportunities and challenges of sharia-based regional development bank spin-offs in supporting economic growth and income distribution through a board of commissioner’s approach. Research design, data, and methodology: The research design is qualitative research with the main data collection technique through in-depth interviews. Results: The results of the study show that Bank Nagari can support the performance of the West Sumatra government, especially in regional finance. The positive influence is shown in the benefit aspect of 31% and the opportunity of 28% which is the priority value. The challenges that must be faced are technology services, improving the quality of human resources, socialization, and application of local wisdom which is by the philosophical values of the people of West Sumatra Adat Basandi Syara’ Syara’ Basandi Kitabullah. Conclusions: It can be concluded that the local government of West Sumatra has an essential contribution to the conversion of Bank Nagari to RDB Syariah as a whole. The expected implication is that the local government and shareholders cooperate well in supporting the transformation to realize West Sumatra Mandani through the populist economy of the people of West Sumatra.
Abduh, M., & Omar, M. A. (2012). Islamic banking and economic growth: the Indonesian experience. International Journal of Islamic and Middle Eastern Finance and Management, 5(1), 35–47. https://doi.org/10.1108/17538391211216811
Adha, S.I., Furqani, H., & Adnan, M. (2020). Konversi Bank Konvensional Menjadi Bank Syariah Di Indonesia. Journal of Sharia Economics, 1(1), 37–57. https://doi.org/10.22373/jose.v1i1.626
Afandi, M. A., & Amin, M. (2019). Islamic Bank Financing and Its Effects on Economic Growth: A Cross Province Analysis. Signifikan: Jurnal Ilmu Ekonomi, 8(2), 243–250. https://doi.org/10.15408/sjie.v8i2.10977
Ahmed, F. (2015). Conversion into Islamic banks: jurisprudence, economic and AAOIFI requirements. European Journal of Islamic Finance, 3(December), 1–8. https://doi.org/10.13135/2421-2172/1111
Akbar, S., Shah, S.Z.A, & Kalmadi, S. (2012). An investigation of user perceptions of Islamic banking practices in the United Kingdom. International Journal of Islamic and Middle Eastern Finance and Management, 5(4), 353–370. https://doi.org/10.1108/17538391211282845
Akkas, E., & Asutay, M. (2022). The impact of intellectual capital formation and knowledge economy on banking performance: a case study of GCC’s conventional and Islamic banks. Journal of Financial Reporting and Accounting, 20(1), 789-808. https://doi.org/10.1108/JFRA-08-2021-0251
Alam, M. K., Rahman, M. M., Runy, M. K., Adedeji, B. S., & Hassan, M. F. (2022). The influences of Shariah governance mechanisms on Islamic banks performance and Shariah compliance quality. Asian Journal of Accounting Research, 7(1), 2–16. https://doi.org/10.1108/ajar-11-2020-0112
Amdanata, D. D., & Mansor, N. (2018). Do Political Connections Affect The Performance of Indonesian Regional Development Banks? International Journal of Accounting, Finance and Business, 3(12), 109–118.
Ameraldo, F., Saiful, S., & Husaini, H. (2019). Islamic Banking Strategies In Rural Area: Developing Halal Tourism and Enhancing The Local Welfare. Ikonomika, 4(1), 109–136. https://doi.org/10.24042/febi.v4i1.4211
Anwar, S.M., Junaidi, J., Salju, S., Wicaksono, R., & Mispiyanti, M. (2020). Islamic bank contribution to Indonesian economic growth. International Journal of Islamic and Middle Eastern Finance and Management, 13(3), 519–532. https://doi.org/10.1108/IMEFM-02-2018-0071
Bashir, A.H. M. (1999). Risk and Profitability Measures in Islamic Banks: The Case of Two Sudanese Banks. Islamic Economic Studies, 6(2), 1–24. https://www.researchgate.net/profile/Abdel-HameedBashir/publication/268040345_Risk_and_profitability_measu res_in_Islamic_banks_The_case_of_two_Sudanese_banks/lin ks/56e54fad08ae98445c213daf/Risk-and-profitabilitymeasures-in-Islamic-banks-The-case-of-two
Belal, A. R., Abdelsalam, O., & Nizamee, S. S. (2015). Ethical Reporting in Islami Bank Bangladesh Limited (1983–2010). Journal of Business Ethics, 129(4), 769–784. https://doi.org/10.1007/s10551-014-2133-8
Brata, A. G., Triandaru, S., & Patnasari, Y. (2022). The Spanish Flu Pandemic and Income Distribution in Java: Lessons from the 1920s. Jurnal Ekonomi Malaysia, 56(3), 103–117. https://doi.org/10.17576/jem-2022-5603-06
Budiman, I. (2021). Converting Conventional Banks To Sharia Banks in Aceh: an Effort To Maintain a Stable Economy in the Covid-19 Outbreak. Share: Jurnal Ekonomi Dan Keuangan Islam, 10(1), 24. https://doi.org/10.22373/share.v10i1.8337
Chowdhury, M. S. A., Arafat, Y., & Islam, S. (2020). Impact of Rural Development Scheme of Islami Bank Bangladesh Limited (IBBL) Upon Economic Development of the Rural Poor of Bangladesh. The Millennium University Journal, 5(1), 1–14. http://www.themillenniumuniversity.edu.bd/journal/ index.php/TMUJ/article/view/31
Farhan, O., & Hasan, A. (2023). The Practice of Islamic Bank in Zakat Distribution: The Case of Malaysia. In Innovation of Businesses, and Digitalization during Covid-19 Pandemic (Vol. 488, Issue Icbt, pp. 51–73). London: Springer International Publishing AG. https://doi.org/10.1007/978-3-031-08090-6_3
Furqani, H., & Mulyany, R. (2009). Islamic banking and economic growth: Empirical evidence from Malaysia. Journal of Economic Cooperation and Development, 30(2), 59–74.
Haddad, A., El Ammari, A., & Bouri, A. (2021). Impact of Audit Committee Quality on the Financial Performance of Conventional and Islamic Banks. Journal of Risk and Financial Management, 14(4), 176. https://doi.org/10.3390/jrfm14040176
Hudaefi, F. A., & Badeges, A. M. (2021). Maqāṣid al-Sharīěah on Islamic banking performance in Indonesia: a knowledge discovery via text mining. Journal of Islamic Marketing, 12(3), 809-840. https://doi.org/10.1108/JIMA-03-2020-0081
Iskandar, R., Ramadhan, M. S., Mulyati, M., & Adhim, C. (2022). Income Smoothing Practices at Sharia Banks: An Overview in Islamic Business Ethics. Journal of Business and Management Review, 3(3), 191–207. https://doi.org/10.47153/jbmr33.3112022
Jharkharia, S., & Shankar, R. (2007). Selection of logistics service provider: An analytic network process (ANP) approach. Omega, 35(3), 274–289. https://doi.org/10.1016/j.omega.2005.06.005
Khatirina, Y., Fuadah, L. L., & Azwardi, A. (2021). The analysis of the effects of Bank Soundness Rate, Inflation and Indonesian Bank Rate on the Profit Growth of Regional Development Banks. Accounting and Finance, 2(92), 95–106. https://doi.org/10.33146/2307-9878-2021-2(92)-95-106
Krasner, S. D. (1981). Power structures and regional development banks. International Organization, 35(2), 303–328. https://doi.org/10.1017/S0020818300032458
Ledhem, M. A., & Mekidiche, M. (2020). Economic growth and financial performance of Islamic banks: a CAMELS approach. Islamic Economic Studies, 28(1), 47–62. https://doi.org/10.1108/ies-05-2020-0016
Muhammed, D. D. J. (2013). Introduction to history of Islamic banking in Malaysia. Humanomics, 29(2), 80–87. https://doi.org/10.1108/08288661311319157
Mujahidin, M. (2020). The Potential Of Halal Industry In Indonesia To Support Economic Growth. Al-Kharaj: Journal of Islamic Economic and Business, 2(1), 77–90. https://doi.org/10.24256/kharaj.v2i1.1433
Munthe, M., & Winarto, M. (2021). Perception of Riau Muslim Entrepreneurs on the Merger of Islamic Commercial Banking into Indonesian Islamic Bank Marabona Munthe Abstrak Introduction The growth of Islamic banking over the last three years has increased significantly compared to 2015., Ekonomika Syariah, 5(2), 98–111.
Musa, M. A., Sukor, M. E. A., Ismail, M. N., & Elias, M. R. F. (2020). Islamic business ethics and practices of Islamic banks: Perceptions of Islamic bank employees in Gulf cooperation countries and Malaysia. Journal of Islamic Accounting and Business Research, 11(5), 1009–1031. https://doi.org/10.1108/JIABR-07-2016-0080
Nugrohowati, R. N. I., Fakhrunnas, F., & Haron, R. (2020). Examining Technological and Productivity Change in the Islamic Banking Industry. Pertanika Journal of Social Sciences and Humanities, 28(4), 3355–3374. https://doi.org/10.47836/pjssh.28.4.47
Pambuko, Z. B., & Pramesti, D. A. (2020). The Effectiveness of Bank Aceh Syariah Conversion Decisions Diesyana Ajeng Pramesti. Economica: Jurnal Ekonomi Islam, 11(1), 1–23.
Pasarela, H., Soemitra, A., & Nawawi, Z. M. (2022). Halal Tourism Development Strategy in Indonesia. Konfrontasi Journal: Culture, Economy, and Social Changes, 9(1), 14–26. https://doi.org/https://doi.org/10.33258/konfrontasi2.v9i1.188
Puteh, A., Rasyidin, M., & Mawaddah, N. (2018). Islamic Banks in Indonesia: Analysis of Efficiency. In Proceedings of MICoMS 2017, 1(2), 331–336. https://doi.org/10.1108/978-1- 78756-793-1-00062
Puteri, H. E., Parsaulian, B., & Azman, H. A. (2022). Potential demand for Islamic banking : examining the Islamic consumer behavior as driving factor. International Journal of Social Economics, 49(7), 1071-1085. https://doi.org/https://doi.org/10.1108/IJSE-10-2021-0614
Putra, I. G. C., Novitasari, L. G., Mahaputra, I. N. K., & Sudiartana, I. M. (2021). The Influence of Macroeconomic Indicators on Profitability: A Case Study of Regional Development Banks in Indonesia. Journal of Asian Finance, Economics and Business, 8(6), 79–87. https://doi.org/10.13106/jafeb.2021.vol8.no6.0079
Rahmayati, R., Mujiatun, S., & Sari, M. (2022). Islamic Green Banking At Bank Pembangunan Daerah In Indonesia. Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 5(1), 74–93. https://doi.org/10.31538/iijse.v5i1.1850
Ririn R., & Ries W. (2022). Assessing the Islamic Bank Financing During Economic Recession: The Role of Stimulus Regulation POJK Number 11/POJK.03/2020. Al-Muzara’Ah, 11(Special Issue), 57–75. https://doi.org/10.29244/jam.specialissue2022.57-75
Rosmanidar, E., Hadi, A. A. Al, & Ahsan, M. (2021). Islamic Banking Performance Measurement: a Conceptual Review of Two Decades. International Journal of Islamic Banking and Finance Research, 5(1), 16–33. https://doi.org/10.46281/ijibfr.v5i1.1056
Rusydiana, A. S. (2021). Bibliometric analysis of journals, authors, and topics related to COVID-19 and Islamic finance listed in the Dimensions database by Biblioshiny. Science Editing, 8(1), 72–78. https://doi.org/10.6087/kcse.232
Rusydiana, A. S., & Hasib, F. F. (2019). Islamic Banking Selection Criteria: Case in Indonesia Using Analytic Network Process. Economica: Jurnal Ekonomi Islam, 10(1), 165–188. https://doi.org/10.21580/economica.2019.10.1.2846
Saaty, T. L., & Vargas, L. G. (2006). Decision Making With The Analityc Network Process Economic, Political, Social and Technological Applications with Benefits, Opportunities, Costs and Risks. Pittsburgh, PA, USA: INFORMS.
Sadallah, M., Abdul-Jabbar, H., & Aziz, S. A. (2022). Promoting zakat compliance among business owners in Algeria: the mediation effect of compliance intention. Journal of Islamic Marketing, 13(12), 2521–254. https://doi.org/10.1108/JIMA11-2021-0366
Said, S. (2015). Sharia Banking Performance in Makassar. AlUlum, 15(1), 1-21. https://doi.org/10.30603/au.v15i1.215
Sarker, M. N. I., Khatun, M. N., & Alam, G. M. (2019). Islamic banking and finance: potential approach for economic sustainability in China. Journal of Islamic Marketing, 11(6), 1725–1741. https://doi.org/10.1108/JIMA-04-2019-0076
Sarker, N. I., & Rashid, H. O. (2015). An Impact of Banking Activities of Private Commercial Islamic Bank to Economic Development in Bangladesh: A Case Study on First Security Islami Bank Limited (FSIBL). Journal of Investment and Management, 4(5), 264-272, 264. https://doi.org/10.11648/j.jim.20150405.28
Suwito, S., & Siskawati, E. (2022). Sharia business resilience during the covid-19 pandemic : A case study of Indonesian sharia banking business. Economics, Business, Accounting & Society Review, 1(2), 68-75. https://doi.org/10.55980/ebasr.v1i2.22
Syaputra, R., & Abidin, Z. (2022). Performance Analysis Of Regional Development Efficiency Banks In Indonesia Using Data Envelopment Analysis (DEA) Approach. American International Journal of Business Management (AIJBM), 5(01), 134–140.
Tasnim, S. (2021). Performance of Investment Management: a Study on Social Islami Bank Limited (Sibl). International Journal of Islamic Banking and Finance Research, 5(1), 42– 59. https://doi.org/10.46281/ijibfr.v5i1.1260
Trisnaningtyas, J. (2022). The Impurity of Shariah Banking. Journal of Sharia Economics, 18(3), 1–12. https://journal.arraniry.ac.id/index.php/JoSE/article/view/1453
Zulkhibri, M. (2018). The impact of monetary policy on Islamic bank financing: bank-level evidence from Malaysia. Journal of Economics, Finance and Administrative Science, 23(46), 306– 322. https://doi.org/10.1108/JEFAS-01-2018-0011
