Assessing the financial sustainability of micro waqf banks: insights from Indonesia
This research comprehensively evaluates the financial sustainability of micro waqf banks (MWB) in Indonesia. This novel financial initiative engages MWB Management and regulatory bodies, most notably the Indonesian Waqf Board, in overseeing their operations. The pioneering MWB model in Indonesia ent...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2025-12-01
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| Series: | Cogent Social Sciences |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23311886.2025.2488117 |
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| author | Wuryan Andayani Eko Ganis Sukoharsono Mas Nur Mukmin Azreen Hamiza Binti Abdul Aziz |
| author_facet | Wuryan Andayani Eko Ganis Sukoharsono Mas Nur Mukmin Azreen Hamiza Binti Abdul Aziz |
| author_sort | Wuryan Andayani |
| collection | DOAJ |
| description | This research comprehensively evaluates the financial sustainability of micro waqf banks (MWB) in Indonesia. This novel financial initiative engages MWB Management and regulatory bodies, most notably the Indonesian Waqf Board, in overseeing their operations. The pioneering MWB model in Indonesia entrusts Islamic Boarding Schools as the Management Body for these institutions. The qualitative research method, employing a grounded theory approach, yields a detailed and context-specific portrayal of the financial sustainability of MWB, grounded in real-life experiences and relevant facts. The three steps in this process are intuiting, analyzing, and describing. In-depth interviews were conducted with fiqh experts, regulators, academics, and practitioners. The result indicate that understanding MWB’s financial sustainability can be seen viewed through the concept of financial sustainability, which is contingent upon its long-term operational stability, effective risk management, and the balance of its social mission and financial health. MWB has managed its financing risk through group financing and responsibility. Meanwhile, MWB faces the upcoming challenge of maintaining long-term operational stability due to capital erosion. Utilizing technology can reduce operational costs and encourage financial sustainability. The current success of MWB is the result of collective efforts between the government and local communities, especially Islamic boarding schools, and the government. |
| format | Article |
| id | doaj-art-6a976febfa084a6ab7ce7cd67b87861c |
| institution | OA Journals |
| issn | 2331-1886 |
| language | English |
| publishDate | 2025-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Social Sciences |
| spelling | doaj-art-6a976febfa084a6ab7ce7cd67b87861c2025-08-20T02:38:18ZengTaylor & Francis GroupCogent Social Sciences2331-18862025-12-0111110.1080/23311886.2025.2488117Assessing the financial sustainability of micro waqf banks: insights from IndonesiaWuryan Andayani0Eko Ganis Sukoharsono1Mas Nur Mukmin2Azreen Hamiza Binti Abdul Aziz3Department of Accounting, Brawijaya University, Malang, IndonesiaDepartment of Accounting, Brawijaya University, Malang, IndonesiaDepartment of Accounting, Brawijaya University, Malang, IndonesiaISDEV, Universiti Sains Malaysia, Minden Heights, MalaysiaThis research comprehensively evaluates the financial sustainability of micro waqf banks (MWB) in Indonesia. This novel financial initiative engages MWB Management and regulatory bodies, most notably the Indonesian Waqf Board, in overseeing their operations. The pioneering MWB model in Indonesia entrusts Islamic Boarding Schools as the Management Body for these institutions. The qualitative research method, employing a grounded theory approach, yields a detailed and context-specific portrayal of the financial sustainability of MWB, grounded in real-life experiences and relevant facts. The three steps in this process are intuiting, analyzing, and describing. In-depth interviews were conducted with fiqh experts, regulators, academics, and practitioners. The result indicate that understanding MWB’s financial sustainability can be seen viewed through the concept of financial sustainability, which is contingent upon its long-term operational stability, effective risk management, and the balance of its social mission and financial health. MWB has managed its financing risk through group financing and responsibility. Meanwhile, MWB faces the upcoming challenge of maintaining long-term operational stability due to capital erosion. Utilizing technology can reduce operational costs and encourage financial sustainability. The current success of MWB is the result of collective efforts between the government and local communities, especially Islamic boarding schools, and the government.https://www.tandfonline.com/doi/10.1080/23311886.2025.2488117Financial sustainabilityMicro Financial Institutionmicro waqf banksMicroeconomicsBankingEntrepreneurship and Small Business Management |
| spellingShingle | Wuryan Andayani Eko Ganis Sukoharsono Mas Nur Mukmin Azreen Hamiza Binti Abdul Aziz Assessing the financial sustainability of micro waqf banks: insights from Indonesia Cogent Social Sciences Financial sustainability Micro Financial Institution micro waqf banks Microeconomics Banking Entrepreneurship and Small Business Management |
| title | Assessing the financial sustainability of micro waqf banks: insights from Indonesia |
| title_full | Assessing the financial sustainability of micro waqf banks: insights from Indonesia |
| title_fullStr | Assessing the financial sustainability of micro waqf banks: insights from Indonesia |
| title_full_unstemmed | Assessing the financial sustainability of micro waqf banks: insights from Indonesia |
| title_short | Assessing the financial sustainability of micro waqf banks: insights from Indonesia |
| title_sort | assessing the financial sustainability of micro waqf banks insights from indonesia |
| topic | Financial sustainability Micro Financial Institution micro waqf banks Microeconomics Banking Entrepreneurship and Small Business Management |
| url | https://www.tandfonline.com/doi/10.1080/23311886.2025.2488117 |
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