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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Main Authors: Wuryan Andayani, Eko Ganis Sukoharsono, Mas Nur Mukmin, Azreen Hamiza Binti Abdul Aziz
Format: Article
Language:English
Published: Taylor & Francis Group 2025-12-01
Series:Cogent Social Sciences
Subjects:
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.
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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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AT ekoganissukoharsono assessingthefinancialsustainabilityofmicrowaqfbanksinsightsfromindonesia
AT masnurmukmin assessingthefinancialsustainabilityofmicrowaqfbanksinsightsfromindonesia
AT azreenhamizabintiabdulaziz assessingthefinancialsustainabilityofmicrowaqfbanksinsightsfromindonesia