Capital Conversion Analysis in the Transition from Conventional to Islamic Banking: A Case Study in West Nusa Tenggara

This study examines the capital conversion process in the transformation of Bank NTB from a conventional bank to an Islamic bank, focusing on the regulatory, institutional, and operational aspects involved. Using a qualitative literature review method, this study explores the institutional restruct...

Full description

Saved in:
Bibliographic Details
Main Authors: Nurul Wathoni Fauzan, Andi Putradi
Format: Article
Language:English
Published: Institut Agama Islam Sultan Muhammad Syafiuddin Sambas 2025-07-01
Series:Shar-E: Jurnal Kajian Ekonomi Hukum Syariah
Subjects:
Online Access:https://journal.iaisambas.ac.id/index.php/Shar-e/article/view/3953
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1849318751550308352
author Nurul Wathoni Fauzan
Andi Putradi
author_facet Nurul Wathoni Fauzan
Andi Putradi
author_sort Nurul Wathoni Fauzan
collection DOAJ
description This study examines the capital conversion process in the transformation of Bank NTB from a conventional bank to an Islamic bank, focusing on the regulatory, institutional, and operational aspects involved. Using a qualitative literature review method, this study explores the institutional restructuring and financial implications of the conversion process. The results of the study indicate that despite a temporary decline in financial performance indicators during the transition period, Bank NTB Syariah managed to record an increase in asset growth, third-party funds (DPK), and financing in the following years. This study concludes that the success of the conversion is highly dependent on strategic planning, organizational synchronization, and the effective implementation of Islamic economic principles. This study contributes to the literature on institutional transformation in the Islamic banking sector in Indonesia.
format Article
id doaj-art-fd05a114e8494735a4f265411990cb72
institution Kabale University
issn 2442-5877
2686-1674
language English
publishDate 2025-07-01
publisher Institut Agama Islam Sultan Muhammad Syafiuddin Sambas
record_format Article
series Shar-E: Jurnal Kajian Ekonomi Hukum Syariah
spelling doaj-art-fd05a114e8494735a4f265411990cb722025-08-20T03:50:44ZengInstitut Agama Islam Sultan Muhammad Syafiuddin SambasShar-E: Jurnal Kajian Ekonomi Hukum Syariah2442-58772686-16742025-07-0111110.37567/shar-e.v11i1.3953Capital Conversion Analysis in the Transition from Conventional to Islamic Banking: A Case Study in West Nusa TenggaraNurul Wathoni Fauzan0Andi Putradi1Universitas Islam Negeri Sunan Kalijaga YogyakartaUniversitas Islam Negeri Sunan Kalijaga Yogyakarta This study examines the capital conversion process in the transformation of Bank NTB from a conventional bank to an Islamic bank, focusing on the regulatory, institutional, and operational aspects involved. Using a qualitative literature review method, this study explores the institutional restructuring and financial implications of the conversion process. The results of the study indicate that despite a temporary decline in financial performance indicators during the transition period, Bank NTB Syariah managed to record an increase in asset growth, third-party funds (DPK), and financing in the following years. This study concludes that the success of the conversion is highly dependent on strategic planning, organizational synchronization, and the effective implementation of Islamic economic principles. This study contributes to the literature on institutional transformation in the Islamic banking sector in Indonesia. https://journal.iaisambas.ac.id/index.php/Shar-e/article/view/3953bank conversionislamic bankingPrinciples of Islamic Economics
spellingShingle Nurul Wathoni Fauzan
Andi Putradi
Capital Conversion Analysis in the Transition from Conventional to Islamic Banking: A Case Study in West Nusa Tenggara
Shar-E: Jurnal Kajian Ekonomi Hukum Syariah
bank conversion
islamic banking
Principles of Islamic Economics
title Capital Conversion Analysis in the Transition from Conventional to Islamic Banking: A Case Study in West Nusa Tenggara
title_full Capital Conversion Analysis in the Transition from Conventional to Islamic Banking: A Case Study in West Nusa Tenggara
title_fullStr Capital Conversion Analysis in the Transition from Conventional to Islamic Banking: A Case Study in West Nusa Tenggara
title_full_unstemmed Capital Conversion Analysis in the Transition from Conventional to Islamic Banking: A Case Study in West Nusa Tenggara
title_short Capital Conversion Analysis in the Transition from Conventional to Islamic Banking: A Case Study in West Nusa Tenggara
title_sort capital conversion analysis in the transition from conventional to islamic banking a case study in west nusa tenggara
topic bank conversion
islamic banking
Principles of Islamic Economics
url https://journal.iaisambas.ac.id/index.php/Shar-e/article/view/3953
work_keys_str_mv AT nurulwathonifauzan capitalconversionanalysisinthetransitionfromconventionaltoislamicbankingacasestudyinwestnusatenggara
AT andiputradi capitalconversionanalysisinthetransitionfromconventionaltoislamicbankingacasestudyinwestnusatenggara