International Journal of Islamic Banking and Finance Research Centre for Research on Islamic Banking & Finance and Business en-US International Journal of Islamic Banking and Finance Research 2576-4136 Sharia Business Unit Spin-off: Strategic Development Model of Sharia Banking in Indonesia <p class="11-SciencePG-Abstract-content" style="line-height: normal;">Islamic bank in Indonesia in the last ten years shows a positive trend is quite impressive, the average asset growth of 30% is well above the average growth of conventional banks which only reached 15%. The other side, if the terms of its contribution to the national banking system is still very small, as indicated by the achievement of market share of Islamic banks until the end of December 2016 reached only 5.30% of the total national banking assets. Regarding to the objective conditions, would need the appropriate business development strategy to boost growth and expand market share, so that Islamic banks can increase their role in national economic activities. Spin-Off sharia business unit owned by a conventional bank is one of the business development strategy offered by the Banking Act. This paper aims to identify and measure the effectiveness of the implementation of the spin-off business unit into a sharia/Islamic banks (Sharia Commercial Bank-SCB) that have been carried out by some Islamic banks in Indonesia. The results show that the growth rate of SCB business activity is better than Sharia Business Unit (SBU), but in terms of profitability and efficiency level of SBU is better than SCB.</p> Iim Hilman ##submission.copyrightStatement## 2018-07-15 2018-07-15 2 2 1 15 Hindrance of Mudharabah Financing: A Study from Islamic Banking Industry of Pakistan <p>In spite of the momentous growth of Islamic banking, the equity-based financing, "Mudarabah"(trustee partnership), the most pioneer product of Islamic banking, is still in its infancy. It is evident from the literature that the implementation of Mudharabah based financing is very less compared to other modes of financing. Therefore, this study is conducted to investigate the hindrance factors of Mudarabah financing. After the literature review, qualitative research methods applied to study the effect of Moral Hazard, Operational Difficulties andRisk factors. The findings showed the inverse relation between Mudarabah growth and operational difficulties, signifying that as operational difficulties increased managers discouraging customers not to adopt Mudarabah financing as their first choice. Risk Factors and morals hazards also show the inverse relationship. Findings of the study have practical implications for financial institutions, practitioners, policy makers, and customers.&nbsp; </p> <p><em>&nbsp;</em></p> Tuqir Afzal Shazia Hassan ##submission.copyrightStatement## 2018-11-10 2018-11-10 2 2 16 23 Empirical Investigation of Islamic Banking Adoption in Brunei <p style="text-align: justify;">The main objective of this study is to explore the understanding level of various Islamic banking concepts and determine the factors that impact the adoption of Islamic banking services in Brunei. The impact of thelevel of understanding, relative advantage, compatibility, complexity, observability, uncertainty, and service quality was examined through Rogers (2003) Diffusion of Innovation. The study adopted quantitative approach; data were collected through a self-administrated questionnaire from 245 bank customers located in Brunei’s Muara district.The findings predicted that understanding level of various Islamic banking concepts was below average among Islamic bank customers. The multiple regression analysis predicted that understanding, relative advantage,compatibility, complexity, observability, uncertainty and service quality has apositive impact on theadoption of Islamic banking services.</p> Qaisar Ali Hakimah Binti Yaacob Dayang Hjh Norliza Binti Dato Haji Mahal ##submission.copyrightStatement## 2018-11-12 2018-11-12 2 2 24 38