The Influence of Benevolence Funds and Zakat Funds on the Reputation of Islamic Commercial Banks for the 2016-2020 Period

Abstract

The birth of The Law of the Republic of Indonesia No. 21 of 2008 concerning Sharia Banking as the legal basis for the operation of Islamic banks has increasingly linked Islamic banks to pay attention to aspects of their sharia. The regulation requires Islamic banks to avoid some non-halal sources of income. However, it is undeniable that currently Islamic banks are still in relationship with conventional banks so that there is still non-halal income in them which is one of the components in the benevolence fund.On the other hand, Islamic banks are also intermediation institutions that carry out social functions in the form of baitul maal, namely receiving funds in the form of infaq, alms, hibab and other social funds and distributing them to zakat management organizations. It is clear that benevolence funds and zakat funds must be included in the financial statements on the basis of accountability so that stakeholders can trust and maintain the reputation of the Islamic bank itself. The existence of this phenomenon, the author will discuss how the influence of benevolence funds and zakat funds on the reputation of Islamic banks for the 2016-2020 period. The research method used is quantitative research by taking secondary data from the report on the benevolence fund and semester zakat fund of the Islamic bank concerned. The results of the study revealed that simultaneously benevolent funds and zakat funds have a positive and significant effect on the reputation of Islamic banks.