Korespondensi jurnal sinta 2 share journal: PHILANTHROPY OF ISLAMIC BANKING:A STRATEGY IN STRENGTHENING THE ECONOMIC GROWTH AND PROSPERITY

Islamic banking has philanthropy values presented in zakat and other virtue funds as it aims at enhancing economic growth and prosperity. These philanthropy instruments are one of the differences between Islamic banks and conventional banks. However, the role of zakat and other funds in enhancing people’s welfare needs to be analyzed since the market share of Islamic banks is still growing slowly. This paper is intended to analyze the influence of zakat and the other virtue funds towards the realization of social welfare. In specific, this paper also intends to find a strategy for strengthening welfare through the role of philanthropy of Islamic banks. This study utilizes a quantitative approach that is analyzed using the Spearman correlation test. The results of the paper are: first, zakat has no significant correlation on welfare; second, other virtue funds have a significant correlation with welfare. The strategy proposed is to empower zakat collection agencies funds and establish channeling that link to Islamic banks so that the productive zakat allocation can be managed by Islamic bank customers