Muhajirin, Al-Amin, Ririn Tri Ratnasari, Mohammad Lutfi, Loso Judijanto, Rahmat, Zuwardi, Sari Rizkia, Hadi Subeno, Elif Pardiansyah, Mohammad Alief Hidayatullah
A bank's reputation is a collective representation of the bank's image in the minds of the public or its stakeholders. Reputation reflects the public perception of a bank's actions; it can also be influenced by negative publicity about the bank. Reputation risk occurs because of other risks, such as credit, liquidity, and operational risks. This research utilizes quantitative secondary data from annual financial reports for the 2018-2023 period, obtained from the Bank Muamalat Sharia website. The data used in the study are documentary, specifically in annual reports published quarterly by Bank Muamalat Sharia from 2018 to 2023, and collected from the official website. This study was conducted at Bank Muamalat Sharia, examining the relationship between variables, including the influence of the distribution of Zakat funds (PDZ) and the use of benevolent funds (PDK) on the reputation of Bank Muamalat Sharia. The analysis was assisted by WarpPLS 7.0 software. Research Results reveal results. The distribution of Zakat funds has a negative and significant effect on Bank Muamalat's reputation, and the use of benevolent funds has a positive impact. Developing zakat and welfare funds is not just a moral imperative; it is a strategic move that can: Elevate transparency and ethical credibility, Drive financial performance and stakeholder trust, Align with maqashid sharia and bolster national and global Islamic finance standards, Differentiate Bank Muamalat as a trustworthy Islamic social intermediary. To solidify its identity as an ethical, socially driven Islamic bank, Muamalat must scale its welfare efforts and institutionalize transparency and inclusivity. Well-managed ZISWAF programs uplift communities and forge authentic trust and long-term social capital that will enrich the bank’s reputation well into the future. Research to date uncovers that while Bank Muamalat demonstrates some zakat infrastructure, the limitations in reporting transparency, narrow sample scopes, financial-centric measures, and internal-only perspectives obscure the actual reputational impact. Bank Muamalat is positioned to break new ground in Islamic banking by turning its existing Islamic value framing into structured zakat or welfare narratives in corporate reports. Pursuing societal-commitment metrics, building upon Malaysia’s benchmark success. Copyright (c) 2025 The Authors. This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Department of Islamic Economics, Faculty of Economics and Business, Universitas Islam Negeri Syarif Hidayatullah, Jakarta, Indonesia; Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia; Department of Economics and Business, Universitas Islam Negeri Bukittinggi, Bukittinggi, Indonesia; Universitas Islam Negeri Syarif Hidayatullah, Jakarta, Indonesia; IPOSS, Jakarta, Indonesia; Universitas Taman Siswa Padang, Indonesia; Ilmu Ekonomi dan Keuangan Islam, Universitas Pendidikan Indonesia, Indonesia; Universitas Sultan Ageng Tirtayasa, Indonesia; Universitas Nurul Jadid, Probolinggo, Indonesia
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