摘要：The competition of the banking industry requires Islamic bank to provide a great services to its customers. Service quality is one of the critical points for the banking industry. Good quality services will create customer satisfaction and encourage customer loyalty. The purpose of this research is to analyze the factors that affect customer satisfaction and loyalty of Islamic bank. This research uses the concept of Banking Service Quality (BSQ) which is consisting six dimensions: effectiveness and assurance, access, price, service portfolio, reliability, and tangible. BSQ concept is later developed into the Islamic Banking Service Quality by adding a dimension that is Sharia compliance. Thus forming seven dimensions in measuring customer satisfaction of Islamic banks. The research method using Structural Equation Modeling (SEM), respondents are customers of Bank Syariah xyz, sampling technique used is convenience sampling with 160 persons of sample size. The results showed that only four dimensions of price, service portfolio, reliabililty, and tangible has positive effect on customer satisfaction, and customer satisfaction has positive influence on customer loyalty. While the three other dimensions have no effect on customer satisfaction.
