scholarly journals Sharī’ah Audit and Supervision in Sharī’ah Governance Framework: Exploratory Study of Islamic Banks in Pakistan

2017 ◽  
Vol 9 (1) ◽  
pp. 103-118 ◽  
Author(s):  
Muhammad Asghar Shahzad ◽  
Syed Kahif Saeed ◽  
Asim Ehsan
Keyword(s):  
Exploratory Study ◽  
Islamic Banks ◽  
Governance Framework

Islamic Banking in Malaysia†

2012 ◽  
Vol 40 (1-2) ◽  
pp. 191-201 ◽  
Author(s):  
Sherin Kunhibava
Keyword(s):  
Central Bank ◽  
Islamic Law ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Average Growth ◽  
Governance Framework ◽  
Finance Industry ◽  
Asset Growth ◽  
The 1960S ◽  
Shariah Governance

AbstractIslamic banking is the conduct of banking according to Shariah or Islamic law. Statistically Islamic banking has had phenomenal growth, according to the Asian Banker Research Group, the world's 100 largest Islamic banks have set an annual asset growth rate of 26.7% and the global Islamic finance industry is experiencing an average growth of 15-20% annually1. Recently the Prime Minister of Malaysia commented that Malaysia has been maintaining its leadership in Islamic banking and finance for over three decades2. As an International leader in Islamic banking, it would be interesting to explore the development of Islamic banking in Malaysia. This will be the objective of this paper. This paper will focus on the historical development of Islamic banking in Malaysia, from the creation of the Haj Pilgrim's Fund Board in the 1960s to the current Islamic banking scene of 17 local Islamic banks and five International Islamic banks in operation. This paper will also explore the unique regulatory and governance framework of Islamic banking in Malaysia, by touching on the Islamic banking Act 1983, the Central Bank of Malaysia Act 2009, the Banking and Financial Institutions Act 1989 and the Shariah Governance Framework introduced in 2011 by the Central Bank of Malaysia. This paper will also briefly introduce how Islamic banking works.

scholarly journals CSR Contribution to Socio-Economic Development: Evidence from Indonesian Islamic Banks

2020 ◽  
Vol 3 (1) ◽  
pp. 13
Author(s):  
Aishath Muneeza ◽  
Aminudin Ma'ruf ◽  
Shahbaz Alam
Keyword(s):  
Economic Development ◽  
Social Responsibility ◽  
Commercial Banks ◽  
Exploratory Study ◽  
Annual Reports ◽  
Islamic Finance ◽  
Environmental Responsibility ◽  
Islamic Banks ◽  
Socio Economic Development ◽  
Corporate Social

Islamic banks play a significant role in social and environmental responsibility. It is known that Islamic finance is not merely profit-oriented but also looking at the prosperity of the society, as an ethical financial system Islamic finance give a massive contribution towards social responsibility. This exploratory study examines the relations between corporate social responsibility (CSR) practices of Indonesian Islamic banks and socio-economic development. The evidence presented is based on the published annual reports of 13 Islamic commercial banks in 2017. The findings of this research suggests that CSR is a priority of Indonesian Islamic banks and has correlation to the socio-economic development. Furthermore, the findings suggest that the robust guiding principles on CSR need to be developed and it has potential of Islamic banks credibility and profitability.

An Exploratory Study of Car Ijarah Practices in Islamic Banks of Pakistan

2018 ◽  
Vol 2 (1) ◽  
pp. 39-49
Author(s):  
Farah Yasser ◽  
◽  
Muhammad Azeem Naz ◽  
Zunera Khalid
Keyword(s):  
Exploratory Study ◽  
Islamic Banks

scholarly journals Analisis Pengungkapan Nilai Islam Dalam Laporan Tahunan Bank Syariah di Indonesia

2019 ◽  
Vol 1 (1) ◽  
pp. 5-28
Author(s):  
Muhammad Praditya Mas’ud
Keyword(s):  
Exploratory Study ◽  
Annual Report ◽  
Analytical Tool ◽  
Annual Reports ◽  
Islamic Banks ◽  
Research Theme ◽  
Islamic Values

This research is an exploratory study aimed to assess the degree of suitability of thedisclosure information of Islamic values in the annual report of Islamic Banks (BUS)with items that duly disclosed. This research using 2010 BUS annual report. In order tomake this result of this research can be compared with other similar researches, instruction encoding, which items should be disclosed or items that duly disclosed, adaptedfrom two previous studies which have similarity with this research theme, Haniffa &Hudaib (2004) and Prasetyaningsih & Prakosa (2010). This study uses content analysisas an analytical tool, which makes a set of related-specific text into analysis unit. Theresults showed that some of the new BUS emerged in 2010 have not been optimallydisclose Islamic values in their annual reports. But according to the overall score, all ofBUS annual report have disclosed enough information about Islamic values that shouldbe disclosed in annual reports.

scholarly journals WHY DOES BANGLADESH REQUIRE A CENTRALIZED SHARIAH GOVERNANCE FRAMEWORK FOR ISLAMIC BANKS?

2022 ◽  
Vol 7 (1) ◽  
pp. 24-42
Author(s):  
Md. Kausar Alam ◽  
Oli Ahad Thakur
Keyword(s):  
Central Bank ◽  
Banking Industry ◽  
Monitoring Systems ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Governance Framework ◽  
Governance Practices ◽  
Supervisory Boards ◽  
Shariah Governance ◽  
Regulatory Challenges

The main objective of this article is to describe the logical reasons why a Centralized Shariah Governance Framework (CSGF) provided by the Central Bank of Bangladesh (Bangladesh Bank) is essential for the country’s Islamic banks. In doing so, it identifies the major regulatory challenges (self-developed and disparate use of Shariah Governance (SG) practices) faced by Islamic banks in Bangladesh. It considers an analytical approach to explore the significance of a CSGF for Islamic banks in Bangladesh and examines the current diversified procedures of SG practices. This article reveals that the self-developed SG practices of Islamic banks in Bangladesh have created confusion and pessimism among the practitioners, bankers and even to the general people and regulators which is negatively affecting the overall image of Islamic banks. Such incongruent governance practices have led to inconsistencies in SG structures, implementation procedures, monitoring activities. In addition, this article reveals that these deficiencies usually exist due to weak monitoring systems of the Central Bank, ineffective functioning of individual Shariah Supervisory Boards (SSB) and the absence of comprehensive SGF. The article argues that the Central Bank of Bangladesh should initiate to reform its Islamic banking industry by introducing a CSGF aimed to identify the roles, responsibilities, powers, and functions of SSB; thereby improving governance, accountability, and overall Shariah compliance quality. This article is hoped to be beneficial for the regulators and practitioners to consider revising current practices.   Keywords: Centralization, Bangladesh Bank, Islamic banks, Shariah governance framework.   Cite as: Alam, M. K., & Thakur, O. A. (2022). Why does Bangladesh require a centralized Shariah governance framework for Islamic banks?  Journal of Nusantara Studies, 7(1), 24-42. http://dx.doi.org/10.24200/jonus.vol7iss1pp24-42

scholarly journals Legal and Corporate Governance Framework for Islamic Banks in Pakistan

2018 ◽  
Vol 05 (01) ◽  
pp. 24-37
Author(s):  
Mohammad Ayaz ◽  
◽  
Hassan Shakeel Shah ◽  
Jibrail Bin Yusuf ◽  
◽  
...  
Keyword(s):  
Corporate Governance ◽  
Islamic Banks ◽  
Governance Framework

scholarly journals Shar¯ı‘ah Governance Framework and Perception of Islamic Banking in Pakistan

2021 ◽  
Vol 11 (01) ◽  
pp. 75-89
Author(s):  
Kazi Afaq Ahmed ◽  
◽  
Masood Hassan ◽  
Imam Uddin ◽  
◽  
...  
Keyword(s):  
Sample Size ◽  
Public Perception ◽  
Good Governance ◽  
Practical Implication ◽  
Banking System ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Governance System ◽  
Governance Framework ◽  
Study Results

Purpose: Globally commercialized Islamic Banks were launched in 1970s at Middle East, Africa while in year 2002 at Pakistan. As of 2019, there were 5 full-fledge Islamic Banks operating in Pakistan and nearly all conventional banks have Islamic windows. Islamic Banks captured more than 15.5% share of the total Pakistan’s banking market and have far greater potential and capacity to take major share in the market. Methodology: Researchers have examined State Bank of Pakistan’s Shar¯ı‘ah Governance Framework and compared it with the Shar¯ı‘ah governance framework of Malaysia, in light of IFSB guidelines. Based on key findings, focused group interviews of Shar¯ı‘ah scholars were carried out to get their perception about the Shar¯ı‘ah compliance and effectiveness of Shar¯ı‘ah Governance Framework in Pakistan. Findings: The study focused on 5 key components of a good governance system, independence of Shar¯ı‘ah board, competence, confidentiality, consistency and disclosure requirement. The study revealed that Pakistan’s Shar¯ı‘ah governance system is compliant with IFSB guidelines and comparable with Malaysian model. Significance: This study is a unique study in the context of Pakistan. The finding of this research study will provide a comprehensive over view of the Shar¯ı‘ah Governance Framework (SGF) and perception of the Shar¯ı‘ah Scholars on SGF. The study findings may be useful for Islamic banks and other institutions using Islamic mode of financing. Limitations: The study was conducted on a limited sample size mainly from Karachi however the study may be replicated on a bigger sample size and including other cities while the number of conducted interviews can be increased if we go for pan Pakistan as they were only 15 dues to limitation of city as Karachi. Practical Implication: The Shar¯ı‘ah scholars have positive opinion and shown satisfaction on Shar¯ı‘ah governance system and effectiveness of Shar¯ı‘ah controls.The study results can be used to improve public perception about Shar¯ı‘ah compliance of Islamic banking system in Pakistan.

scholarly journals Analisis Pengukuran Sharia Compliance dalam Pelaksanaan Good Corporate Governance Bank Syariah di Indonesia

2019 ◽  
Vol 2 (2) ◽  
pp. 107-126 ◽  
Author(s):  
Dedhi Ana Mey Saramawati ◽  
Ahmad Tarmizi Lubis
Keyword(s):  
Corporate Governance ◽  
Content Analysis ◽  
Exploratory Study ◽  
Supervisory Board ◽  
Financial Statement ◽  
Reporting Standards ◽  
Islamic Banks ◽  
Unit Of Analysis ◽  
Analysis Methodology ◽  
Good Corporate Governance

This research is an exploratory study aimed to measure and assess sharia compliance inthe framework of implementation of Good Corporate Governance in Sharia BankingIndonesia based an indicators used. That the results of this study can be compared byresearch of other similar, used indicators is an indicator that has been adapted from twoearlier studies i.e Thea Vinnicombe (2010) with title “ AAOIFI Reporting Standards :Measuring Compliance” and Sepky Mardian (2011) “ Study Exploration of DisclosureApplication of Sharia Compliance in Islamic Banks”. This research using 4 (four) indicators are : (i) Sharia Supervisory Board, which is a key player in Sharia Banking, (ii) Murabaha, is one contract that dominates Sharia Banking assets, (iii) zakah, an appraiser social function of Sharia Banks, and (iv) Mudharaba, which is a profit loss sharing contract with the identity of Sharia Banks. This research uses content analysis methodology, namely to make the sets specific text as the unit of analysis to figure out the purpose of the disclosure to be assessed in accordance with sharia compliance. Theannual reports are used GCG Implementation report and Financial Statement period2011. The results of this research indicate that level of Sharia Compliance Sharia Banking in Indonesia has been quite adequate with a percentage exceeding 50%, and in general, the tenth of Sharia Banking has been disclosed sharia compliance in the implementation of GCG.

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