Controversies and Challenges of Islamic Banking: Analysis of Regulatory Reform

Muhammad, Tijjani; Mamman, Dani; Tangaza, Mujitaba Abubakar

doi:10.33094/26410265.2019.11.12.15

Cited by 5 publications

(6 citation statements)

References 3 publications

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“…The new element added to the theoretical model is the effect of the enhancement of Sharia Governance of Islamic Financial Institutions based on the performance of FRACE, ACE, SAB, and BOFIA. The study indicates a direct relationship between the FRACE, ACE, SAB, and BOFIA in promoting Sharia Governance (Muhammad, Mamman & Tangaza, 2019;Kehinde & Sharofiddin, 2021;Arslanian &Fischer, 2019;Alam et al, 2019. The study proved that FRACE, ACE, SAB, and BOFIA efforts could enhance prudential assessment of regulatory services and promote Sharia Governance and its role in strengthening the activities of bodies' performance and, to an extent, between institutional bodies and their performances.…”

Section: Discussionmentioning

confidence: 83%

“…The number of inquiries increased from individuals, banks, and other financial institutions wishing to offer Islamic commercials, financial products, and services in Nigeria (Said et al, 2021). The CBN, NDIC, and NAICOM have established the SG for regulating and supervising IFIs (Muhammad, Mamman & Tangaza, 2019). In 2010, CBN published NIFI Sharia Governance guidelines and subsequently published another guideline in 2011 for NIFI operations.…”

Section: Branding At Islamic Financial Institutions In Nigeriamentioning

confidence: 99%

“…Given the multi-dimensional nature of the industry, taking charge of reviewing new products and services is a severe task requiring not only Fiqh al-Mu'amalat knowledge but also traditional financial knowledge and skills. At the micro level, Islamic Financial Institutions should establish their ACE as part of their governance structure to ensure Sharia compliance in developing, operating, practising, and managing products and instruments subject to FRACE's supervisory powers (Muhammad, Mamman & Tangaza, 2019).…”

Section: Financial Regulatory Advisory Committee Of Expert and Govern...mentioning

confidence: 99%

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A Prudential Assessment of Islamic Banking System and Sharia Governance Related to the Banks and Other Financial Institutions Act (BOFIA) in Nigeria

Jibrin¹,

Ahmad²,

Yakasai³

2023

JIEBR

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A regulatory review of Islamic banking laws concept and practice in Nigeria under conventional banking regulatory laws need to be reviewed and investigated. Sharia Regulatory laws have provided sufficient laws and practices for Islamic Financial Institutions to be integrated into Nigeria's existing system of the non-interest bank and Islamic windows. In light of the above, establishing the Financial Regulation Advisory Council of Experts (FRACE), the Advisory Committee of Experts (ACE), the Sharia Advisory Board (SAB), and the Banks and Other Financial Institutions Act (BOFIA) to promote the Sharia Governance of Islamic Financial Institutions, businesses, and institutions in Nigeria. This employed cognate narrative and approach review to deduce and examine lacunae in the applicable laws and assess the scholarly perception of ethical financing in the Islamic Financial Institutions sector. The study employed Structural Equation Modeling (SEM). Consequently, the results revealed the positive relationship between the FRACE, ACE, SAB, and BOFIA in promoting regulatory and prudential assessment toward Sharia Governance of Islamic Financial Institutions in Nigeria. The application of laws and insufficient and inefficacious practice of its application generate an awkward practice of Islamic banking, and its windows in conventional banks and other Islamic financial Institutions are practically concerned and measured for Sharia suitability. Thus, establishment and regulatory laws will enhance Islamic Financial Institution practices and ensure equal treatment and great concern as conventional financial institutions in the country.

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Section: Discussionmentioning

confidence: 83%

Section: Branding At Islamic Financial Institutions In Nigeriamentioning

confidence: 99%

Section: Financial Regulatory Advisory Committee Of Expert and Govern...mentioning

confidence: 99%

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A Prudential Assessment of Islamic Banking System and Sharia Governance Related to the Banks and Other Financial Institutions Act (BOFIA) in Nigeria

Jibrin¹,

Ahmad²,

Yakasai³

2023

JIEBR

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“…Despite all the policies adopted by the policymakers to reduce high inflation in Nigeria and even though an effort has been devoted empirically to investigating the impact of inflation on the standard of living in Nigeria, the rate of inflation in the country is still high with the standard of living is decreasing continuously [6]. That is why this study fills the gap by reinvestigating inflation's impact on the standard of living in Nigeria from 1981 to 2021.…”

Section: Introductionmentioning

confidence: 97%

Analysis of Inflation and Standard of Living in Nigeria

2023

JOGRR

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Inflation is the persistent fall in the value of money for a given period, such that more money chases fewer goods and services, which influences the standard of living of people in Nigeria. This study investigates the impact of inflation on the standard of living in Nigeria for the period 1991 to 2021 using the Autoregressive Distributed Lag [ARDL] model. The empirical results showed a long-run and short-run relationship between GDPPC and the independent variables [CPI, INT & EXCH]. It indicated that past inflation was the important determinant that affected the people's standard of living in Nigeria. The result also discovered that Consumer Price Index [CPI] positively impacts Gross Domestic Product Per Capital in the short run [GDPPC]. In contrast, Interest Rate [INT] and Exchange Rate [EXCH] have a negative impact on Gross Domestic Product Per Capital [GDPPC] in the short run. The study recommended that government should improve and increase the production capacity in all sectors, encourage exportation in the country, and decrease the interest rate that will encourage investment in the country.

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“…However, the system and the activities fought by Islamic banks, such as interest rates, were also categorically fought by biblical content, such as Exodus 22:25, (Muhammad, Duku, et al, 2019). To avoid ambiguity, the CBN clarified that Islamic banking was not the only type of non-interest banking contemplated under the new banking model and therefore categorized non-interest banks as part of specialized institutions (Muhammad, Mamman, et al, 2019).…”

Section: Introductionmentioning

confidence: 99%

Islamic Banking: A Controversial Position of the Christian Association of Nigeria on Ethical Financial Services and Economic Sabotage

Muhammad¹,

Abubakar

Adam

2022

FITRAH

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The Central Bank of Nigeria approved the license of Non-interest financial institutions in the country in 2012. The approval has generated many issues and religious arguments everywhere in the country. Some supported the initiative to address poverty and financial exclusion, while others perceived Islamizing the financial sector. The study adopted a survey approach, while the questionnaires used and analyzed public perception, specifically in the Plateau State, Nigeria, using Structural Equation Modeling (SEM). The primary data survey questionnaire got 360 respondents. Some feel sensitive enough to oppose the system that is not imposed on any religious or ethical background, while others criticize the entire process of Islamic Banks in Nigeria. The study found that Islamic banks are established based on the fundamental Islamic teachings and originated from the Qur'an and the authentic Prophet Muhammad's teachings, which challenged some conventional financial institutions' practices that indicate a clear note of avoidance of such conventional facilities. Further, indicate that the Christian Association of Nigeria is sabotaging the momentum of Non-interest financial institutions through religious hate, and ignorance and sabotaging government policy to prevent the institutional contribution toward national development and economic growth in the country; using different approaches to frustrate the funding process of some government projects through Non-interest financial institutions. The paper recommends that regulatory bodies of financial institutions, specifically the Central Bank of Nigeria, should clear misunderstandings of the Christian Association of Nigeria towards national development, create awareness, and avoid discrimination in service delivery by pinpointing Islamic banking in the county.

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Controversies and Challenges of Islamic Banking: Analysis of Regulatory Reform

Cited by 5 publications

References 3 publications

A Prudential Assessment of Islamic Banking System and Sharia Governance Related to the Banks and Other Financial Institutions Act (BOFIA) in Nigeria

A Prudential Assessment of Islamic Banking System and Sharia Governance Related to the Banks and Other Financial Institutions Act (BOFIA) in Nigeria

Analysis of Inflation and Standard of Living in Nigeria

Islamic Banking: A Controversial Position of the Christian Association of Nigeria on Ethical Financial Services and Economic Sabotage

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