Role of Islamic Finance in Achieving Sustainable Development Goals

Sadiq, Ramla; Mushtaq, Afia

doi:10.32350/jitc.51.04

Cited by 17 publications

(13 citation statements)

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“…For model II, a 10% change in external assets to total assets, liquid assets to total assets and credit to private sector will positively improve SDGs funding by 24.12%, 9.63% and 0.31%, respectively. This result is in line with Bordon and Schmitz (2015), Sadiq and Mushtaq (2015) and Pisano et al (2012) that banking stability is a key factor that can drive sustainable development funding in an economy.…”

Section: Discussionsupporting

confidence: 89%

“…Besides, banking stability is mostly considered a continuum, especially in terms of being consistent with multiple combinations of the fundamental elements of finance (Novotny-Farkas, 2016). Globally, the investment required to attain the SDGs are huge, with the majority of the emerging economies, specifically because of their poor infrastructural development, thereby, making the scale of existing financial flows insufficient (Pisano et al, 2012;Sadiq & Mushtaq, 2015). The only channel for closing the resulting funding gap for the attainment of SDGs' objectives is via a sustained stability in the banking system, which will be able to provide and stand the pressure of finance requirements (Stenberg et al, 2017;Weber, 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

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Banking system stability: A prerequisite for financing the Sustainable Development Goals in Nigeria

Amadi

Adetiloye

Babajide

et al. 2021

Banks and Bank Systems

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The banking system, which has been the fulcrum of funding for Nigeria’s economy, is plagued by instability in the face of a growing amount of non-performing loans. This is examined in the current milieu of the need for funding the Sustainable Development Goals (SDGs). Using a number of proxies for SDGs 8 and 9, annual time series data covering 1992 to 2019 were used with variables such as GDP per capita, commercial banks’ loans to small-scale enterprises, banking system stability indicators and liquid assets to total assets of banks. The study utilized the Autoregressive Distributed Lag. Findings showed that banking system stability has a significant positive effect on funding the SDGs 8 and 9 beyond the five per cent level of significance within the study period. Non-performing loans remained negative throughout the study. The result suggests that banking stability would enhance funding of the SDGs, and banks would be stable if they finance the SDGs. The policy implication explains the importance of banks actively pursuing opportunities to build sustainable enterprises and developing strategies that will enable their core banking business to be more venture-driven rather than consumer-oriented. In conclusion, there is a need to completely eliminate or reduce the quantum of non-performing loans from the system and establish a regulatory framework that will facilitate its expected role of intermediation in the economy profitably and successfully. AcknowledgmentThe authors would like to appreciate Covenant University for financial support to publish this paper.

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Section: Discussionsupporting

confidence: 89%

Section: Literature Reviewmentioning

confidence: 99%

Banking system stability: A prerequisite for financing the Sustainable Development Goals in Nigeria

Amadi

Adetiloye

Babajide

et al. 2021

Banks and Bank Systems

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“…IFIs have to play a key role in developing VBB and reporting by making a community-based investment, developing VBIB products that will meet customers' business needs with social values and religious beliefs. These products and investments will allow people to improve standards of living, assist in the development of a community, social services such as the development of human resources, safety of environments, elevation of human rights, assist them to develop small businesses and create jobs and positive contribution in community development programs (Hassan and Dridi, 2011;Sadiq and Mushtaq, 2015;Zaher and Kabir Hassan, 2003;Wajdi Dusuki and Irwani Abdullah, 2007;El-Ghattis, 2011).…”

Section: Islamic Banking and Reporting In Bahrainmentioning

confidence: 99%

Value- based Islamic banking and reporting in Bahrain

Mohammed

Mansor

2021

IJOES

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Purpose This paper aims to analyse whether the practices of Islamic banks in Bahrain are in line with value-based Islamic banking (VBIB) and reporting disclosure in the annual reports towards achieving their fundamental objectives of human-centred economic development and social justice. Design/methodology/approach Based on Islamic finance, Islamic economic principles and perception of Maqasid al-Shari’ah, this paper examines and assesses the current practices of Islamic financial institutions (IFIs) in Bahrain through content analysis of financial and annual reports of Islamic banks in Bahrain and interviews of Islamic banking experts. Findings The findings reveal that value-based banking (VBB) has not been translated fully into practice by the Islamic banks in Bahrain. Research limitations/implications The data analysis was restricted to Islamic banks in Bahrain. Practical implications This paper identifies the need for reporting standard development to improve the VBB practice in Bahrain in the future. Looking at the objectives of the IFIs, this paper introduces the concept of VBB in Bahrain, which includes ethical banking, responsible banking and social responsibility. The study adds value not only to the current Islamic finance literature but also helps many stakeholders, including prospective academics, who may conduct comparative studies in different jurisdictions throughout the world. Originality/value The specific contribution of this paper is the identification of the VBB practices and related disclosure in the Islamic banking industry in Bahrain. The study is useful to harmonise and standardise the practices of VBIB by the contemporary Islamic banks in Bahrain.

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“…Along with BPK's efforts to become a foresight auditor, at the current level of insight and oversight BPK can also encourage the achievement of SDGs through environmental audits or environmental perspectives audits. Sustainable development is a concept that combines the needs of the present without reducing the ability of future generations to be able to meet their own needs which in essence lies in economic growth, social inclusion, and environmental protection (Sadiq & Mushtaq, 2015). Sustainable development is often concerned with emphasizing the longterm outlook and linking the natural, social, and economic aspects.…”

Section: Analysis Of Bpk's Authority To Conduct Foresight Auditmentioning

confidence: 99%

Analysis of BPK Legal Basis for Foresight Auditors for the Accelerated Achievement of the Sustainable Development Goals

Putra

2020

JTAKEN

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Law Number 15 of 2004 and Law Number 15 of 2006 only lay down the authority of the BPK in conducting audits in general and the types of audits that can be conducted by BPK. These regulations, however, do not specifically and explicitly provide the authority to the conduct of a foresight audit. Foresight audit launched by BPK in the 2016-2020 BPK Strategic Plan will be very important in the achievement of sustainable development goals (SDGs) by 2030, given that the BPK will provide feedback and suggestions on important future policies to accelerate the achievement of SDGs. Legal instruments have an important role for BPK as the legal basis for the institution in achieving the Highest Maturity Model of the Accountability Organization in conducting a foresight audit. This study employs a normative legal research method that aims to explore and study regulations that support BPK as a foresight auditor in the future. The results illustrate that the legal basis or legal instruments for the exercise of BPK’s foresight audit authority is sufficient but still needs to be improved. The addition of legal instruments and authorities can be a solution to ensure that any foresight audit performed in the future can run optimally and accelerate the achievement of the SDGs.

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Role of Islamic Finance in Achieving Sustainable Development Goals

Cited by 17 publications

References 0 publications

Banking system stability: A prerequisite for financing the Sustainable Development Goals in Nigeria

Banking system stability: A prerequisite for financing the Sustainable Development Goals in Nigeria

Value- based Islamic banking and reporting in Bahrain

Analysis of BPK Legal Basis for Foresight Auditors for the Accelerated Achievement of the Sustainable Development Goals

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