The Practice of Shariah Governance in Islamic Banking and Finance: A Study of Islamic Banks in Bangladesh

Ahmed, Riazuddin; Mohamad, Mohamad Saifullah Bin

doi:10.18646/2056.64.19-020

Cited by 6 publications

(5 citation statements)

References 18 publications

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“…Table 4 shows that there was a significant difference in Shariah governance disclosure between local and foreign IBs. The requirements and guidelines of Shariah governance such as IFSA, SGF and GP8-i would encourage better quality and more disclosure among local IBs (Masruki et al 2018a;Ahmed & Mohamad 2019). As for foreign banks, they may have different views depending on their origin countries.…”

Section: Data Analysis and Resultsmentioning

confidence: 99%

Shariah Governance Practices of Malaysian Islamic Banks in the Light of Shariah Compliance

Masruki

Hanefah

Dhar

2020

AJAG

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Islamic banks in Malaysia must conform to Shariah rules in their operations. Islam's prohibition of usury is the main justification for the necessity of Islamic banks (IBs). Indeed, the implementation of Shariah governance through the Shariah Supervisory Board (SSB) is essential to monitor and govern the operations of IBs for ensuring the integrity, credibility and transparency of IBs. Failure to conform to good Shariah governance practices will result in the IBs' failure to uphold Shariah in their operations. The objective of this paper is to examine the Shariah governance practices of IBs in Malaysia. This study employs content analysis to identify the extent to which the Shariah governance is being practised by IBs. A disclosure checklist was developed based on a review of previous studies and regulations, namely the

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Section: Data Analysis and Resultsmentioning

confidence: 99%

Shariah Governance Practices of Malaysian Islamic Banks in the Light of Shariah Compliance

Masruki

Hanefah

Dhar

2020

AJAG

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“…The Sharia governance framework effectively ensures Sharia compliance in Islamic financial institutions (Hilmy & Hassan, 2019). Hilmy & Hassan (2019) and Ahmed & Mohamad (2019) explain that the Islamic governance framework usually consists of important key functions: accountability and responsibility, independence, competence, confidentiality and consistency, shariah compliance, research function, management and supervision, shariah advisory board, shariah compliance and review, and transparency and disclosure. The pillars of sharia governance are management and supervision, sharia advisory, Sharia compliance and review, and disclosure and transparency (Minhas, 2012).…”

Section: Sharia Governancementioning

confidence: 99%

“…DPS oversees Sharia internal compliance, risk, and internal audit to ensure the implementation of Islamic Sharia principles in Islamic banking (Minaryanti & Mihajat, 2023). Shariah governance practices in Islamic banking emphasize independence, accountability, and transparency, which are important to ensure good governance and compliance with Shariah principles (Ahmed & Mohamad, 2019). Therefore, the relationship between Islamic banking and Sharia governance is integral in maintaining Islamic financial institutions' ethical and legal compliance and ensuring financial health and stability.…”

Section: Introductionmentioning

confidence: 99%

Zillennial Perceptions of Sharia Governance Implementation and Its Implications on the Reputation, Trust, and Loyalty of Islamic Banks

Maysyaroh,

Rusydiana,

Febriani

2024

JESTT

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This study aims to analyze zillennial perceptions of the implementation of sharia governance and its implications for the reputation, trust and loyalty of Islamic banks. This research is quantitative research using primary data. The object of this research is zillennial customers of Bank Syariah Indonesia with a sample size of 107 respondents using purpose sampling technique. The analysis method used is Structural Equation Modeling-Partial Least Squares (SEM-PLS). The results found that the influence of sharia governance significantly and positively contributed to improving the reputation, trust and loyalty of Islamic banks. Then, the reputation of Islamic banks increases customer trust and customer trust increases customer loyalty to Islamic banks. Finally, customer trust increases customer loyalty to Islamic banks. Therefore, it is necessary for Islamic banks to be able to implement sharia governance properly, in order to increase the reputation, trust and loyalty of Islamic banks. Future research can explore more deeply related to the variables of this study, where further research can use or add other variables that are also related and use other more comprehensive analysis methods. Keywords: Sharia Governance, Reputation, Trust, Loyalty, Islamic Banks, Zillennials ABSTRAK Penelitian ini bertujuan untuk menganalisis persepsi zillenial terhadap implementasi syariah governance serta implikasinya terhadap reputasi, kepercayaan dan loyalitas bank syariah. Penelitian ini merupakan penelitian kuantitatif dengan menggunakan data primer. Metode analisis yang digunakan adalah Structural Equation Modeling-Partial Least Squares (SEM-PLS). Hasil penelitian menemukan bahwa pengaruh sharia governance secara signifikan dan positif berkontribusi dalam meningkatkan reputasi, kepercayaan dan loyalitas bank syariah. Kemudian, reputasi bank syariah meningkatkan kepercayaan nasabah dan kepercayaan nasabah meningkatkan loyalitas nasabah terhadap bank syariah. Terakhir, kepercayaan nasabah meningkatkan loyalitas nasabah terhadap bank syariah. Maka dari itu, perlu bagi pihak Bank Syariah untuk dapat mengimplementasikan sharia governance secara baik, guna meningkatkan reputasi, kepercayaam dan loyalitas bank syariah. Penelitian selanjutnya dapat mengeksplorasi lebih dalam terkait dengan variabel penelitian ini, dimana penelitian selanjutnya dapat menggunakan atau menambahkan variabel lain yang juga berhubungan serta menggunakan metode analisis lain yang lebih komprehensif. Kata Kunci: Sharia Governance, Reputasi, Kepercayaan, loyalitas, Bank Syariah, Zillenial

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“…ESA provides an additional layer of independent assurance to stakeholders of IFIs due to their position as an external party to the institution (Ahmed, 2017;UKIFC & ISRA, 2016;Islamic Finance Council & ISRA, 2012). Many of earlier research on ESA focused on IFIs covering Islamic banks and takaful operators.…”

Section: Introductionmentioning

confidence: 99%

“…There are challenges highlighted by countries that had adopted ESA for the IFIs. Ahmed (2017) raised the issue of availability of human resources as he had interviewed regulator and industry practitioner in Pakistan where they had taken the initiatives to train professional accountants and Shariah experts to equip them with necessary skills to conduct effective ESA. Further, in Pakistan ESA report will remain as off-limits to the public.…”

Section: Introductionmentioning

confidence: 99%

Viability of External Shariah Audit Practice:

Zakaria,

Shafii,

Salleh

et al. 2023

I-iECONS

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The current trend in Shariah governance and assurance has now gone beyond internal Shariah audit to external Shariah audit (ESA). At the international level, the move towards enhancing Shariah governance in Islamic financial institutions (IFIs) were made by mandating ESA function by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) in its auditing standards in year 2019. Then, in year 2023 Islamic Financial Services Board (IFSB) jointly collaborate with AAOIFI on issuing an exposure draft on Shariah governance framework which suggested as best practice for ESA to be conducted not just for IFIs but also for Islamic capital market. As there is increasing number of institutions offering Shariah compliant products and services, there is also the need for ESA to provide assurance in sectors beyond IFIs. Besides big audit firms, the supply of ESA can be offered by small and medium audit practitioners (SMPs) as well. A focus group discussion was held to study this issue with 17 SMPs on the viability to venture into the Shariah audit industry. The findings indicate challenges to SMPs as there is no regulatory requirement for the conduct of ESA in Malaysia; there is debate on the audit scope and a need for human capital development to develop required skillset for external Shariah auditors that includes knowledge in Shariah principles, Shariah compliant contracts, Shariah risk management and Islamic capital market related products and services.

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The Practice of Shariah Governance in Islamic Banking and Finance: A Study of Islamic Banks in Bangladesh

Cited by 6 publications

References 18 publications

Shariah Governance Practices of Malaysian Islamic Banks in the Light of Shariah Compliance

Shariah Governance Practices of Malaysian Islamic Banks in the Light of Shariah Compliance

Zillennial Perceptions of Sharia Governance Implementation and Its Implications on the Reputation, Trust, and Loyalty of Islamic Banks

Viability of External Shariah Audit Practice:

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