Harmonizing and constructing an integrated Maqasid al-Shariah index for measuring the performance of Islamic banks
Joint Authors
Nur al-Din, Kamaruzaman
al-Hudaifi, Fahmi Ali
Source
ISRA International Journal of Islamic Finance
Issue
Vol. 11, Issue 2 (31 Dec. 2019), pp.282-302, 21 p.
Publisher
International Shari'ah Research Academy for Islamic Finance
Publication Date
2019-12-31
Country of Publication
Malaysia
No. of Pages
21
Main Subjects
Topics
Abstract EN
Purpose – This paper aims to develop a performance measure for Islamic banks (IBs) by harmonizing related studies.
Furthermore, this work uses the developed yardstick to analyze the performance of a sample of 11 IBs from across different countries.
Design/methodology/approach – This paper uses the mix-mode method.
The qualitative approach is engaged first to construct the IBs performance yardstick.
Following this, the quantitative approach is applied through the use of the performance yardstick to measure the sample’s performance.
Findings – This study develops a maqa sid-based performance yardstick adapted from previous works.
The developed model in this study is called an integrated maqa sid al-Sharīʿah–based performance measure (IMSPM).
By using this performance measure, the present paper finds that the sample performed highest on the objective of nafs (self) over the three-year period.
In addition, this study identifies the information which best indicates the sample’s performance during the analysis.
Research limitations/implications – This paper uses the sample’s annual reports.
The analysis is thus limited to informational disclosure.
Practical implications – Islamic banking and financial institutions may use the IMSPM to communicate a measurable report on their promotion of the maqa sid al-Sharīʿah (objectives of Islamic law).
Social implications – The evidence from 11 IBs is indicative of their efforts to realize maq a sid al-Sharīʿah in the banking industry.
This point may best challenge the practice of stigmatizing IBs for not being in line with the Sharīʿah (Islamic law) or of imitating conventional banks.
Originality/value – The novelty of this study lies in two points.
First, this study harmonizes previous works to integrate financial and religious measures in a single yardstick.
Second, by using the developed standard, this study offers a fresh insight into the global IBs’ performance, represented by 11 IBs worldwide.
American Psychological Association (APA)
al-Hudaifi, Fahmi Ali& Nur al-Din, Kamaruzaman. 2019. Harmonizing and constructing an integrated Maqasid al-Shariah index for measuring the performance of Islamic banks. ISRA International Journal of Islamic Finance،Vol. 11, no. 2, pp.282-302.
https://search.emarefa.net/detail/BIM-965292
Modern Language Association (MLA)
al-Hudaifi, Fahmi Ali& Nur al-Din, Kamaruzaman. Harmonizing and constructing an integrated Maqasid al-Shariah index for measuring the performance of Islamic banks. ISRA International Journal of Islamic Finance Vol. 11, no. 2 (2019), pp.282-302.
https://search.emarefa.net/detail/BIM-965292
American Medical Association (AMA)
al-Hudaifi, Fahmi Ali& Nur al-Din, Kamaruzaman. Harmonizing and constructing an integrated Maqasid al-Shariah index for measuring the performance of Islamic banks. ISRA International Journal of Islamic Finance. 2019. Vol. 11, no. 2, pp.282-302.
https://search.emarefa.net/detail/BIM-965292
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references : p. 299-302
Record ID
BIM-965292