Shari'Ah Supervisory Board Characteristics Effects on Islamic Banks' Performance: Evidence from Malaysia

Nomran, Naji Mansour; Haron, Razali; Hassan, Rusni

doi:10.2139/ssrn.3598723

Cited by 49 publications

(158 citation statements)

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“…As mentioned above, SSB characteristics, for example, SSB size, crossmembership, doctoral qualification, reputation and expertise, may determine how effective the SSB is in performing its task [19,32,35]. Basically, SSBs' total effect should be measured using an SSB measurement that can reflect the total effect of SSB based on the most important characteristics that affect SSBs' performance [26].…”

Section: Shari'ah Supervision and Bank Performancementioning

confidence: 99%

“…This chapter uses an unbalanced panel data of 66 IBs over 18 countries over the period 2007-2015 after eliminating banks with insufficient data on Shari'ah governance and performance. We choose the sample's starting period of 2007 in order to 2 Several variables relating to the SSB characteristics may determine how effective the SSB is in conducting its task, namely, SSB size, doctoral qualification, reputation, cross-membership and expertise [29,19,[30][31][32].…”

Section: Samplementioning

confidence: 99%

“…In this study, the dependent variable, which is the performance of IBs, is measured by ROA and ROE following the previous studies [15,32].…”

Section: Measures Of Variablesmentioning

confidence: 99%

See 2 more Smart Citations

Relevance ofShari’ahGovernance in Driving Performance of Islamic Banks during the Financial Crisis: International Evidence

Nomran¹,

Haron²

2020

Banking and Finance

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This study aims to examine the impact of Shari'ah governance mechanism on the performance of Islamic banks (IBs) during the financial crisis of 2008. Data were collected from 66 IBs over 18 countries covering the period of 2007-2015 and analyzed using the System-GMM estimator. The findings indicate that an increase in SSB effectiveness increases IBs' performance even during the crisis periods. A possible justification for this positive effect is related to the SG structure of IBs that allows them to undertake higher risks to achieve a high efficiency level. For this, the IBs, policymakers and practitioners should consider these findings when aiming to improve SG practices in the Islamic banking industry, which in turn may help in protecting IBs during crisis and non-crisis periods. More specifically, they should give due importance to SSB (size, cross-membership, educational qualification, reputation and expertise) in enhancing the performance of IBs during the crisis and non-crisis periods. This study provides additional evidence on how IBs can sustain their performance during either crisis or non-crisis periods through adopting appropriate SG structure. However, the study only focuses on a small sample of 66 IBs due to lack of the data.

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Section: Shari'ah Supervision and Bank Performancementioning

confidence: 99%

Section: Samplementioning

confidence: 99%

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Relevance ofShari’ahGovernance in Driving Performance of Islamic Banks during the Financial Crisis: International Evidence

Nomran¹,

Haron²

2020

Banking and Finance

Self Cite

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“…Then, Islamic banks began to spread in some Arab countries such as Saudi Arabia, UAE, Sudan and Jordan (Roy, 1991). Since their appearance, Islamic banks have been characterized with a set of characteristics that affected their banking operations, such as being a non-interest banking (Nomran et al, 2018). In addition, as a new form of banks, Islamic banks have faced intense competition with conventional banks (Zopounidis et al, 2017).…”

Section: Introductionmentioning

confidence: 99%

The Implementation of Balanced Scorecard in Jordanian Islamic Banks

Qushtom¹

2020

IJFR

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Balanced Scorecard (BSC) has always played an effective role in improving entities' performance. Therefore, it was widely adopted in entities in developed and developing countries. As a relatively new form of banks in the banking sector, exploring the extent of implementation of the BSC perspectives in Islamic banks in developing countries, and its impact on their performance will shed the light on the weaknesses and strengths in the strategic planning systems in these banks. Accordingly, these banks could improve their strategic planning systems. To attain that, two integrated questionnaires were designed and distributed to 355 employees and clients in 3 Jordanian Islamic banks (JIBs). The results showed that the extent of implementation of the BSC perspectives in JIBs ranged between 55% - 93%. In addition, the results showed that there is a significance positive relationship between the BSC and the financial performance (ROA/ROE) of JIBs. Accordingly, the researcher recommended JIBs to increase their interest in implementing the BSC perspectives and to create an effective alignment between all perspectives of the BSC.

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“…The Malaysian government has adopted (proactive model) the most extreme intervention of regulators in the country (Haron & Hassan, 2016).in order to gain a reputation in the eyes of the world, to be a leader in knowledge transfer of Islamic banks (Lee & Nasaruddin, 2014). to reap profits, to replace usury and to strive for the nationalization of the country (Yusoff, 2013).…”

Section: Introductionmentioning

confidence: 99%

Islamic Banking Revolution in Malaysia: A Review

Husseini

Fam

Ahmat

et al. 2019

HSSR

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Purpose of the study: The study aims to review the development of Malaysian Islamic banks from year 2008 to 2015 and its role in financing Malaysian economy. Methodology: The sources of data were collectted from Malaysian banks, the reviews of the experience of Islamic banks in Malaysia has been discussed, then this study analysed the roles of Islamic banks in the allocation of resources in the banking system. finally, this study explined the overall development of performance in Islamic banks in Malaysia. Main Findings and Novelty: The results of this study show that the Malaysian Islamic banks have contributed on the structure of the Malaysian economy; particularly in supporting the SME (small and medium entrepreneurship) industries as well the large projects, which create a good positive impact on Malaysian economy and became one of the main financial sources of Malaysian investment. Applications of this study: Achieving the required requirements for the success of the desired Islamic financial system such as adherence to ethical controls and behavior would reduce the problematic ethical risks and the risks of information asymmetry and emphasis on the importance of participations in the banking system and the need to adopt them.

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Shari'Ah Supervisory Board Characteristics Effects on Islamic Banks' Performance: Evidence from Malaysia

Cited by 49 publications

References 0 publications

Relevance ofShari’ahGovernance in Driving Performance of Islamic Banks during the Financial Crisis: International Evidence

Relevance ofShari’ahGovernance in Driving Performance of Islamic Banks during the Financial Crisis: International Evidence

The Implementation of Balanced Scorecard in Jordanian Islamic Banks

Islamic Banking Revolution in Malaysia: A Review

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