The practices of Shariah governance systems of Islamic banks in Bangladesh

Alam, Md. Kausar; Rahman, Md. Mizanur; Islam, Fakir Tajul; Adedeji, Babatunji Samuel; Mannan, Md. Abdul; Sahabuddin, Mohammad

doi:10.1108/par-10-2020-0195

Cited by 7 publications

(4 citation statements)

References 38 publications

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“…Islamic banks in Bangladesh have particular BOD, SSB, management and Shariah executives. Islamic banks have internal Shariah manuals, fatwas , training center, Shariah audit system, monitoring system, the audit team and Shariah compliance system which are developed from a different understanding of the Shariah principles (Alam et al. , 2021d).…”

Section: Findings and Discussionmentioning

confidence: 99%

“…Despite the uniqueness of regularity policies and guidelines of Shariah in Bangladesh, the SG practices of Islamic banks are not the same (Alam et al. , 2021d).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Despite the uniqueness of regularity policies and guidelines of Shariah in Bangladesh, the SG practices of Islamic banks are not the same (Alam et al, 2021d). The policy and pressures come from the regulators, state, people, professionals, similar organizations, and cultures and they all contribute to better efficiency.…”

Section: Theoretical Underpinningmentioning

confidence: 99%

“…Islamic banks in Bangladesh have particular BOD, SSB, management and Shariah Diversified Shariah governance practices executives. Islamic banks have internal Shariah manuals, fatwas, training center, Shariah audit system, monitoring system, the audit team and Shariah compliance system which are developed from a different understanding of the Shariah principles (Alam et al, 2021d). Thus, it is supposed to have similar practices of SG, but it is dissimilar and diversified which contradicts the institutional theory perceptions.…”

Section: Self-developed Policiesmentioning

confidence: 99%

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One regulator: diversified Shariah governance practices, why?

Alam

Islam

et al. 2022

AJAR

Self Cite

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PurposeThe study aims to investigate the reasons behind the growing diverse practices of Shariah governance (SG) among Islamic banks in Bangladesh.Design/methodology/approachData has been collected through a semi-structured interview process from the concerned authorities (Shariah supervisory board members, Shariah department officers, central bank executives and banking professional experts) related to SG and Islamic banks in Bangladesh. The data has been analyzed by NVivo software.FindingsThe results of the study show that SG mechanisms are different due to the lack of unique comprehensive SG guidelines and the absence of a Centralized Shariah Supervisory Board (CSSB) under the Central Bank. The self-developed practices, the diversified opinions and viewpoints of the Board of Directors (BOD), banks' policies, business motivations and profit intention are also responsible for diversified SG practices. The diverse understandings and explanations of Shariah, Madhab (school of thought) and rulings are also responsible for the different practices of SG in Bangladesh.Research limitations/implicationsThe study has unique implications for the regulatory authorities and Islamic banks in Bangladesh. The study explored the diverse reasons for numerous applications of SG guidelines which will be beneficial for the central bank and regulators to resolve the issues by outlying unique SG guidelines.Originality/valueThis study outlines the reasons for dissimilar practices of SG by the Islamic banks in Bangladesh, which will be beneficial for Islamic banks and the central bank of Bangladesh.

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Section: Findings and Discussionmentioning

confidence: 99%

“…Despite the uniqueness of regularity policies and guidelines of Shariah in Bangladesh, the SG practices of Islamic banks are not the same (Alam et al. , 2021d).…”

Section: Literature Reviewmentioning

confidence: 99%

Section: Theoretical Underpinningmentioning

confidence: 99%

Section: Self-developed Policiesmentioning

confidence: 99%

See 2 more Smart Citations

One regulator: diversified Shariah governance practices, why?

Alam

Islam

et al. 2022

AJAR

Self Cite

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Framing external environmental dimensions as institutional constraints on adopting Islamic financial transactions: empirical evidence from: Libyan commercial banks

Bin Idrees,

Alhabshi,

Sharofiddin

et al. 2024

IJOES

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Purpose The purpose of this study is to frame the dimensions of the external institutional environment, namely, cultural-cognitive, normative and regulative dimensions as the main actors in the organisational field. More precisely, Libyan commercial banks have been identified as empirical evidence, to identify constraints of the institutional environment governing the behaviour and decision-making of commercial banks, when adopting Islamic financial transactions. Design/methodology/approach A questionnaire has been designed for 14 Libyan commercial banks which is distributed to the Board of Directors, managers, directors of departments, and personnel. The exploratory factor analysis (EFA) and the measurement model by using the first-order and second-order confirmatory factor analysis (CFA) have been applied as essential steps to embody the conceptual framework and test the research hypotheses. Findings The results of the EFA indicated sufficient correlation among the dimensions of the external environment. The CFA supported this study’s hypotheses. The modelling showed that the cultural-cognitive, normative and regulative dimensions are institutional constraints impeding Libyan commercial banks’ adoption of Islamic financial transactions. Interestingly, the findings of the CFA align with the EFA findings in supporting the conceptual framework of the research. They portrayed that the cultural-cognitive dimension has been identified by explicit and implicit cognition. Originality/value This study systematically embodies the dimensions of the external institutional environment, namely, cultural-cognitive, normative and regulative dimensions, as the main factors in the organisational field to be conceptually rich lenses to investigate social considerations to reinforce institutional thought broadly. The results of this study were consistent with extant Islamic financial literature, reflecting symmetry and similarity across commercial banks, particularly at the first stage of adopting Islamic financial transactions.

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Assessment of the Sharīʿah requirements in the Malaysian Islamic Financial Services Act 2013 from the managerialism and Maqāṣid al-Sharīʿah perspectives

Alam

Muda

2023

JIABR

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Purpose The Maqāṣid (objective) hierarchy is a triple-tiered conceptualisation of individual and social needs that is grounded in the five objectives of Sharīʿah (Islamic Law). Managerialism is the ideological representation of human interaction based on managerial doctrines and practices. This paper aims to explore the tension between the Maqāṣid hierarchy and managerialism by evaluating the Sharīʿah requirements in the Islamic Financial Services Act (IFSA) 2013 of Malaysia from the Maqāṣid al-Sharīʿah perspective. Design/methodology/approach This qualitative study uses an inductive approach to review the sources of Sharīʿah and classical literature of Islamic jurists to present Sharīʿah rulings on managerialism and Maqāṣid al-Sharīʿah. Findings The Maqāṣid hierarchy promotes a vision of human life that is the opposite of managerialism. In the case of IFSA 2013, the Maqāṣid hierarchy, which is supposed to be the bedrock for Islamic finance, is replaced by a managerial hierarchy closer to Maslow’s hierarchy than it is to Imam Shatibi’s concept of human life. A process of fitting the Maqāṣid hierarchy into a narrow managerial mould occurs in IFSA 2013, meaning that many of the unique aspects of the Maqāṣid al-Sharīʿah are lost. Social implications This study will assist Sharīʿah scholars, policymakers and Islamic financial institutions to develop the financial system and to implement the Maqāṣid al-Sharīʿah to improve macro policy and shaping Islamic institutions. Originality/value This is a pioneer study that develops a bridge between the Islamic Maqāṣid and conventional managerial hierarchies, which will encourage academics and practitioners to enrich the literature by conducting more in-depth studies on this topic.

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The practices of Shariah governance systems of Islamic banks in Bangladesh

Cited by 7 publications

References 38 publications

One regulator: diversified Shariah governance practices, why?

One regulator: diversified Shariah governance practices, why?

Framing external environmental dimensions as institutional constraints on adopting Islamic financial transactions: empirical evidence from: Libyan commercial banks

Assessment of the Sharīʿah requirements in the Malaysian Islamic Financial Services Act 2013 from the managerialism and Maqāṣid al-Sharīʿah perspectives

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