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- W1555751505 abstract "Islamic banks' operations are guided by the principles and values laid down in Islam (i.e., theShari'ah). To ensure Shari'ah compliance on the operations of the bank and to inspire theconfidence of shareholders and stakeholders, each Islamic bank is required to establish aShari'ah board. This study empirically investigates the Shari'ah boards operating in theMalaysian Islamic banking industry and specifically examines the influence of the dual-layerShari'ah governance system on Malaysian Islamic banking practices where, besides theregulated Shari'ah board, Shari'ah supervision at the highest level is undertaken by theShari'ah Advisory Council (SAC) of the Central Bank of Malaysia. Two separatequestionnaire surveys were distributed to banks offering Islamic banking in Malaysia. Onewas sent to the Shari'ah department of the Islamic banks and the second to the branchmanagers to assess the current practice and the expectations regarding how the issuesinvestigated are being practised by the Shari'ah board. Furthermore, a series of in-depthinterviews were undertaken with important stakeholders within the Malaysian Shari'ahgovernance framework.Essentially, this study indicates that Shari'ah boards do in the main undertake a valuableShari'ah advisory role and reveals the existence of an established structure for Shari'ahreviews. However, the Shari'ah reviews were found not to be effectively implemented by theShari'ah boards thus raising concern regarding the quality of the Shari'ah reports issued bythe boards highlighting both the importance and need for an external Shari'ah audit. Inaddition, the composition of the Shari'ah board members is revealed to have influence overthe quality of Shari'ah decisions issued by the board. Moreover, the integrity of the Shari'ahboard members, such as their ethical value, reputation and scholarly background, was foundto be important in influencing its accountability and independence. Interestingly, Shari'ahboards were also perceived by branch managers of not providing the required level ofinvolvement. The study also emphasises that branch managers felt the Shari'ah AdvisoryCouncil (SAC) to be the most important party within the Malaysian Shari'ah governanceframework, and that the dual-layer Shari'ah governance system was viewed as havingcontributed to the standardisation of Islamic banking. Also, it appears that the role played bythe Shari'ah Advisory Council (SAC) is not limiting creativity in developing Islamic bankingproducts." @default.
- W1555751505 created "2016-06-24" @default.
- W1555751505 creator A5000414354 @default.
- W1555751505 creator A5066549207 @default.
- W1555751505 date "2012-01-01" @default.
- W1555751505 modified "2023-09-24" @default.
- W1555751505 title "An empirical investigation into the role, independence and effectiveness of Shari’ah boards in the Malaysian Islamic banking industry" @default.
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