Shariah governance in Islamic banks: Practices, practitioners and praxis

Dewi Fatmawati, Noraini Mohd. Ariffin, Nor Hafizah Zainal Abidin and Ahmad Zamri Osman

Global Finance Journal, 2022, vol. 51, issue C

Abstract: This study examines Shariah governance in Islamic banks by analyzing and comparing international and national Shariah governance codes across 11 countries and the annual reports of the largest stand-alone Islamic bank in each of these countries. Drawing upon the practice theory framework, this study identifies the similarities and differences across countries in Shariah governance practices, practitioners, and praxis. Regarding practices, we found that the 11 countries reviewed have adopted different approaches, i.e., strict, moderate, or flexible approaches, in developing regulations for Shariah governance structures and processes. The approach taken by each country, in turn, influences Shariah governance practitioners and praxis at the institutional level to some extent. Specifically, Islamic banks in countries belonging to the moderate and flexible groups are likely to be more varied in terms of Shariah governance practitioners as well as praxis (activities or processes) to ensure Shariah compliance as compared to their counterparts in countries with strict regulations. Analyzing current Shariah governance practices in these 11 countries can promote a greater understanding and resolution in addressing critical issues due to different contextual circumstances. Therefore, the findings of this study can provide relevant information for both regulators and practitioners to further improve the Shariah governance best practices in the Islamic banking industry.

Keywords: Islamic banks; Shariah governance; Shariah Supervisory Board; Practice theory (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S104402831930359X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:glofin:v:51:y:2022:i:c:s104402831930359x

DOI: 10.1016/j.gfj.2020.100555

Access Statistics for this article

Global Finance Journal is currently edited by Manuchehr Shahrokhi

More articles in Global Finance Journal from Elsevier
Bibliographic data for series maintained by Catherine Liu ().