Shariah governance in Islamic banks: Practices, practitioners and praxis

• Main Authors: Fatmawati, Dewi, Ariffin, Noraini Mohd., Abidin, Nor Hafizah Zainal, Osman, Ahmad Zamri
• 格式: Article PeerReviewed
• 語言: English
• 出版: Elsevier B.V. 2022
• 主題: Economic Islam
• 在線閱讀: https://repository.ugm.ac.id/282007/1/Shariah%20governance%20in%20Islamic%20banks-%20Practices%2C%20practitioners%20and%20praxis.pdf; https://repository.ugm.ac.id/282007/; https://www.sciencedirect.com/science/article/pii/S104402831930359X?via%3Dihub

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. © 2020 Elsevier Inc.