Md. Kausar Alam, Abu Umar Faruq Ahmad, Aishath Muneeza, Mosab I. Tabash and Md Adnan Rahman
Sharīʿah Secretariat plays a significant role in assisting Sharīʿah Supervisory Boards (SSBs) in their role in achieving Sharīʿah compliance in Islamic banks (IBs). The key…
Abstract
Purpose
Sharīʿah Secretariat plays a significant role in assisting Sharīʿah Supervisory Boards (SSBs) in their role in achieving Sharīʿah compliance in Islamic banks (IBs). The key objective of the study is to develop a organizational framework of the Sharīʿah Secretariat for the IBs in Bangladesh.
Design/methodology/approach
The study applied qualitative case study research. The data have been collected from 17 respondents through semi-structured interviews from IBs and professional experts in Bangladesh.
Findings
This study proposes a full-time Sharīʿah Secretariat and several departments for further enhancement of the Sharīʿah functions in IBs in Bangladesh. The framework proposed in this study covers the formation, functions, composition, qualification, reporting line, independence, remuneration and terms of appointment of the Sharīʿah Secretariat to set a uniform benchmark for all IBs in Bangladesh. It is anticipated that the outcomes of this research will assist to further strengthen the Sharīʿah governance of IBs in Bangladesh.
Research limitations/implications
This research contributed to the national and global regulatory authorities and IBs by proposing a Sharīʿah Secretariat framework for the smooth functioning of the IBs in Bangladesh. The framework proposed in this study covers the formation, functions, composition, qualification, reporting line, independence, remuneration and terms of appointment of Sharīʿah Secretariat.
Originality/value
This study proposed a framework which is considered the first organizational framework so far for the Sharīʿah Secretariat of IBs in Bangladesh. IBs can apply this proposed framework to form their Sharīʿah Secretariat structure.
Details
Keywords
Md. Kausar Alam, Mohammad Shofiqul Islam, Fakir Tajul Islam, Mosab I. Tabash, Mohammad Sahabuddin and Muhammad Alauddin
The study aims to investigate the reasons behind the growing diverse practices of Shariah governance (SG) among Islamic banks in Bangladesh.
Abstract
Purpose
The study aims to investigate the reasons behind the growing diverse practices of Shariah governance (SG) among Islamic banks in Bangladesh.
Design/methodology/approach
Data 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.
Findings
The 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/implications
The 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/value
This 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.
Details
Keywords
Md. Kausar Alam, Mohammad Mizanur Rahman, Mahfuza Kamal Runy, Babatunji Samuel Adedeji and Md. Farjin Hassan
The purpose of this paper is to examine the influences of Shariah governance (SG) mechanisms on Islamic banks' performance and Shariah compliance quality in the context of…
Abstract
Purpose
The purpose of this paper is to examine the influences of Shariah governance (SG) mechanisms on Islamic banks' performance and Shariah compliance quality in the context of Bangladesh.
Design/methodology/approach
A semi-structured personal interview tactic was applied to accomplish the research objectives. The data were collected from the regulators, Shariah supervisory boards, Shariah department executives and Shariah experts from the Central Bank (Bangladesh Bank) and Islamic banks in Bangladesh.
Findings
The study discovers that the quality of the Board of Directors (BODs), Shariah Supervisory Board (SSB), management and Shariah executives have both positive and negative influences on the Shariah compliance quality, image, goodwill and performance of Islamic banks' in Bangladesh. The compositions, formations and quality of SSB and Shariah officers positively influence the Islamic banks' fatwas, Shariah decisions, compliance quality and firm performance. The study also finds that prevailing banking pressure, current political situation, the willingness of BOD and management and social limitations impact Islamic banks' performance, Shariah compliance quality, image and goodwill.
Research limitations/implications
Based on our findings, if the regulators, BODs and Islamic banks can manage effective and efficient executives, it will create a positive impact on Islamic banks' performance, image, goodwill and quality compliance. As the prevailing banking pressure, current political situation and social limitations hinder the functions and employment system of the Islamic banks as well as result the Islamic banks' image, performance, Shariah implementations and compliance. Thus, the theorist needs to consider these mechanisms in extending the agency, stakeholder and resource dependence theories.
Originality/value
This research extends the literature concerning the influences of Islamic banks' SG mechanisms in Bangladesh. The study also argued not only the efficient and effective mechanisms but also the prevailing banking pressure, current political situation and social limitations impact on Islamic banks' performance and Shariah compliance quality.
Details
Keywords
Md. Kausar Alam, Mosab I. Tabash, Oli Ahad Thakur, Md. Mizanur Rahman, M. Naim Siddiquii and Safiqul Hasan
The study aims to examine the independence and effectiveness of the Shariah department officers of the Islamic banks in Bangladesh as the Shariah supervisory board (SSB) provides…
Abstract
Purpose
The study aims to examine the independence and effectiveness of the Shariah department officers of the Islamic banks in Bangladesh as the Shariah supervisory board (SSB) provides the annual Shariah report and Shariah resolutions based on the reports of the Shariah department officers.
Design/methodology/approach
The study applied a qualitative case study to achieve the research objectives. Data were collected through face-to-face interviews with the regulators, Shariah supervisory boards, Shariah department executives, and experts from the central bank and Islamic banks of Bangladesh.
Findings
The study illustrates that Shariah department officers/Shariah officers in Bangladesh seem to lack independence and decision-making authority in accomplishing ex-post Shariah governance functions (i.e. Shariah audit, Shariah compliance and Shariah review) as well as ensuring Shariah compliance. The Shariah officers cannot work spontaneously on practical issues without any interference. The Shariah officers also have to answer to the management regarding their Shariah functions and are not allowed to come up with any opinions without the authority’s authorization.
Research limitations/implications
The study has significant contributions to the central bank and Islamic banks in Bangladesh. This research suggests that regulators, SSB, and Islamic banks should focus on ensuring Shariah compliance and protecting the independence of Shariah department officers as they are mainly related to practical monitoring of Shariah issues. It also suggests that Shariah department officers should directly report to SSB rather than the management regarding Shariah’s compliance and audit issues.
Originality/value
This study is unique in the context of Bangladesh and the global context as a whole for Shariah department officers.
Details
Keywords
Yusuf Karbhari, Md. Kausar Alam and Md. Mizanur Rahman
Prior studies on Islamic finance provide a limited linkage between organizational theory and the complex Shariah governance framework embraced by Islamic banks worldwide. This…
Abstract
Purpose
Prior studies on Islamic finance provide a limited linkage between organizational theory and the complex Shariah governance framework embraced by Islamic banks worldwide. This paper aims to show the relevance of the application of “institutional theory” in the Shariah governance framework of Islamic banks.
Design/methodology/approach
This study applied library research to investigate the application of institutional theory in the Shariah governance framework of Islamic banks. The authors also critically reviewed prior empirical and review papers for accomplishing the research objectives.
Findings
Based on the critical review, the authors found that institutional theory is the most influential in progressing Shariah governance as it contributes toward the organizational image, helps to achieve religious legitimacy, and inspires a more robust regulatory environment. In addition, a well-designed Shariah governance framework is driven by institutional theory and that could assist in providing guidelines, strategies and procedures for Islamic banks to better conduct; monitor and control their social, religious and accountability obligations. The authors also highlighted the societal, economic and legal environment of Islamic banks in relation to the propositions of institutional theory. They emphasize that a well-designed Shariah governance framework driven by institutional theory could assist in providing guidelines, strategies and procedures for Islamic banks to better conduct, monitor and control their social, religious and accountability obligations.
Research limitations/implications
This study highlights institutional theory to serve best the development of operational strategies and structures of Islamic banks including the roles, functions and powers of the various stakeholders including regulators and those involved in the Shariah governance process of Islamic banks. The authors recognize the institutional theory to perform a key role in enriching the structural framework of Islamic Financial Institutions. This study is heavily dependent on prior research rather than empirical investigations. The authors did not cover other Islamic finance areas (such as Islamic insurance, Islamic microfinance and Halal industries). Thus, future researchers can apply institutional theory in Shariah governance practices and implementations of setting up rules by the regulators and respective institutions.
Originality/value
To the best of the authors’ knowledge, this is the first study that attempts to show the importance of the application of institutional theory in Shariah governance of Islamic Banks. Thus, this study, therefore, adding a novel dimension to the literature by arguing why institutional theory, is more pronounced (as compared to the other theoretical frameworks) in the formation and discharge of the roles, powers and functions by the different governance organs (such as regulators, the board of directors, management and Shariah supervisory board) operating in this unique corporate governance landscape.
Details
Keywords
Md. Kausar Alam, Fakir Tajul Islam and Mahfuza Kamal Runy
The purpose of this paper is to explore the question “Why is Shariah Governance Framework (SGF) important for Islamic banks?”
Abstract
Purpose
The purpose of this paper is to explore the question “Why is Shariah Governance Framework (SGF) important for Islamic banks?”
Design/methodology/approach
A semi-structured face-to-face personal interview is used to accomplish the research objectives. This study has collected data from the concerned bodies related to Shariah Governance (SG) from the central bank and Islamic banks of Bangladesh.
Findings
This study states SG as a process of confirming Shariah compliance in the overall functions of the Islamic banks, while Shariah denotes some rules, regulations, guidelines, objectives and directions to enhance accurate functions and activities, which are solely based on Shariah principles. SGF is important for Islamic banks to implement Shariah principles, confirm Shariah compliance and monitor the functions of the banks. Besides, it is needed for a well, efficient, effective, profitable business and higher performance and, finally, to eliminate the confusion among the management, executives, conventional bankers and banks.
Research limitations/implications
This study significantly contributes to the national and global regulatory bodies by providing evidence that why do Islamic banks and financial institutions require a sound SGF. It is recommended that there should be a sound and robust SGF to protect and fulfill the interest, expectations and demands of different stakeholders, which can easily draw their attention, intention and interest.
Originality/value
This is the first research that extends the literature of Islamic banking and SG by highlighting the importance of SGF. This study claims that to be a complete Islamic bank as well as protecting the unique identity from the general banks and corporate governance system, SG manual is required.
Details
Keywords
The study aims to examine the factors affecting the customers' choice of Bangladeshi banks during the Covid-19 pandemic and the moderating effects of private and public banks on…
Abstract
Purpose
The study aims to examine the factors affecting the customers' choice of Bangladeshi banks during the Covid-19 pandemic and the moderating effects of private and public banks on this association.
Design/methodology/approach
This study is based on explanatory research, where significant factors have been explored to evaluate the customers' perception of private and public banks in Bangladesh. Primary data are accumulated through an online survey from customers who have an account in a private or public bank in Bangladesh during the past four months, where 318 (non-probability convenience sampling) are usable, and secondary data are collected from various sources. Descriptive statistics, multiple and hierarchical multiple regressions have been conducted.
Findings
The results revealed that customers consider safe and secure websites, infrastructural facilities, technological know-how, service, price, time, payment, administrative and psychological factors in choosing Bangladeshi banks during Covid-19. Moreover, the results show that private and public banks have moderated these associations.
Originality/value
During Covid-19, few studies were conducted on Pakistani, Sri Lankan and Ethiopian banking customers, where different factors are significant; however, this study is unique because all factors are significant for Bangladeshi banking customers. The findings will originate the value with several theoretical implications and managerial guidelines.
Details
Keywords
Abderahman Rejeb, Karim Rejeb and Suhaiza Zailani
This study aims to address the noted gap in comprehensive overviews detailing the developmental trajectory of Islamic finance (IF) as an interdisciplinary academic field.
Abstract
Purpose
This study aims to address the noted gap in comprehensive overviews detailing the developmental trajectory of Islamic finance (IF) as an interdisciplinary academic field.
Design/methodology/approach
The study introduces a unique approach using the combined methodologies of co-word analysis and main path analysis (MPA) by examining a broad collection of IF research articles.
Findings
The investigation identifies dominant themes and foundational works that have influenced the IF discipline. The data reveals prominent areas such as Shariah governance, financial resilience, ethical dimensions and customer-centric frameworks. The MPA offers detailed insights, narrating a journey from the foundational principles of IF to its current challenges and opportunities. This journey covers harmonizing religious beliefs with contemporary financial models, changes in regulatory landscapes and the continuous effort to align with broader socioeconomic aspirations. Emerging areas of interest include using new technologies in IF, standardizing global Islamic banking and assessing its socioeconomic effects on broader populations.
Originality/value
This study represents a pioneering effort to map out and deepen the understanding of the IF field, highlighting its dynamic evolution and suggesting potential avenues for future academic exploration.
Details
Keywords
Charalampos Alexopoulos, Tariq Ali Said Al-Tamimi and Stuti Saxena
When the repercussions of COVID-19 were being absorbed by the world, the higher educational institutions (HEIs) were conceiving of strategies to run educational institutions on…
Abstract
Purpose
When the repercussions of COVID-19 were being absorbed by the world, the higher educational institutions (HEIs) were conceiving of strategies to run educational institutions on remote basis too, including the challenges linked with the teaching–learning as well as the management and other departmental needs. Leaning itself on the teaching–learning tectonic shifts amid the COVID-19 climes, the study reviews the status of “readiness” of the HEIs in Oman while bearing this in mind that the usage of information and communications technology (ICT) for distance learning and conventional learning has been considered as one of the parameters to judge the “quality” of the HEIs in Oman.
Design/methodology/approach
Documentary analysis alongside an in-depth reading of the quality audit reports sourced from the Oman Academic Accreditation Authority, which are publicly accessible are being referred for driving home the arguments in the study.
Findings
The study concludes that despite the case being in favor of distance learning from early on, the same doesn’t get reflected in the conclusions derived in the research conducted for assessing the teaching–learning mechanisms during the COVID-19 period. Therefore, the HEIs’ “readiness” in terms of ensuring the smooth transitioning to the remote learning pedagogical arrangements for meeting the challenges of the COVID-19 wasn’t efficacious.
Research limitations/implications
The present study may be followed up with an understanding as to how the HEIs of Oman need to incorporate the perspectives of all the concerned stakeholders for the refurbishment of the teaching–learning process, especially in times of contingencies.
Practical implications
Apart from the policy-makers, the management of the HEIs of Oman needs to appreciate the need to be proactive and appreciative of the inclusion of ICT tools and techniques in the mainstream pedagogical settings.
Originality/value
Notwithstanding the emphasis upon the preparedness and readiness for tackling the challenges posed by the COVID-19 for the HEIs in Oman, no study has attempted to delve into the issue succinctly—the present study fills this gap.
Details
Keywords
Beverly J. Irby, Roya Pashmforoosh, Fuhui Tong, Rafael Lara-Alecio, Matthew J. Etchells, Linda Rodriguez, Christopher Prickett and Yingying Zhao
This study was conducted in the United States of America to identify what practices virtual mentor-coaches perceived to be effective in virtual mentoring and coaching (VMC) within…
Abstract
Purpose
This study was conducted in the United States of America to identify what practices virtual mentor-coaches perceived to be effective in virtual mentoring and coaching (VMC) within virtual professional learning communities (VPLCs). The authors also sought to determine the ways in which virtual mentor-coaches provided VMC for school leaders within VPLCs.
Design/methodology/approach
The authors used a phenomenological approach in our research, describing the lived experiences of practicing virtual mentor-coaches as they engaged in VMC. Data analysis included video analysis and systematic coding of interview data.
Findings
An in-depth analysis of interview and video data showed that virtual mentor-coaches support school leaders in developing and transforming school leaders' leadership for building teachers' instructional capacity. The authors identified a VMC process model within VPLCs, including four steps as follows: (1) presentation, (2) collaboration, (3) reflection and (4) action plan.
Practical implications
VMC for school leaders participating in VPLCs is regarded as a transformative model which provides encouragement, reflection and support for instructional leadership actions.
Originality/value
Key steps and components of an effective VMC highlighted in the current research offer practical guidance for future virtual mentor-coaches in conducting and implementing VMC within VPLCs.