Whether Shari’ah compliance efficiency is a matter for the financial performance

  • The case of Islami Bank Bangladesh Limited
  • Md. Hafij Ullah, Ruma Khanam
  • Journal of Islamic Accounting and Business Research, March 2018, Emerald
  • DOI: 10.1108/jiabr-01-2016-0001

Shari’ah compliance and financial performance: Islami Bank Bangladesh

What is it about?

Shari’ah is the foundation of Islamic banks. Although all the Islamic banks required complying with the Shari’ah requirements fully, the level of compliance differs among the Islamic banks. At the same time, Islamic banks have been performing well, but all do not demonstrate similar financial performance. This paper aims to explore whether Shari’ah compliance efficiency makes any difference in financial performance of Islami Bank Bangladesh Limited (IBBL).

Why is it important?

The study used a qualitative method using interview responses only for evaluating the relationship between Shari’ah compliance and financial performance. Further study may be conducted based on a quantitative approach. This paper expects to uphold the significance of Shari’ah in improving the financial performance of IBBL and simultaneously motivating the parties associated with the Islamic banks in enhancing the level of Shari’ah compliance. Moreover, this study provides new insights into the importance Islamic banks and their performance in relation to the choice of customers.

Perspectives

Dr. Md. Hafij Ullah
International Islamic University Chittagong

This study explores the significance of Shari’ah compliance in creating avenues for greater financial performance and develops a model showing the ways how Shari’ah compliance leads Islamic banks to achieve higher financial positions.

Read Publication

http://dx.doi.org/10.1108/jiabr-01-2016-0001

The following have contributed to this page: Dr. Md. Hafij Ullah