What is it about?
Bank Muamalat Malaysia Bhd. (BMMB) is another banking service provider in Malaysian business environment wherein every operation and administrative practices are according to prescription of Shariah. During the interview with bank manager, his answered, “… of course every work must follow the Islamic code of conducts and it is against Shariah if we disobey religious prescriptions in our banking services….” Accordingly, the way we conduct our business, the talk, dress code, attending meetings, recreation programs, organizing sports, etc. must follow the Islamic teachings encompassing top to bottom levels in the management hierarchy of the organisation.
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Why is it important?
Any matter that is against the Shariah will not be practiced in BMMB, and if it does happen, our Majlis Penasihat Syariah (MPS) which means the shariah advisory will take the role by advising and giving motivation at the bank. Therefore, training plays important role, thus a person must be trained and guided by the management. Failing which, if any matter occurs and it need to be strictly avoided, could be elevated at Sahriah Advisory Council (SAC) at the central bank (BNM) level for punitive actions.
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This page is a summary of: Bank Muamalat follows the suit, November 2021, Taylor & Francis, DOI: 10.4324/9781003243779-5.
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Islamic management practices in financial institutions
The Islamic perspective of banking system is not necessarily in consonance with the conventional banking and the shariah compliance is the only way to abide by the code of conduct at the organizational level to justify the business activities as an Islamic. During the interview for data collection, the management confirms these issues and the case study has captured their answers as if the management practices are in compliance with shariah.
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