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The Reasons Behind the Absence of a Comprehensive Shariah Governance Framework of Islamic Banks in Bangladesh

Author

Listed:
  • Md. Kausar Alama
  • Suhaimi Ab. Rahmanb
  • Oli Ahad Thakurc
  • Md Abdul Bashird
  • and Sharif Hosene

Abstract

Purpose: The main objective of the study is to examine the reasons behind the absence of a comprehensive Shariah Governance Framework (SGF) of Islamic banks in Bangladesh. Design/Methodology/Approach: The study has covered 17 respondents through semi-structured interviews from the Islamic banks and the Central Bank of Bangladesh with a combination of Shariah supervisory board members, Shariah department executives, Central Bank executives, and banking experts. Findings: Based on findings, this study outlines that the knowledge gap of management, unqualified Shariah supervisory boards members, executives in Central Bank and Islamic banks, and intention of the regulators, policymakers, Shariah experts, government executives, Islamic bankers, Board of directors, stakeholders and civil societies are responsible for the absence of a comprehensive SGF. Practical Implications: The study has significantly contributed to the national regulators, government, and the Central Bank of Bangladesh on the subject for developing a comprehensive Shariah Governance Framework. Originality/Value: The study highlights the reasons for the absence of a comprehensive Shariah Governance Framework which was unexplored for more than 30 years.

Suggested Citation

  • Md. Kausar Alama & Suhaimi Ab. Rahmanb & Oli Ahad Thakurc & Md Abdul Bashird & and Sharif Hosene, 2020. "The Reasons Behind the Absence of a Comprehensive Shariah Governance Framework of Islamic Banks in Bangladesh," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 134-145.
    • Handle: RePEc:ers:ijebaa:v:viii:y:2020:i:1:p:134-145
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    References listed on IDEAS

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    1. Dodi Permana, 2017. "Toward the Best Model of Strategy Implementation in Indonesian Islamic Banking from the Lens of Strategic Clarity," European Research Studies Journal, European Research Studies Journal, vol. 0(4B), pages 3-15.
    2. Hafezali Iqbal Hussain & Mohd Farid Shamsudin & Shahrullizuannizam Salehuddin & Noor H. Jabarullah, 2018. "Debt Maturity and Shari'ah Compliance: Evidence from Malaysian Panel Data," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 176-186.
    3. Md. Kausar Alam & Suhaimi Ab Rahman & Hasri Mustafa & Sabarina Mohammed Shah & Md. Shamim Hossain, 2019. "Shariah Governance Framework of Islamic Banks in Bangladesh: Practices, Problems and Recommendations," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(1), pages 118-132, January.
    4. Hennie Van Greuning & Zamir Iqbal, 2008. "Risk Analysis for Islamic Banks," World Bank Publications - Books, The World Bank Group, number 6923, December.
    5. T. Suryanto & J.E. Thalassinos & E.I. Thalassinos, 2017. "Board Characteristics, Audit Committee and Audit Quality: The Case of Indonesia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 44-57.
    6. Md. Kausar Alam & Suhaimi Ab Rahman & Hasri Mustafa & Sabarina Mohammed Shah & Md. Shamim Hossain, 2019. "Shariah Governance Framework of Islamic Banks in Bangladesh: Practices, Problems and Recommendations," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 9(1), pages 118-132.
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    More about this item

    Keywords

    Shariah Governance Framework; Islamic banks; Bangladesh.;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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