IDEAS home Printed from https://ideas.repec.org/a/pal/jbkreg/v23y2022i2d10.1057_s41261-021-00153-5.html
   My bibliography  Save this article

Regulatory regimes for Sharīʿah governance: A framework of assessment and analysis

Author

Listed:
  • Abdulrahman B. AlQassar

    (Nottingham University Business School)

  • Habib Ahmed

    (Durham University Business School, Durham University)

Abstract

This paper develops a framework of assessing de jure adoption of Sharīʿah governance standards of international standards setting bodies and uses it to assess the legal and regulatory framework of Sharīʿah governance regimes (SGR). Using leximetrics and content analysis, the framework is used to assess SGR in four countries (Kuwait, Malaysia, Pakistan and UAE) in an objective manner. The results show that Malaysia has the most robust SGR and UAE has the weakest legal and regulatory environment of Sharīʿah governance. The results also identify the weaknesses in the SGR and areas that can be improved further. Furthermore, the paper reveals the diversity in the qualitative nature of SGR in terms of the extent to which the laws and regulations are used to develop the SGR in different countries. As the Islamic financial industry continues to grow globally, regulators would need to mitigate the Sharīʿah non-compliant risk by introducing the international Sharīʿah governance standards to promote growth and ensure stability of the sector. The framework to assess the SGR can be a used as a first step to assess the SGR in different jurisdictions to identify the weaknesses and come up with relevant laws and regulations to strengthen the SGR for the development of a robust Islamic financial sector.

Suggested Citation

  • Abdulrahman B. AlQassar & Habib Ahmed, 2022. "Regulatory regimes for Sharīʿah governance: A framework of assessment and analysis," Journal of Banking Regulation, Palgrave Macmillan, vol. 23(2), pages 139-154, June.
    • Handle: RePEc:pal:jbkreg:v:23:y:2022:i:2:d:10.1057_s41261-021-00153-5
    DOI: 10.1057/s41261-021-00153-5
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41261-021-00153-5
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41261-021-00153-5?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Buchanan, John & Chai, Dominic Heesang & Deakin, Simon, 2014. "Empirical analysis of legal institutions and institutional change: multiple-methods approaches and their application to corporate governance research," Journal of Institutional Economics, Cambridge University Press, vol. 10(1), pages 1-20, March.
    2. Waeibrorheem Waemustafa & Azrul Abdullah, 2015. "Mode of Islamic Bank Financing: Does Effectiveness of Shariah Supervisory Board Matter?," Post-Print halshs-01509026, HAL.
    3. Priya P. Lele & Mathias M. Siems, 2009. "Shareholder Protection: A Leximetric Approach," Chapters, in: Thankom Gopinath Arun & John Turner (ed.), Corporate Governance and Development, chapter 10, Edward Elgar Publishing.
    4. C. K. Rowland & Roger Marz, 1982. "Gresham'S Law: The Regulatory Analogy," Review of Policy Research, Policy Studies Organization, vol. 1(3), pages 572-580, February.
    5. Nurfarahin M. Haridan & Ahmad F. S. Hassan & Yusuf Karbhari, 2018. "Governance, religious assurance and Islamic banks: Do Shariah boards effectively serve?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(4), pages 1015-1043, December.
    6. Zoe Adams & Parisa Bastani & Louise Bishop & Simon Deakin, 2017. "The CBR-LRI Dataset: Methods, Properties & Potential of Leximetric Coding of Labour Laws," Working Papers wp489, Centre for Business Research, University of Cambridge.
    7. Ataur Belal & Omneya Abdelsalam & Sardar Nizamee, 2015. "Ethical Reporting in Islami Bank Bangladesh Limited (1983–2010)," Journal of Business Ethics, Springer, vol. 129(4), pages 769-784, July.
    8. Santosh Pande & Valeed Ahmad Ansari, 2014. "A Theoretical Framework for Corporate Governance," Indian Journal of Corporate Governance, , vol. 7(1), pages 56-72, January.
    9. Khan, Feisal, 2010. "How 'Islamic' is Islamic Banking?," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 805-820, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Deakin, Simon & Sarkar, Prabirjit & Siems, Mathias, 2018. "Is There a Relationship Between Shareholder Protection and Stock Market Development?," Journal of Law, Finance, and Accounting, now publishers, vol. 3(1), pages 115-146, May.
    2. Simon Deakin, 2018. "The Use of Quantitative Methods in Labour Law Research: An Assessment and Reformulation," Working Papers wp495, Centre for Business Research, University of Cambridge.
    3. Suzanne Kingston & Zizhen Wang & Edwin Alblas & Micheál Callaghan & Julie Foulon & Valesca Lima & Geraldine Murphy, 2022. "The democratisation of European nature governance 1992–2015: introducing the comparative nature governance index," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 22(1), pages 27-48, March.
    4. Habib Ahmed & Ili Rahilah Ibrahim, 2018. "Financial Consumer Protection Regime in Malaysia: Assessment of the Legal and Regulatory Framework," Journal of Consumer Policy, Springer, vol. 41(2), pages 159-175, June.
    5. Simon Deakin & Antara Haldar, 2015. "How Should India Reforms Its Labour Laws?," Working Papers wp469, Centre for Business Research, University of Cambridge.
    6. Ilhan-Nas, Tulay & Okan, Tarhan & Tatoglu, Ekrem & Demirbag, Mehmet & Wood, Geoffrey & Glaister, Keith W., 2018. "Board composition, family ownership, institutional distance and the foreign equity ownership strategies of Turkish MNEs," Journal of World Business, Elsevier, vol. 53(6), pages 862-879.
    7. Beck, Thorsten & Demirgüç-Kunt, Asli & Merrouche, Ouarda, 2013. "Islamic vs. conventional banking: Business model, efficiency and stability," Journal of Banking & Finance, Elsevier, vol. 37(2), pages 433-447.
    8. Fernando del Río, 2021. "The impact of rent seeking on social infrastructure and productivity," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1741-1760, August.
    9. Sandra Cavaco & Patricia Crifo & Antoine Rebérioux & Gwenael Roudaut, 2014. "Independent directors: less informed, but better selected? New evidence from a two-way director-firm fixed effect model," Working Papers hal-04141284, HAL.
    10. Othaman, Ridhuan, 2017. "Performance and Size of Fraser & Neave Holdings Bhd (F&N)," MPRA Paper 78503, University Library of Munich, Germany.
    11. Baele, Lieven & Farooq, Moazzam & Ongena, Steven, 2014. "Of religion and redemption: Evidence from default on Islamic loans," Journal of Banking & Finance, Elsevier, vol. 44(C), pages 141-159.
    12. Syed Abul Basher & Lawrence M. Kessler & Murat K. Munkin, 2017. "Bank capital and portfolio risk among Islamic banks," Review of Financial Economics, John Wiley & Sons, vol. 34(1), pages 1-9, September.
    13. Christian Weiss & Stefan Hilger, 2012. "Ownership concentration beyond good and evil: is there an effect on corporate performance?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(4), pages 727-752, November.
    14. Marc Berninger & Markus Klug & Dirk Schiereck, 2018. "Börsenrückzüge infolge steigender Corporate-Governance-Anforderungen – Empirische Evidenz von 13 europäischen Kapitalmärkten [Delistings due to Increased Corporate Governance Requirements – Empiric," Schmalenbach Journal of Business Research, Springer, vol. 70(4), pages 351-391, December.
    15. Istvan Egresi & Rauf Belge, 2015. "Development Of Islamic Banking In Turkey," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 6, pages 5-20, December.
    16. Sarkar, Prabirjit, 2007. "Stock Market Developments and Capital Accumulation in India: Does Better Shareholder Protection Matter?," MPRA Paper 4996, University Library of Munich, Germany.
    17. Adam Levai & Riccardo Turati, 2021. "The Impact of Immigration on Workers’ Protection," LIDAM Discussion Papers IRES 2021021, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES), revised 07 Sep 2021.
    18. Lim, Yi Lam, 2017. "The Determinants of Profitability for Kerjaya Prosepk," MPRA Paper 78413, University Library of Munich, Germany.
    19. Simon Deakin & Prabirjit Sarkar, 2008. "Assessing the Long-Run Economic Impact of Labour Law Systems: A Theoretical Reappraisal and Analysis of New Time Series Data," WEF Working Papers 0043, ESRC World Economy and Finance Research Programme, Birkbeck, University of London.
    20. Shahardin, Nur'Izzate Iwana, 2017. "Monitoring Performance of Maybank Berhad in the Presence of Risk," MPRA Paper 78681, University Library of Munich, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jbkreg:v:23:y:2022:i:2:d:10.1057_s41261-021-00153-5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave-journals.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.