An analysis of reputational risks in Islamic banks in Malaysia with a proposed conceptual framework

The most critical intangible asset that a bank possesses is its reputation. The reputation reflects a bank’s relative success in fulfilling the expectations of multiple stakeholders. Establishing a great reputation is a key element of organizational strategy, especially for banks. In case of Islamic...

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Main Authors:	Azrak, Tawfik, Saiti, Buerhan, Engku Ali, Engku Rabiah Adawiah
Format:	Article
Language:	English English English
Published:	IIUM 2016
Subjects:	HG1501 Banking
Online Access:	http://irep.iium.edu.my/54315/ http://irep.iium.edu.my/54315/ http://irep.iium.edu.my/54315/1/54315-analysis%20of%20reputational%20risks%20in%20Islamic%20banks%20in%20Malaysia%20with%20a%20proposed%20conceptual%20framework.pdf http://irep.iium.edu.my/54315/7/54315-wos.pdf http://irep.iium.edu.my/54315/13/54315_An%20analysis%20of%20reputational%20risks%20in%20islamic%20banks_scopus.pdf

id	iium-54315
recordtype	eprints
spelling	iium-543152017-10-10T04:51:43Z http://irep.iium.edu.my/54315/ An analysis of reputational risks in Islamic banks in Malaysia with a proposed conceptual framework Azrak, Tawfik Saiti, Buerhan Engku Ali, Engku Rabiah Adawiah HG1501 Banking The most critical intangible asset that a bank possesses is its reputation. The reputation reflects a bank’s relative success in fulfilling the expectations of multiple stakeholders. Establishing a great reputation is a key element of organizational strategy, especially for banks. In case of Islamic banks, this is more important due to the nature of its business which is reputed to be defined by shariah principles. Any significant issues with regard to the operations of Islamic banks either in terms of shariah non-compliant financial products or customer complaints may damage the reputations of Islamic banks, thereby driving away customers, investors, shareholders and counterparties. As such, it is expected that Islamic banks pay more attention to managing reputational risks. This paper provides a review on the annual reports and financial statements of local and Islamic banks in Malaysia in order to assess the transparency of reporting and disclosing their reputational risk management framework. It is found that local domestic Islamic banks in Malaysia are more transparent compared to the locally incorporated foreign Islamic banks. Finally, we propose a framework for Islamic banks to manage reputational risks. IIUM 2016 Article PeerReviewed application/pdf en http://irep.iium.edu.my/54315/1/54315-analysis%20of%20reputational%20risks%20in%20Islamic%20banks%20in%20Malaysia%20with%20a%20proposed%20conceptual%20framework.pdf application/pdf en http://irep.iium.edu.my/54315/7/54315-wos.pdf application/pdf en http://irep.iium.edu.my/54315/13/54315_An%20analysis%20of%20reputational%20risks%20in%20islamic%20banks_scopus.pdf Azrak, Tawfik and Saiti, Buerhan and Engku Ali, Engku Rabiah Adawiah (2016) An analysis of reputational risks in Islamic banks in Malaysia with a proposed conceptual framework. Al-Shajarah: Journal of the International Institute of Islamic Thought and Civilization (ISTAC) (SI). pp. 331-360. ISSN 1394-6870 http://journals.iium.edu.my/shajarah
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English English
topic	HG1501 Banking
spellingShingle	HG1501 Banking Azrak, Tawfik Saiti, Buerhan Engku Ali, Engku Rabiah Adawiah An analysis of reputational risks in Islamic banks in Malaysia with a proposed conceptual framework
description	The most critical intangible asset that a bank possesses is its reputation. The reputation reflects a bank’s relative success in fulfilling the expectations of multiple stakeholders. Establishing a great reputation is a key element of organizational strategy, especially for banks. In case of Islamic banks, this is more important due to the nature of its business which is reputed to be defined by shariah principles. Any significant issues with regard to the operations of Islamic banks either in terms of shariah non-compliant financial products or customer complaints may damage the reputations of Islamic banks, thereby driving away customers, investors, shareholders and counterparties. As such, it is expected that Islamic banks pay more attention to managing reputational risks. This paper provides a review on the annual reports and financial statements of local and Islamic banks in Malaysia in order to assess the transparency of reporting and disclosing their reputational risk management framework. It is found that local domestic Islamic banks in Malaysia are more transparent compared to the locally incorporated foreign Islamic banks. Finally, we propose a framework for Islamic banks to manage reputational risks.
format	Article
author	Azrak, Tawfik Saiti, Buerhan Engku Ali, Engku Rabiah Adawiah
author_facet	Azrak, Tawfik Saiti, Buerhan Engku Ali, Engku Rabiah Adawiah
author_sort	Azrak, Tawfik
title	An analysis of reputational risks in Islamic banks in Malaysia with a proposed conceptual framework
title_short	An analysis of reputational risks in Islamic banks in Malaysia with a proposed conceptual framework
title_full	An analysis of reputational risks in Islamic banks in Malaysia with a proposed conceptual framework
title_fullStr	An analysis of reputational risks in Islamic banks in Malaysia with a proposed conceptual framework
title_full_unstemmed	An analysis of reputational risks in Islamic banks in Malaysia with a proposed conceptual framework
title_sort	analysis of reputational risks in islamic banks in malaysia with a proposed conceptual framework
publisher	IIUM
publishDate	2016
url	http://irep.iium.edu.my/54315/ http://irep.iium.edu.my/54315/ http://irep.iium.edu.my/54315/1/54315-analysis%20of%20reputational%20risks%20in%20Islamic%20banks%20in%20Malaysia%20with%20a%20proposed%20conceptual%20framework.pdf http://irep.iium.edu.my/54315/7/54315-wos.pdf http://irep.iium.edu.my/54315/13/54315_An%20analysis%20of%20reputational%20risks%20in%20islamic%20banks_scopus.pdf
first_indexed	2023-09-18T21:16:52Z
last_indexed	2023-09-18T21:16:52Z
_version_	1777411620906991616

An analysis of reputational risks in Islamic banks in Malaysia with a proposed conceptual framework

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