Shariah non-compliance risk and its effects on Islamic financial institutions

The objective of this paper is to provide the definition of shariah non-compliance risk associated with Islamic financial institutions (IFIs). Having a precise definition of shariah non-compliance risks is highly necessary for the purpose of developing a comprehensive risk management framework for a...

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Main Author:	Hassan, Rusni
Format:	Article
Language:	English English English
Published:	International Islamic University Malaysia 2016
Subjects:	HG Finance
Online Access:	http://irep.iium.edu.my/56556/ http://irep.iium.edu.my/56556/ http://irep.iium.edu.my/56556/1/56556_Shariah%20non-compliance%20risk_WoS.pdf http://irep.iium.edu.my/56556/2/56556_Shariah%20non-compliance%20risk.pdf http://irep.iium.edu.my/56556/13/56556_Shariah%20non-compliance%20risk_scopus.pdf

id	iium-56556
recordtype	eprints
spelling	iium-565562017-10-10T04:58:01Z http://irep.iium.edu.my/56556/ Shariah non-compliance risk and its effects on Islamic financial institutions Hassan, Rusni HG Finance The objective of this paper is to provide the definition of shariah non-compliance risk associated with Islamic financial institutions (IFIs). Having a precise definition of shariah non-compliance risks is highly necessary for the purpose of developing a comprehensive risk management framework for an Islamic financial system. This study is conducted through a literature review on Islamic turath, regulatory provisions and existing academic journals on Islamic risk management. This paper provides an in-depth discussion on the major elements that trigger shariah non-compliance risks and hence affects the validity of Islamic contracts such as riba, gharar, taghrir, ghubn, etc. These elements of risk were identified as that emerging from the entire process of developing an Islamic financial product, starting from the structuring stage until the execution of the product in the market and hence cause severe both financial and non-financial costs to IFIs. This research may have some implications to the Islamic finance industry in Malaysia, becoming a reference for Malaysian IFIs in structuring their own comprehensive risk management and internal control system and hence enhance the effectiveness of the shariah governance practice within the IFIs. International Islamic University Malaysia 2016 Article PeerReviewed application/pdf en http://irep.iium.edu.my/56556/1/56556_Shariah%20non-compliance%20risk_WoS.pdf application/pdf en http://irep.iium.edu.my/56556/2/56556_Shariah%20non-compliance%20risk.pdf application/pdf en http://irep.iium.edu.my/56556/13/56556_Shariah%20non-compliance%20risk_scopus.pdf Hassan, Rusni (2016) Shariah non-compliance risk and its effects on Islamic financial institutions. Al-Shajarah, 21 (3 Special Issue). pp. 21-25. ISSN 1394-6870 http://journals.iium.edu.my/shajarah/index.php/shaj/article/view/411
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English English
topic	HG Finance
spellingShingle	HG Finance Hassan, Rusni Shariah non-compliance risk and its effects on Islamic financial institutions
description	The objective of this paper is to provide the definition of shariah non-compliance risk associated with Islamic financial institutions (IFIs). Having a precise definition of shariah non-compliance risks is highly necessary for the purpose of developing a comprehensive risk management framework for an Islamic financial system. This study is conducted through a literature review on Islamic turath, regulatory provisions and existing academic journals on Islamic risk management. This paper provides an in-depth discussion on the major elements that trigger shariah non-compliance risks and hence affects the validity of Islamic contracts such as riba, gharar, taghrir, ghubn, etc. These elements of risk were identified as that emerging from the entire process of developing an Islamic financial product, starting from the structuring stage until the execution of the product in the market and hence cause severe both financial and non-financial costs to IFIs. This research may have some implications to the Islamic finance industry in Malaysia, becoming a reference for Malaysian IFIs in structuring their own comprehensive risk management and internal control system and hence enhance the effectiveness of the shariah governance practice within the IFIs.
format	Article
author	Hassan, Rusni
author_facet	Hassan, Rusni
author_sort	Hassan, Rusni
title	Shariah non-compliance risk and its effects on Islamic financial institutions
title_short	Shariah non-compliance risk and its effects on Islamic financial institutions
title_full	Shariah non-compliance risk and its effects on Islamic financial institutions
title_fullStr	Shariah non-compliance risk and its effects on Islamic financial institutions
title_full_unstemmed	Shariah non-compliance risk and its effects on Islamic financial institutions
title_sort	shariah non-compliance risk and its effects on islamic financial institutions
publisher	International Islamic University Malaysia
publishDate	2016
url	http://irep.iium.edu.my/56556/ http://irep.iium.edu.my/56556/ http://irep.iium.edu.my/56556/1/56556_Shariah%20non-compliance%20risk_WoS.pdf http://irep.iium.edu.my/56556/2/56556_Shariah%20non-compliance%20risk.pdf http://irep.iium.edu.my/56556/13/56556_Shariah%20non-compliance%20risk_scopus.pdf
first_indexed	2023-09-18T21:19:48Z
last_indexed	2023-09-18T21:19:48Z
_version_	1777411805532913664

Shariah non-compliance risk and its effects on Islamic financial institutions

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