Developing a Maqasid-based performance measurement index for Islamic banks

The upsurge of Islamic banking has always been seen from the perspective of growth of assets and market share which somehow depict the profit oriented nature of a business entity. “Riba free banking” seems to be the only factor that differentiates Islamic banking from its conventional counterpart. A...

Full description

Bibliographic Details
Main Author:	Islam, Rafikul
Format:	Conference or Workshop Item
Language:	English English
Published:	2017
Subjects:	HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/63784/ http://irep.iium.edu.my/63784/ http://irep.iium.edu.my/63784/1/Sharjah%20slides%20in%20PDF.pdf http://irep.iium.edu.my/63784/9/63784_Developing%20a%20Maqasid-based-tentative.pdf

id	iium-63784
recordtype	eprints
spelling	iium-637842018-05-25T07:05:58Z http://irep.iium.edu.my/63784/ Developing a Maqasid-based performance measurement index for Islamic banks Islam, Rafikul HG3368 Islamic Banking and Finance The upsurge of Islamic banking has always been seen from the perspective of growth of assets and market share which somehow depict the profit oriented nature of a business entity. “Riba free banking” seems to be the only factor that differentiates Islamic banking from its conventional counterpart. As a result, the true objective of Islamic banks which is the fulfillment of “Maqasid al Shariah” have not been formally addressed. Currently, the Islamic banks are being evaluated by using the same conventional yardstick which mainly focuses on financial measures. Hence, a paradigm shift is required in the Islamic Banking industry where the framework of Maqasid al Shariah will be used for performance evaluation. The objective of this study is to develop a Maqasid al Shariah based Index by operationalizing the Maqasid framework of Imam al Ghazali and Abu Zaharah. At first, semi-structured interviews of experts on Islamic banking and finance (IBF) have been conducted to select the variables for index. Afterwards, a focus group discussion was arranged consisting five experts in IBF to validate the selected variables. Then analytic hierarchy process (AHP) is employed to determine the relative importance and weight of each Maqasid item and sub-items. The respondents in this case are the industry experts, Shariah scholars and academics. Based upon this, an index is developed to rank the performance of Islamic banks in Malaysia. This study contributes to the theory of Maqasid al Shariah with respect to banking performance evaluation by identifying the necessary variables to operationalize Maqasid items. The Maqasid-based index is expected to assist the stakeholders to measure how far the performance of IB’s are in line with Maqasid al shariah. 2017 Conference or Workshop Item NonPeerReviewed application/pdf en http://irep.iium.edu.my/63784/1/Sharjah%20slides%20in%20PDF.pdf application/pdf en http://irep.iium.edu.my/63784/9/63784_Developing%20a%20Maqasid-based-tentative.pdf Islam, Rafikul (2017) Developing a Maqasid-based performance measurement index for Islamic banks. In: 2nd Sharjah International Conference on Islamic Economy 2017, 4th-5th October 2017, Sharjah. (Unpublished) http://www.sharjah.ac.ae/en/Media/Conferences/2ICIE/Pages/default.aspx
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG3368 Islamic Banking and Finance
spellingShingle	HG3368 Islamic Banking and Finance Islam, Rafikul Developing a Maqasid-based performance measurement index for Islamic banks
description	The upsurge of Islamic banking has always been seen from the perspective of growth of assets and market share which somehow depict the profit oriented nature of a business entity. “Riba free banking” seems to be the only factor that differentiates Islamic banking from its conventional counterpart. As a result, the true objective of Islamic banks which is the fulfillment of “Maqasid al Shariah” have not been formally addressed. Currently, the Islamic banks are being evaluated by using the same conventional yardstick which mainly focuses on financial measures. Hence, a paradigm shift is required in the Islamic Banking industry where the framework of Maqasid al Shariah will be used for performance evaluation. The objective of this study is to develop a Maqasid al Shariah based Index by operationalizing the Maqasid framework of Imam al Ghazali and Abu Zaharah. At first, semi-structured interviews of experts on Islamic banking and finance (IBF) have been conducted to select the variables for index. Afterwards, a focus group discussion was arranged consisting five experts in IBF to validate the selected variables. Then analytic hierarchy process (AHP) is employed to determine the relative importance and weight of each Maqasid item and sub-items. The respondents in this case are the industry experts, Shariah scholars and academics. Based upon this, an index is developed to rank the performance of Islamic banks in Malaysia. This study contributes to the theory of Maqasid al Shariah with respect to banking performance evaluation by identifying the necessary variables to operationalize Maqasid items. The Maqasid-based index is expected to assist the stakeholders to measure how far the performance of IB’s are in line with Maqasid al shariah.
format	Conference or Workshop Item
author	Islam, Rafikul
author_facet	Islam, Rafikul
author_sort	Islam, Rafikul
title	Developing a Maqasid-based performance measurement index for Islamic banks
title_short	Developing a Maqasid-based performance measurement index for Islamic banks
title_full	Developing a Maqasid-based performance measurement index for Islamic banks
title_fullStr	Developing a Maqasid-based performance measurement index for Islamic banks
title_full_unstemmed	Developing a Maqasid-based performance measurement index for Islamic banks
title_sort	developing a maqasid-based performance measurement index for islamic banks
publishDate	2017
url	http://irep.iium.edu.my/63784/ http://irep.iium.edu.my/63784/ http://irep.iium.edu.my/63784/1/Sharjah%20slides%20in%20PDF.pdf http://irep.iium.edu.my/63784/9/63784_Developing%20a%20Maqasid-based-tentative.pdf
first_indexed	2023-09-18T21:30:28Z
last_indexed	2023-09-18T21:30:28Z
_version_	1777412476491530240

Developing a Maqasid-based performance measurement index for Islamic banks

Similar Items