Islamic Bank’s Financial Performance Indicators

Financial performance is pertinent in verifying the strength and survival of a company or business as the market player in the industry. However, there is an element which applied in the conventional bank but been prohibited to be applied and recognized by Islamic bank which is riba’ (interest) el...

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Main Authors:	Norazidah, Shamsudin, Fatimah, Mahmud, Safiynaz, Omar
Format:	Conference or Workshop Item
Language:	English
Published:	Advances in Global Business Research 2015
Subjects:	HG Finance
Online Access:	http://umpir.ump.edu.my/id/eprint/15324/ http://umpir.ump.edu.my/id/eprint/15324/ http://umpir.ump.edu.my/id/eprint/15324/1/Islamic%20Bank%20Financial%20Performance%20Indicators.pdf

id	ump-15324
recordtype	eprints
spelling	ump-153242018-02-06T01:31:28Z http://umpir.ump.edu.my/id/eprint/15324/ Islamic Bank’s Financial Performance Indicators Norazidah, Shamsudin Fatimah, Mahmud Safiynaz, Omar HG Finance Financial performance is pertinent in verifying the strength and survival of a company or business as the market player in the industry. However, there is an element which applied in the conventional bank but been prohibited to be applied and recognized by Islamic bank which is riba’ (interest) element. Conventional and Islamic banks have different practice in doing business which conventional bank would generate their main income from interest charged, but, Islamic bank is prohibited involve in riba’ (interest) practice. Unfortunately, financial performance of Islamic banks currently still be measured by conventional performance measurement which widely be measured by financial ratios. Since the recognition and approval of interest from these two types of bank is differ, hence, there is a need for different performance measurement indicators. In order to develop a unique indicator for financial performance, it should be refer to the objective of establishing the business. As for Islamic bank, supposedly the establishment of the institution is to fulfill the maslahah and shouldn’t be focused on profit-earnings as the priority.It is suggested Islamic banks should put maslahah and Maqasid al-Shari'ahas the main framework for Islamic financial performance measurement indicators. Hence, further study need to be done on reconstructing the pure framework of Islamic financial performance measurement. Advances in Global Business Research 2015 Conference or Workshop Item PeerReviewed application/pdf en http://umpir.ump.edu.my/id/eprint/15324/1/Islamic%20Bank%20Financial%20Performance%20Indicators.pdf Norazidah, Shamsudin and Fatimah, Mahmud and Safiynaz, Omar (2015) Islamic Bank’s Financial Performance Indicators. In: Book of Abstracts 12th Annual World Congress of the Academy for Global Business Advancement (AGBA), 16-19 November 2015 , Kuantan, Malaysia. p. 162., 12 (1). ISSN 1549-9332 http://www.agba.us/pdf/2015-AGBA-Book-of-Abstracts.pdf
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Malaysia Pahang
building	UMP Institutional Repository
collection	Online Access
language	English
topic	HG Finance
spellingShingle	HG Finance Norazidah, Shamsudin Fatimah, Mahmud Safiynaz, Omar Islamic Bank’s Financial Performance Indicators
description	Financial performance is pertinent in verifying the strength and survival of a company or business as the market player in the industry. However, there is an element which applied in the conventional bank but been prohibited to be applied and recognized by Islamic bank which is riba’ (interest) element. Conventional and Islamic banks have different practice in doing business which conventional bank would generate their main income from interest charged, but, Islamic bank is prohibited involve in riba’ (interest) practice. Unfortunately, financial performance of Islamic banks currently still be measured by conventional performance measurement which widely be measured by financial ratios. Since the recognition and approval of interest from these two types of bank is differ, hence, there is a need for different performance measurement indicators. In order to develop a unique indicator for financial performance, it should be refer to the objective of establishing the business. As for Islamic bank, supposedly the establishment of the institution is to fulfill the maslahah and shouldn’t be focused on profit-earnings as the priority.It is suggested Islamic banks should put maslahah and Maqasid al-Shari'ahas the main framework for Islamic financial performance measurement indicators. Hence, further study need to be done on reconstructing the pure framework of Islamic financial performance measurement.
format	Conference or Workshop Item
author	Norazidah, Shamsudin Fatimah, Mahmud Safiynaz, Omar
author_facet	Norazidah, Shamsudin Fatimah, Mahmud Safiynaz, Omar
author_sort	Norazidah, Shamsudin
title	Islamic Bank’s Financial Performance Indicators
title_short	Islamic Bank’s Financial Performance Indicators
title_full	Islamic Bank’s Financial Performance Indicators
title_fullStr	Islamic Bank’s Financial Performance Indicators
title_full_unstemmed	Islamic Bank’s Financial Performance Indicators
title_sort	islamic bank’s financial performance indicators
publisher	Advances in Global Business Research
publishDate	2015
url	http://umpir.ump.edu.my/id/eprint/15324/ http://umpir.ump.edu.my/id/eprint/15324/ http://umpir.ump.edu.my/id/eprint/15324/1/Islamic%20Bank%20Financial%20Performance%20Indicators.pdf
first_indexed	2023-09-18T22:19:52Z
last_indexed	2023-09-18T22:19:52Z
_version_	1777415584527417344

Islamic Bank’s Financial Performance Indicators

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