Cover Image

Measuring shari’ah governance practices: the development of shari’ah governance practices index (SGPi) for Islamic financial institutions in Malaysia

This paperfocuses on developing an index as a quantitative approach to assess Shari’ahgovernance in Islamic financial institutions (IFIs) in Malaysia. The objective is to construct and implement the Shari’ah Governance Practices Index (SGPi) to evaluate the extentof Shari’ah...

Full description

Saved in:
Bibliographic Details
Main Authors: Nazmi, Nor Asila, Hassan, Rusni
Format: Article
Language:English
Published: Semarak Ilmu Publishing 2024
Subjects:
HG3368 Islamic Banking and Finance
Online Access:http://irep.iium.edu.my/115805/1/115805_Measuring%20shari%E2%80%99ah%20governance%20practices.pdf
http://irep.iium.edu.my/115805/
https://semarakilmu.com.my/journals/index.php/sijmaf/article/view/9008
https://doi.org/10.37934/sijmaf.1.1.1428
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.iium.irep.115805
record_format dspace
spelling my.iium.irep.1158052024-11-12T09:10:08Z http://irep.iium.edu.my/115805/ Measuring shari’ah governance practices: the development of shari’ah governance practices index (SGPi) for Islamic financial institutions in Malaysia Nazmi, Nor Asila Hassan, Rusni HG3368 Islamic Banking and Finance This paperfocuses on developing an index as a quantitative approach to assess Shari’ahgovernance in Islamic financial institutions (IFIs) in Malaysia. The objective is to construct and implement the Shari’ah Governance Practices Index (SGPi) to evaluate the extentof Shari’ah governance practices within the IFIs in Malaysia. The SGPi, formulated based on five principal dimensions –Board of Directors, Shari’ah Committee, Management, Shari’ahCompliant Functions, and Institution –is rooted in established standards pertinent to the period analysed. The methodological framework of the SGPi was employed on a dataset consisting of 31 Islamic financial institutions in Malaysia, encompassing Islamic banks, takaful operators, retakaful operators, and development financial institutions. This comprehensive approach facilitated a detailed evaluation of adherence to Shari’ah governance across various types of IFIs. The results indicate that, overall, Islamic financial institutions in Malaysia exhibit strong Shari’ahgovernance practices. However, a comparative analysis among different types of institutions revealed that Islamic banks tend to display slightly superior governance practices compared to takaful and retakaful operators, as well as development financial institutions. This study not only introduces a novel tool for measuring Shari’ahgovernance but also provides insights into the differing levels of compliance across various types of Malaysian IFIs, highlighting the significance of continuous improvement in governance practices to uphold the integrity and sustainability of the Islamic financial system. Semarak Ilmu Publishing 2024-06-05 Article PeerReviewed application/pdf en http://irep.iium.edu.my/115805/1/115805_Measuring%20shari%E2%80%99ah%20governance%20practices.pdf Nazmi, Nor Asila and Hassan, Rusni (2024) Measuring shari’ah governance practices: the development of shari’ah governance practices index (SGPi) for Islamic financial institutions in Malaysia. Semarak International Journal of Modern Accounting and Finance, 1 (1). pp. 14-28. ISSN 3030-6329 https://semarakilmu.com.my/journals/index.php/sijmaf/article/view/9008 https://doi.org/10.37934/sijmaf.1.1.1428
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
topic HG3368 Islamic Banking and Finance
spellingShingle HG3368 Islamic Banking and Finance
Nazmi, Nor Asila
Hassan, Rusni
Measuring shari’ah governance practices: the development of shari’ah governance practices index (SGPi) for Islamic financial institutions in Malaysia
description This paperfocuses on developing an index as a quantitative approach to assess Shari’ahgovernance in Islamic financial institutions (IFIs) in Malaysia. The objective is to construct and implement the Shari’ah Governance Practices Index (SGPi) to evaluate the extentof Shari’ah governance practices within the IFIs in Malaysia. The SGPi, formulated based on five principal dimensions –Board of Directors, Shari’ah Committee, Management, Shari’ahCompliant Functions, and Institution –is rooted in established standards pertinent to the period analysed. The methodological framework of the SGPi was employed on a dataset consisting of 31 Islamic financial institutions in Malaysia, encompassing Islamic banks, takaful operators, retakaful operators, and development financial institutions. This comprehensive approach facilitated a detailed evaluation of adherence to Shari’ah governance across various types of IFIs. The results indicate that, overall, Islamic financial institutions in Malaysia exhibit strong Shari’ahgovernance practices. However, a comparative analysis among different types of institutions revealed that Islamic banks tend to display slightly superior governance practices compared to takaful and retakaful operators, as well as development financial institutions. This study not only introduces a novel tool for measuring Shari’ahgovernance but also provides insights into the differing levels of compliance across various types of Malaysian IFIs, highlighting the significance of continuous improvement in governance practices to uphold the integrity and sustainability of the Islamic financial system.
format Article
author Nazmi, Nor Asila
Hassan, Rusni
author_facet Nazmi, Nor Asila
Hassan, Rusni
author_sort Nazmi, Nor Asila
title Measuring shari’ah governance practices: the development of shari’ah governance practices index (SGPi) for Islamic financial institutions in Malaysia
title_short Measuring shari’ah governance practices: the development of shari’ah governance practices index (SGPi) for Islamic financial institutions in Malaysia
title_full Measuring shari’ah governance practices: the development of shari’ah governance practices index (SGPi) for Islamic financial institutions in Malaysia
title_fullStr Measuring shari’ah governance practices: the development of shari’ah governance practices index (SGPi) for Islamic financial institutions in Malaysia
title_full_unstemmed Measuring shari’ah governance practices: the development of shari’ah governance practices index (SGPi) for Islamic financial institutions in Malaysia
title_sort measuring shari’ah governance practices: the development of shari’ah governance practices index (sgpi) for islamic financial institutions in malaysia
publisher Semarak Ilmu Publishing
publishDate 2024
url http://irep.iium.edu.my/115805/1/115805_Measuring%20shari%E2%80%99ah%20governance%20practices.pdf
http://irep.iium.edu.my/115805/
https://semarakilmu.com.my/journals/index.php/sijmaf/article/view/9008
https://doi.org/10.37934/sijmaf.1.1.1428
_version_ 1816129645707264000
score 13.222552

Similar Items