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Shariah non-compliance treatment in Malaysian Islamic banks

Islamic finance in Malaysia has been growing rapidly in the past 30 years. In 2019, there is a total of 16 Islamic banks listed and supervised by Bank Negara Malaysia (BNM), with 5 out 16 banks are foreign entities. In view of the rivalry with the conventional banking sector, Islamic banks offer new...

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Main Authors: Hassan, Rusni, Omar, Hani Nabila
Format: Article
Language:English
Published: New Millennium Discoveries, UK 2019
Subjects:
HG3368 Islamic Banking and Finance
Online Access:http://irep.iium.edu.my/75397/1/75397%20-%20Shariah%20Non-Compliance%20Treatment%20in%20Malaysian%20Islamic%20Banks.pdf
http://irep.iium.edu.my/75397/
http://www.ijmar.org/current.html
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spelling my.iium.irep.753972020-02-21T02:44:32Z http://irep.iium.edu.my/75397/ Shariah non-compliance treatment in Malaysian Islamic banks Hassan, Rusni Omar, Hani Nabila HG3368 Islamic Banking and Finance Islamic finance in Malaysia has been growing rapidly in the past 30 years. In 2019, there is a total of 16 Islamic banks listed and supervised by Bank Negara Malaysia (BNM), with 5 out 16 banks are foreign entities. In view of the rivalry with the conventional banking sector, Islamic banks offer new innovative Islamic products and financial projects which may lead to greater risk of Shariah Non-compliance (SNC) exposure to the Islamic Financial Institutions (IFIs) in its effort to stay competitive. This paper attempts to explore the current practices of Islamic banks in treating (SNC) and the extent of compliance with BNM rules and guidelines, particularly BNM Operational Risk Integrated Online Network (ORION) requirement on SNC reporting event. This paper adopts a qualitative research method by conducting semi-structured in-depth interview with the Islamic banking professionals targeting five Islamic banks. Both primary and secondary sources are used for data collection. The finding shows that these Islamic Banks adhere to the BNM rules and requirements, with some minor differences in the implementation process. The findings would contribute positively in terms of enriching and contributing to the existing literature on the SNC practices by Islamic Banks whilst at the same time establishing the levels of compliance of the banks under investigation. New Millennium Discoveries, UK 2019-10 Article PeerReviewed application/pdf en http://irep.iium.edu.my/75397/1/75397%20-%20Shariah%20Non-Compliance%20Treatment%20in%20Malaysian%20Islamic%20Banks.pdf Hassan, Rusni and Omar, Hani Nabila (2019) Shariah non-compliance treatment in Malaysian Islamic banks. International Journal of Management and Applied Research (IJMAR), 6 (4). pp. 218-231. ISSN 2056-757X http://www.ijmar.org/current.html
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
Hassan, Rusni
Omar, Hani Nabila
Shariah non-compliance treatment in Malaysian Islamic banks
description Islamic finance in Malaysia has been growing rapidly in the past 30 years. In 2019, there is a total of 16 Islamic banks listed and supervised by Bank Negara Malaysia (BNM), with 5 out 16 banks are foreign entities. In view of the rivalry with the conventional banking sector, Islamic banks offer new innovative Islamic products and financial projects which may lead to greater risk of Shariah Non-compliance (SNC) exposure to the Islamic Financial Institutions (IFIs) in its effort to stay competitive. This paper attempts to explore the current practices of Islamic banks in treating (SNC) and the extent of compliance with BNM rules and guidelines, particularly BNM Operational Risk Integrated Online Network (ORION) requirement on SNC reporting event. This paper adopts a qualitative research method by conducting semi-structured in-depth interview with the Islamic banking professionals targeting five Islamic banks. Both primary and secondary sources are used for data collection. The finding shows that these Islamic Banks adhere to the BNM rules and requirements, with some minor differences in the implementation process. The findings would contribute positively in terms of enriching and contributing to the existing literature on the SNC practices by Islamic Banks whilst at the same time establishing the levels of compliance of the banks under investigation.
format Article
author Hassan, Rusni
Omar, Hani Nabila
author_facet Hassan, Rusni
Omar, Hani Nabila
author_sort Hassan, Rusni
title Shariah non-compliance treatment in Malaysian Islamic banks
title_short Shariah non-compliance treatment in Malaysian Islamic banks
title_full Shariah non-compliance treatment in Malaysian Islamic banks
title_fullStr Shariah non-compliance treatment in Malaysian Islamic banks
title_full_unstemmed Shariah non-compliance treatment in Malaysian Islamic banks
title_sort shariah non-compliance treatment in malaysian islamic banks
publisher New Millennium Discoveries, UK
publishDate 2019
url http://irep.iium.edu.my/75397/1/75397%20-%20Shariah%20Non-Compliance%20Treatment%20in%20Malaysian%20Islamic%20Banks.pdf
http://irep.iium.edu.my/75397/
http://www.ijmar.org/current.html
_version_ 1662753751891443712
score 13.211869

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