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Relevance of shari’ah governance in driving performance of Islamic Banks during the financial crisis: international evidence

This study aims to examine the impact of Shari’ah governance mechanism on the performance of Islamic banks (IBs) during the financial crisis of 2008. Data were collected from 66 IBs over 18 countries covering the period of 2007–2015 and analyzed using the System-GMM estimator. The findings indicate...

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Main Authors: Nomran, Naji Mansour, Haron, Razali
Format: Book Chapter
Language:English
Published: IntechOpen 2020
Subjects:
BPH Islamic Economics
HG3368 Islamic Banking and Finance
Online Access:http://irep.iium.edu.my/83762/1/83762_Relevance%20of%20shari%E2%80%99ah%20governance.pdf
http://irep.iium.edu.my/83762/
https://www.intechopen.com/online-first/relevance-of-shari-ah-governance-in-driving-performance-of-islamic-banks-during-the-financial-crisis
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spelling my.iium.irep.837622020-10-22T02:43:59Z http://irep.iium.edu.my/83762/ Relevance of shari’ah governance in driving performance of Islamic Banks during the financial crisis: international evidence Nomran, Naji Mansour Haron, Razali BPH Islamic Economics HG3368 Islamic Banking and Finance This study aims to examine the impact of Shari’ah governance mechanism on the performance of Islamic banks (IBs) during the financial crisis of 2008. Data were collected from 66 IBs over 18 countries covering the period of 2007–2015 and analyzed using the System-GMM estimator. The findings indicate that an increase in SSB effectiveness increases IBs’ performance even during the crisis periods. A possible justification for this positive effect is related to the SG structure of IBs that allows them to undertake higher risks to achieve a high efficiency level. For this, the IBs, policymakers and practitioners should consider these findings when aiming to improve SG practices in the Islamic banking industry, which in turn may help in protecting IBs during crisis and non-crisis periods. More specifically, they should give due importance to SSB (size, cross-membership, educational qualification, reputation and expertise) in enhancing the performance of IBs during the crisis and non-crisis periods. This study provides additional evidence on how IBs can sustain their performance during either crisis or non-crisis periods through adopting appropriate SG structure. However, the study only focuses on a small sample of 66 IBs due to lack of the data. IntechOpen Haron, Razali Md Husin, Maizaitulaidawati 2020-05-11 Book Chapter PeerReviewed application/pdf en http://irep.iium.edu.my/83762/1/83762_Relevance%20of%20shari%E2%80%99ah%20governance.pdf Nomran, Naji Mansour and Haron, Razali (2020) Relevance of shari’ah governance in driving performance of Islamic Banks during the financial crisis: international evidence. In: Banking and Finance. IntechOpen, pp. 1-13. (In Press) https://www.intechopen.com/online-first/relevance-of-shari-ah-governance-in-driving-performance-of-islamic-banks-during-the-financial-crisis 10.5772/intechopen.92368
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 BPH Islamic Economics
HG3368 Islamic Banking and Finance
spellingShingle BPH Islamic Economics
HG3368 Islamic Banking and Finance
Nomran, Naji Mansour
Haron, Razali
Relevance of shari’ah governance in driving performance of Islamic Banks during the financial crisis: international evidence
description This study aims to examine the impact of Shari’ah governance mechanism on the performance of Islamic banks (IBs) during the financial crisis of 2008. Data were collected from 66 IBs over 18 countries covering the period of 2007–2015 and analyzed using the System-GMM estimator. The findings indicate that an increase in SSB effectiveness increases IBs’ performance even during the crisis periods. A possible justification for this positive effect is related to the SG structure of IBs that allows them to undertake higher risks to achieve a high efficiency level. For this, the IBs, policymakers and practitioners should consider these findings when aiming to improve SG practices in the Islamic banking industry, which in turn may help in protecting IBs during crisis and non-crisis periods. More specifically, they should give due importance to SSB (size, cross-membership, educational qualification, reputation and expertise) in enhancing the performance of IBs during the crisis and non-crisis periods. This study provides additional evidence on how IBs can sustain their performance during either crisis or non-crisis periods through adopting appropriate SG structure. However, the study only focuses on a small sample of 66 IBs due to lack of the data.
author2 Haron, Razali
author_facet Haron, Razali
Nomran, Naji Mansour
Haron, Razali
format Book Chapter
author Nomran, Naji Mansour
Haron, Razali
author_sort Nomran, Naji Mansour
title Relevance of shari’ah governance in driving performance of Islamic Banks during the financial crisis: international evidence
title_short Relevance of shari’ah governance in driving performance of Islamic Banks during the financial crisis: international evidence
title_full Relevance of shari’ah governance in driving performance of Islamic Banks during the financial crisis: international evidence
title_fullStr Relevance of shari’ah governance in driving performance of Islamic Banks during the financial crisis: international evidence
title_full_unstemmed Relevance of shari’ah governance in driving performance of Islamic Banks during the financial crisis: international evidence
title_sort relevance of shari’ah governance in driving performance of islamic banks during the financial crisis: international evidence
publisher IntechOpen
publishDate 2020
url http://irep.iium.edu.my/83762/1/83762_Relevance%20of%20shari%E2%80%99ah%20governance.pdf
http://irep.iium.edu.my/83762/
https://www.intechopen.com/online-first/relevance-of-shari-ah-governance-in-driving-performance-of-islamic-banks-during-the-financial-crisis
_version_ 1681489304293998592
score 13.211869

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