Shari’ah Compliance as a Matter for Financial Performance

Md. Harun Ur Rashid, Hafij Ullah, Faruk Bhuiyan

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

Islamic banks must comply with the Shari’ah rulings fully as it is the foundation of Islamic banks. However, the level of Shari’ah compliance is not the same among the Islamic banks. Similarly, despite performing well, the financial performances of Islamic banks differ from each other. Therefore, the chapter explores the association between financial performance and Shari’ah compliance. The chapter used both the primary and secondary data. The primary data was collected through surveying 300 bank executives from six full-fledged Islamic banks operated in Bangladesh with a structured questionnaire on Shari’ah compliance, whereas information on financial performance were extracted from the annual reports of the sample banks. Descriptive statistics and regression analysis were used to analyze the data and conclude the findings. The findings show that Shari’ah compliance has a positive and significant impact on financial performance with respect to the total liabilities and total assets.
Original languageEnglish
Title of host publicationHandbook of Research on Theory and Practice of Global Islamic Finance
EditorsAbdul Rafay
PublisherIGI Publishing
Chapter20
Pages355-371
Number of pages17
ISBN (Electronic)9781799802204
ISBN (Print)9781799802181
DOIs
Publication statusPublished - 22 Jan 2020

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    Rashid, M. H. U., Ullah, H., & Bhuiyan, F. (2020). Shari’ah Compliance as a Matter for Financial Performance. In A. Rafay (Ed.), Handbook of Research on Theory and Practice of Global Islamic Finance (pp. 355-371). IGI Publishing. https://doi.org/10.4018/978-1-7998-0218-1.ch020