Use this URL to cite or link to this record in EThOS: http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.715433
Title: The application of corporate and Sharī'ah governance in Islamic financial institutions : a case study from Malaysia
Author: Jibriel, Mohammed Gaali
Awarding Body: University of Aberdeen
Current Institution: University of Aberdeen
Date of Award: 2015
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Abstract:
Islamic finance has extended the debates on corporate governance beyond the traditional stockholder-stakeholder models to a Sharī'ah governance (SG) perspectives. Sharī'ah governance issues dominate the agenda of Sharī'ah compliance in institutions offering Islamic financial services. These institutions profess to apply principles and precepts of the Sharī'ah to ensure equitable satisfaction of stakeholder interest in their products and services, beyond maximisation of shareholder value. As subset of the opaque industry of banking and finance, Islamic banks and financial institutions shroud their SG practices in secrecy. Extant academic research on SG has mainly applied surveys using traditional deductive models of explanation, based on statistical generalizations, to examine the state of SG practices and the disclosure of Sharī'ah committee reports and Sharī'ah concepts in annual reports and websites. There is a dearth of literature on the Sharī'ah governance process itself. Meanwhile, various governments and jurisdictions have approached the issue of SG in diverse ways, ranging from lukewarm attitudes SG to regulatory-based SG. To date, countries are classified in terms of their approach to SG from regulatory perspectives into five: a 'passive approach', a 'minimalist approach', a 'reactive approach', an 'interventionist approach' and a 'proactive approach'. Malaysia applies the proactive approach to SG, where the regulator institutes a comprehensive SG framework to strengthen Sharī'ah compliance in Islamic financial Institutions (IFIs). The common law country also operates a dual banking system - conventional and Islamic. And it is considered to have the most advanced and conducive legislative and infrastructural environment for Islamic finance globally. This thesis attempts to contribute to our understanding of SG within the broader framework of corporate governance in IFIs. The thesis explores the relationship between corporate and Sharī'ah governance and product operations of a bank in Malaysia that adopts a unique approach to providing Islamic and conventional banking products and services concurrently, known as the Dual Banking Leveraged Model (DBLM). With this model, the Islamic franchise leverages on the infrastructure and human resources of the holding company to operate an Islamic banking business. Given the dearth of literature on this model, the study draws on Scapens' (1990) version of holistic case study and Dubois and Gadde's (2002) 'Systematic combining: an abductive approach to case study research', to conduct an in-depth case study using multiple sources: observation, information from websites, annual reports, financial statements, and primary data via interviews with different stakeholders of the bank (the board, Sharī'ah committee, management and staff) to gather evidence on the application of corporate and Sharī'ah governance in the operations of CIMB Islamic.
Supervisor: Not available Sponsor: Al-Maktoum Foundation
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID: uk.bl.ethos.715433  DOI: Not available
Keywords: Banks and banking
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