Suchergebnisse

A systematic study of the process of developing Islamic financial products for banks. Islamic banking began in the 1970s with the aim of providing financial services compatible with Islamic law. Driven by market forces it has grown rapidly in Muslim countries and in international financial sectors. It is projected to grow at an annual rate of 15-20% and a key factor determining this future growth is the availability of new products that will satisfy the needs of various segments of society. While other texts discuss the basic principles and contracts used in Islamic banking and finance, few discuss how these can be used to develop financial products. This book fills that gap, starting with the basic principles that form the building blocks of contemporary Islamic financial products and then discussing the more intricate issues relating to product development processes

PurposeThis study aims to investigate the relationship between corporate governance andShariahnon-compliant risk (SNCR) that is unique for Islamic banks. The study examines the roles ofShariahcommittee along with the board of directors in mitigating SNCR.Design/methodology/approachThe paper empirically investigates the implications of characteristics of board of directors andShariahcommittee on the SNCR by using a sample of 29 full-fledge Islamic banks from Malaysia and Indonesia over the period 2007-2017. All data is hand collected from the Islamic banks' annual reports with the exception of country-level data collected from the World Bank database.FindingsThe results show that banks with a smaller board size and higher proportion of independent board members are likely to have lower SNCR. The findings also indicate that the financial expertise and higher frequency ofShariahcommittee meetings reduces the SNCR. Collectively, the analysis shows that banks with strong corporate governance environments reduce SNCR.Practical implicationsThe findings of the study shed light on the relationship between corporate governance practice,Shariahcommittee characteristics and SNCR. The results can be used by different stakeholders such as policymakers, boards of directors and senior management of Islamic banks to mitigate SNCR.Originality/valueThis study extends the literature on corporate governance and risk-taking by including additional dimensions of governance and risk type. The corporate governance mechanism at the board level is complemented by including theShariahcommittee characteristics and SNCR which is relevant to Islamic financial institutions is examined.