Md. Kausar Alam
BRAC University, BRAC Business School(BBS), Faculty Member
- University of South Asia, Business Administration, Faculty MemberUPM - Universiti Putra Malaysia, Marketing and Management, Graduate Studentadd
- Learning shariah governanceedit
Purpose The purpose of this study is to propose a centralized Shariah governance framework (CSGF) for the Islamic banks and Shariah governance in Bangladesh as such, the existence and practices of the Shariah governance framework (SGF)... more
Purpose The purpose of this study is to propose a centralized Shariah governance framework (CSGF) for the Islamic banks and Shariah governance in Bangladesh as such, the existence and practices of the Shariah governance framework (SGF) are decentralized and diversified. Design/methodology/approach The paper implements a qualitative case study approach to develop a CSGF for the Islamic banks in Bangladesh. The data has been collected from 17 respondents through semi-structured interviews with a combination of regulators, Shariah supervisory board members, Shariah department executives and Shariah experts from the central bank and Islamic banks in Bangladesh. Findings This study proposes a CSGF which is comprising two-tier Shariah supervisory boards (SSBs), i.e. institutional SSB and centralized Shariah supervisory board (CSSB) under the central bank to monitor the overall functions of SG. The study recommends the setting up of four departments under the central bank to enhance the functions of CSSB. Besides, the central bank can introduce Shariah rating, external Shariah audit and external Shariah review through Islamic rating agencies and Islamic Chartered Accountant Firms for transparency and quality compliance which are more desired from the public and other stakeholders. Research limitations/implications The study significantly contributed to the national and global regulatory bodies by providing a structural CSGF for the Islamic banks to perform their functions and activities smoothly. Practical implications The study outlines a CSGF for the Islamic banks in Bangladesh as the existing practices are diversified and decentralized. Therefore, this framework would be helpful for the central bank and Islamic banks in Bangladesh to promote unique practices of the SGF. Originality/value This is the first research that provides a structure of CSGF for Islamic banks in Bangladesh, while the central bank of Malaysia developed the first SGF. There is no study concerning the demographic figure of CSGF of Islamic banks in the entire literature.
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PurposeInventory is a crucial part of a systematic supply chain of a business. Small firms mostly neglect inventory management (IM) by accumulating excessive inventory for a time. The study aims to examine the IM practices of small and... more
PurposeInventory is a crucial part of a systematic supply chain of a business. Small firms mostly neglect inventory management (IM) by accumulating excessive inventory for a time. The study aims to examine the IM practices of small and medium enterprises (SMEs) in Bangladesh.Design/methodology/approachThe study applied a qualitative case study design. Data were collected from ten SME owners in Bangladesh. The study employed a purposive sampling technique to collect data. This study used semi-structured interviews to generate data. The NVivo software was used to analyze the data.FindingsThe findings show that most SME business owners collect raw materials from the local market. Along with the local sources, they collect raw materials from international markets. Some SME entrepreneurs collect raw materials throughout the country as they dealt with recycled products. Frequently, they used digital technologies and online media to manage raw materials. SME owners could not buy many raw m...
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PurposeIslamic crowdfunding, an alternative way to finance social projects, is a new development in Malaysia. Little is known about its operation. This study aims to explore the practice of Nusa Kapital, the first Islamic crowdfunding... more
PurposeIslamic crowdfunding, an alternative way to finance social projects, is a new development in Malaysia. Little is known about its operation. This study aims to explore the practice of Nusa Kapital, the first Islamic crowdfunding platform in Malaysia.Design/methodology/approachThis study adopted a descriptive approach. The data was collected through document analysis and interviews with two officials of Nusa Kapital. The data gathered was analyzed through the thematic analysis technique.FindingsThis research discovered that Nusa Kapital was established considering the financing needs of the growing number of small medium enterprises (SMEs) in Malaysia. It uses the murabahah concept to make financing arrangements for entrepreneurs. Murabahah is a debt-based concept where the investors, instead of giving cash to the entrepreneurs, purchase an asset and sell it to them at a cost-plus profit. The Securities Commission Malaysia (SCM) regulates the crowdfunding operation of Nusa Kapi...
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PurposeThe study aims to examine the independence and effectiveness of the Shariah department officers of the Islamic banks in Bangladesh as the Shariah supervisory board (SSB) provides the annual Shariah report and Shariah resolutions... more
PurposeThe study aims to examine the independence and effectiveness of the Shariah department officers of the Islamic banks in Bangladesh as the Shariah supervisory board (SSB) provides the annual Shariah report and Shariah resolutions based on the reports of the Shariah department officers.Design/methodology/approachThe study applied a qualitative case study to achieve the research objectives. Data were collected through face-to-face interviews with the regulators, Shariah supervisory boards, Shariah department executives, and experts from the central bank and Islamic banks of Bangladesh.FindingsThe study illustrates that Shariah department officers/Shariah officers in Bangladesh seem to lack independence and decision-making authority in accomplishing ex-post Shariah governance functions (i.e. Shariah audit, Shariah compliance and Shariah review) as well as ensuring Shariah compliance. The Shariah officers cannot work spontaneously on practical issues without any interference. The ...
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Purpose The purpose of this study is to propose a centralized Shariah governance framework (CSGF) for the Islamic banks and Shariah governance in Bangladesh as such, the existence and practices of the Shariah governance framework (SGF)... more
Purpose The purpose of this study is to propose a centralized Shariah governance framework (CSGF) for the Islamic banks and Shariah governance in Bangladesh as such, the existence and practices of the Shariah governance framework (SGF) are decentralized and diversified. Design/methodology/approach The paper implements a qualitative case study approach to develop a CSGF for the Islamic banks in Bangladesh. The data has been collected from 17 respondents through semi-structured interviews with a combination of regulators, Shariah supervisory board members, Shariah department executives and Shariah experts from the central bank and Islamic banks in Bangladesh. Findings This study proposes a CSGF which is comprising two-tier Shariah supervisory boards (SSBs), i.e. institutional SSB and centralized Shariah supervisory board (CSSB) under the central bank to monitor the overall functions of SG. The study recommends the setting up of four departments under the central bank to enhance the fu...
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The conflict between Russia and Ukraine has been causing knock-on effects worldwide. The supply and price of major commodity markets (oil, gas, platinum, gold, and silver) have been greatly impacted. Due to the ongoing conflict, financial... more
The conflict between Russia and Ukraine has been causing knock-on effects worldwide. The supply and price of major commodity markets (oil, gas, platinum, gold, and silver) have been greatly impacted. Due to the ongoing conflict, financial markets across the world have experienced a strong dynamic regarding commodities prices. This effect can be considered the biggest change since the occurrence of the financial crisis in the year 2008, which explicitly influenced the oil and gold markets. This study attempts to investigate the impacts of the Russian invasion crisis on the dynamic connectedness among five commodities and the G7 and BRIC (leading stock) markets. We have applied the time-varying parameter vector autoregressive (TVP-VAR) method, which reflects the way spillovers are shaped by various crises periods, and we found extreme connectedness among all commodities and markets (G7 and BRIC). The findings show that gold and silver (commodities) and the United States, Canada, China...
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PurposeSharīʿah Secretariat plays a significant role in assisting Sharīʿah Supervisory Boards (SSBs) in their role in achieving Sharīʿah compliance in Islamic banks (IBs). The key objective of the study is to develop a organizational... more
PurposeSharīʿah Secretariat plays a significant role in assisting Sharīʿah Supervisory Boards (SSBs) in their role in achieving Sharīʿah compliance in Islamic banks (IBs). The key objective of the study is to develop a organizational framework of the Sharīʿah Secretariat for the IBs in Bangladesh.Design/methodology/approachThe study applied qualitative case study research. The data have been collected from 17 respondents through semi-structured interviews from IBs and professional experts in Bangladesh.FindingsThis study proposes a full-time Sharīʿah Secretariat and several departments for further enhancement of the Sharīʿah functions in IBs in Bangladesh. The framework proposed in this study covers the formation, functions, composition, qualification, reporting line, independence, remuneration and terms of appointment of the Sharīʿah Secretariat to set a uniform benchmark for all IBs in Bangladesh. It is anticipated that the outcomes of this research will assist to further strength...
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Purpose - The study explores the existing Sharī‘ah audit process practices of Islamic banks in Bangladesh aiming at providing suggestions for improvements on the detected shortfalls in the relevant areas. Design/methodology/approach - It... more
Purpose - The study explores the existing Sharī‘ah audit process practices of Islamic banks in Bangladesh aiming at providing suggestions for improvements on the detected shortfalls in the relevant areas. Design/methodology/approach - It applied a qualitative method and data were collected through conducting the semi-structured interview in Bangladesh. Overall 17 respondents have been contacted for accomplishing the research objectives. Findings - The study found that since the obligation of Sharī‘ah compliance is the part and parcel of Islamic finance, to this date, no comprehensive Sharī‘ah audit manual is available for Islamic banks in Bangladesh, and as such the requirements of their Sharī‘ah non-compliance remain big question marks. Although Islamic banks maintain the Sharī‘ah audit practice, and their Sharī‘ah officers are found to be engaged in inspecting the necessary documents in this regard it only covers 10%-20% of their total Sharī‘ah compliance practice. Based on our findings, it is recommended that Sharī‘ah auditing tasks of Islamic banks should broadly cover up to 80% of their investment portfolios as is the case with the overall audit system both in conventional and Islamic finance. Implications - The findings of this research is expected to significantly contribute to all regulatory authorities concerned in Bangladesh and beyond which include the suggestions that Islamic banks should broaden their Sharī‘ah audits to 80% of their investments and other transactions. Also to apply Sharī‘ah audit software for furthering the monitoring of the functions. The study also pinpointed that in the current system Sharī‘ah auditors’ roles are somehow limited, for which they are unable to perform their responsibilities accurately and effectively. Originality/value – To our knowledge, perhaps this is the first research of its kind which seeks to qualitatively explores the current Sharī‘ah audit practices, and based on its findings it provides some practical suggestions for making the necessary developments of the present audit process of Islamic banks.
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PurposeThe study aims to investigate the reasons behind the growing diverse practices of Shariah governance (SG) among Islamic banks in Bangladesh.Design/methodology/approachData has been collected through a semi-structured interview... more
PurposeThe study aims to investigate the reasons behind the growing diverse practices of Shariah governance (SG) among Islamic banks in Bangladesh.Design/methodology/approachData has been collected through a semi-structured interview process from the concerned authorities (Shariah supervisory board members, Shariah department officers, central bank executives and banking professional experts) related to SG and Islamic banks in Bangladesh. The data has been analyzed by NVivo software.FindingsThe results of the study show that SG mechanisms are different due to the lack of unique comprehensive SG guidelines and the absence of a Centralized Shariah Supervisory Board (CSSB) under the Central Bank. The self-developed practices, the diversified opinions and viewpoints of the Board of Directors (BOD), banks' policies, business motivations and profit intention are also responsible for diversified SG practices. The diverse understandings and explanations of Shariah, Madhab (school of tho...
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This paper investigates the impact of goodwill on capital structure and how investors' education affects the relationship between goodwill and capital structure in developing and developed countries. This study covers both developing and... more
This paper investigates the impact of goodwill on capital structure and how investors' education affects the relationship between goodwill and capital structure in developing and developed countries. This study covers both developing and developed countries using a sample of 4912 and 4303 non-financial companies from 23 developing and 9 developed countries, respectively, over 9 years (2010–2018). By applying
panel data techniques, study shows that goodwill has a significant positive impact on the capital structure of developing and developed countries. Besides, investors' education moderates the relationship between goodwill and capital structure, especially in developed countries. Managers of the goodwill assets-based companies in developing
and developed countries can formulate their borrowing policy in the same
fashion as the managers of a tangible asset-based company do. Outcomes of this study will help investors/creditors in those countries to develop a clear view of the collateralization of goodwill. Policymakers in the developed countries will have a better idea about the role of investors' education in the financing of the companies.
panel data techniques, study shows that goodwill has a significant positive impact on the capital structure of developing and developed countries. Besides, investors' education moderates the relationship between goodwill and capital structure, especially in developed countries. Managers of the goodwill assets-based companies in developing
and developed countries can formulate their borrowing policy in the same
fashion as the managers of a tangible asset-based company do. Outcomes of this study will help investors/creditors in those countries to develop a clear view of the collateralization of goodwill. Policymakers in the developed countries will have a better idea about the role of investors' education in the financing of the companies.
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The study aims to critically review and explore the Grade Point Average (GPA) and Cumulative Grade Point Average (CGPA) in the education system of Bangladesh. Qualitative method is applied in this research, and data were collected through... more
The study aims to critically review and explore the Grade Point Average (GPA) and Cumulative Grade Point Average (CGPA) in the education system of Bangladesh. Qualitative method is applied in this research, and data were collected through document analysis as well as interviewing of some education specialists in Bangladesh. Interestingly, the GPA is practicing 5 scales in the secondary and higher secondary levels and 4 scales in the graduation level. The education boards in Bangladesh run as per the Ministry of Education criteria and follow the GPA in the secondary and higher secondary levels. But the universities of Bangladesh are following CGPA as per the benchmark set up by the government or University Grant Commission. Remarkably, this CGPA mark scale is not followed homogeneously in the private universities. Public universities follow a separate benchmark for grading the results, and the private universities follow a distinct grade standard set up by themselves. In this case, t...
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The multi-group analysis based on the Structural Equation Modelling (SEM) was used to test the moderation effects of gender in the relationships between Work Family Conflict (W to FC) and Job Satisfaction (JS)/Family Work Conflict (F to... more
The multi-group analysis based on the Structural Equation Modelling (SEM) was used to test the moderation effects of gender in the relationships between Work Family Conflict (W to FC) and Job Satisfaction (JS)/Family Work Conflict (F to WC) and Job Satisfaction (JS). Using convenience sampling technique, data was collected from 273 respondents who work as academicians in private universities in Bangladesh. The finding of this research is that gender doesn’t moderate the relationships between W to FC and JS/F to WC and JS. This study has added value to the Human Resource Management and Organizational Behaviour literature by determining the circumstances that influence both directions of W-FC on job satisfaction.
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PurposeThe main objective of the study is to ascertain the level of independence and the effectiveness of the Shariah Supervisory Board (SSB) members of Islamic banks in Bangladesh. This is because only SSB members are empowered to... more
PurposeThe main objective of the study is to ascertain the level of independence and the effectiveness of the Shariah Supervisory Board (SSB) members of Islamic banks in Bangladesh. This is because only SSB members are empowered to oversee and certify the overall business functions of Islamic banks.Design/methodology/approachThis paper implements qualitative case research approach to explore the research objective in the context of Bangladesh. We applied purposeful and snowball sampling tactics for selecting respondents. By using a semi-structured questionnaire and face-to-face interviews, we collect data from SSB members, central bank executives and experts in Islamic banking and Shariah governance.FindingsThe study finds that majority Islamic banks' SSB's positions are similar to the Board of Directors (BOD) of the banks. Next, this study finds that in recruiting/selecting SSB members, some banks do not follow the guidelines of the central bank. This study finds mixed evid...
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Purpose: This study intends to explore the impact of occupation and income on informal migrants in the face of COVID-19 induced lockdown in Bangladesh and their coping strategies to survive the pandemic situation... more
Purpose: This study intends to explore the impact of occupation and income on informal migrants in the face of COVID-19 induced lockdown in Bangladesh and their coping strategies to survive the pandemic situation Design/methodology/approach: The study adopted a qualitative research design in which four urban areas were chosen purposively from various parts of Dhaka city The authors conducted 21 semi-structured in-depth interviews, four FGDs and eight months over participant observation for achieving study objectives The four stages of data analysis used a thematic approach in the interpretive phenomenological analysis Findings: The results showed that respondents were massively affected due to loss of income and occupation in the period of induced lockdown Besides, most people lost their earning sources entirely in this amid pandemic which bound them starvation in the mealtime along with several dynamic complications The findings also revealed that they followed some surviving strat...
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The growing adoption of Artificial Intelligence (AI) has sparked ubiquitous concerns worldwide. Artificial intelligence can affect economic growth and employment. The influence is assumed to be substantial because the adoption of AI... more
The growing adoption of Artificial Intelligence (AI) has sparked ubiquitous concerns worldwide. Artificial intelligence can affect economic growth and employment. The influence is assumed to be substantial because the adoption of AI technology may lead to increased productivity, lower wages, prices, and labor substitution. Artificial intelligence can affect global economic growth with its widespread adoption and diffusion. We mathematically examined the effects of AI on economic growth, reiterating how AI is unique as a production factor. The models show that AI capital lowers capital prices, increases wages, and augments productivity. Besides, AI capital positively affects the labor share and vice versa, provided that AI and labor are complementary. We improved a task-based model to show AI raises both labor share and wages by generating new tasks. We also present the potential policy implications of AI adoption. We conclude AI can contribute to economic growth. Labor-abundant coun...
Purpose The purpose of this paper is to focus on conceptualizing the origin of legitimacy, the legitimation process and its trustworthiness toward the people, regulators, society and stakeholders. In achieving the purpose of the study, an... more
Purpose The purpose of this paper is to focus on conceptualizing the origin of legitimacy, the legitimation process and its trustworthiness toward the people, regulators, society and stakeholders. In achieving the purpose of the study, an inclusive research gap concerning the roles of the Shariah Supervisory Board (SSB) as a Shariah regulatory authority or an internal mechanism of Shariah Governance Framework (SGF) in the development and formation of Islamic financial institutions (IFIs) would also be addressed. Design/methodology/approach The paper implements an analytical approach to investigate the legitimation process of SSB, and its presence, significance, as well as credibility to the stakeholders. Findings This study proposes an additional authority of legitimacy, namely, SSB/Shariah regulatory authority, along with regulators, professionals and people. These could be derived from the internal mechanism of Shariah Governance (SG) practices of IFIs. The study also proposes ano...
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The purpose of this paper is to explore the question “Why does Shariah Governance Framework (SGF) important for Islamic banks?”,A semi-structured face-to-face personal interview is used to accomplish the research objectives. This study... more
The purpose of this paper is to explore the question “Why does Shariah Governance Framework (SGF) important for Islamic banks?”,A semi-structured face-to-face personal interview is used to accomplish the research objectives. This study has collected data from the concerned bodies related to Shariah Governance (SG) from the central bank and Islamic banks of Bangladesh.,This study states SG as a process of confirming Shariah compliance in the overall functions of the Islamic banks, while Shariah denotes some rules, regulations, guidelines, objectives and directions to enhance accurate functions and activities, which are solely based on Shariah principles. SGF is important for Islamic banks to implement Shariah principles, confirm Shariah compliance and monitor the functions of the banks. Besides, it is needed for a well, efficient, effective, profitable business and higher performance and, finally, to eliminate the confusion among the management, executives, conventional bankers and b...
The main objective of this article is to describe the logical reasons why a Centralized Shariah Governance Framework (CSGF) provided by the Central Bank of Bangladesh (Bangladesh Bank) is essential for the country’s Islamic banks. In... more
The main objective of this article is to describe the logical reasons why a Centralized Shariah Governance Framework (CSGF) provided by the Central Bank of Bangladesh (Bangladesh Bank) is essential for the country’s Islamic banks. In doing so, it identifies the major regulatory challenges (self-developed and disparate use of Shariah Governance (SG) practices) faced by Islamic banks in Bangladesh. It considers an analytical approach to explore the significance of a CSGF for Islamic banks in Bangladesh and examines the current diversified procedures of SG practices. This article reveals that the self-developed SG practices of Islamic banks in Bangladesh have created confusion and pessimism among the practitioners, bankers and even to the general people and regulators which is negatively affecting the overall image of Islamic banks. Such incongruent governance practices have led to inconsistencies in SG structures, implementation procedures, monitoring activities. In addition, this art...
The purpose of this paper is to explore the question “Why does Shariah Governance Framework (SGF) important for Islamic banks?”,A semi-structured face-to-face personal interview is used to accomplish the research objectives. This study... more
The purpose of this paper is to explore the question “Why does Shariah Governance Framework (SGF) important for Islamic banks?”,A semi-structured face-to-face personal interview is used to accomplish the research objectives. This study has collected data from the concerned bodies related to Shariah Governance (SG) from the central bank and Islamic banks of Bangladesh.,This study states SG as a process of confirming Shariah compliance in the overall functions of the Islamic banks, while Shariah denotes some rules, regulations, guidelines, objectives and directions to enhance accurate functions and activities, which are solely based on Shariah principles. SGF is important for Islamic banks to implement Shariah principles, confirm Shariah compliance and monitor the functions of the banks. Besides, it is needed for a well, efficient, effective, profitable business and higher performance and, finally, to eliminate the confusion among the management, executives, conventional bankers and b...
This chapter explores the Shariah Governance (SG) of Islamic banks in Bangladesh as compared to global SG practices. Applying semi-structured face-to-face interviews, this study finds that Bangladesh is not far behind the global SG... more
This chapter explores the Shariah Governance (SG) of Islamic banks in Bangladesh as compared to global SG practices. Applying semi-structured face-to-face interviews, this study finds that Bangladesh is not far behind the global SG system. Most of the countries have enacted Islamic banking regulations, but Bangladesh does not have any separate banking legislation for Islamic banks. Islamic banks are working on their own instead of centralized functioning under the regulations of the central bank. Islamic banks in Bangladesh are mainly dominated by the ‘buy and sell mode' which is diminishing the real sense of Islamic finance. Islamic banks are not practicing true Islamic banking because of the predetermined profit rate and violation of the Shariah principles. But the central bank has accepted it due to social demands and people's expectations. The corporate social responsibility functions are broader and more focused in Bangladesh as compared to global practices.
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PurposeThe study aims to explore the case study method with the formation of questions, data collection procedures and analysis, followed by how and on which position the saturation is achieved in developing a centralized Shariah... more
PurposeThe study aims to explore the case study method with the formation of questions, data collection procedures and analysis, followed by how and on which position the saturation is achieved in developing a centralized Shariah governance framework for Islamic banks in Bangladesh.Design/methodology/approachUsing purposive and snowball sampling procedures, data have been collected from 17 respondents who are working in the central bank and Islamic banks of Bangladesh through face-to-face and semi-structured interviews.FindingsThe study claims that researchers can form the research questions by using “what” question mark in qualitative research. Besides, the qualitative research and case study could explore the answers of “what” questions along with the “why” and “how” more broadly, descriptively and extensively about a phenomenon. Similarly, saturation can be considered attaining the ultimate point of data collection by the researchers without adding anything in the databank. Overa...
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Purpose The main aim of this research is to ascertain the expected duties and performed roles and functions of the Shariah supervisory boards (SSBs) of Islamic banks in Bangladesh. Design/methodology/approach A semistructured face-to-face... more
Purpose The main aim of this research is to ascertain the expected duties and performed roles and functions of the Shariah supervisory boards (SSBs) of Islamic banks in Bangladesh. Design/methodology/approach A semistructured face-to-face interview was applied to accomplish the research objectives. In total, data was collected from 17 respondents with a combination of regulators, SSBs, Shariah department executives and experts from the central bank and Islamic banks in Bangladesh. Findings This study finds that the expectations of Islamic banks toward SSB members are to provide opinions on Shariah issues, guidelines and decisions regarding the modern banking, practices and delivering of fatwas on the contemporary issues offered by the management to fulfill the demand of the numerous stakeholders. In addition, they can develop Shariah governance (SG) policies and implement those guidelines, approve and develop new products, observe and monitor banking functions, identify problems and...
Purpose The purpose of this study is to explore the practices of Shariah governance (SG) systems in terms of their guidelines, current operational procedures, internbal policies and structures and regulatory framework of Islamic banks in... more
Purpose The purpose of this study is to explore the practices of Shariah governance (SG) systems in terms of their guidelines, current operational procedures, internbal policies and structures and regulatory framework of Islamic banks in Bangladesh from the viewpoints of Shariah, Tawhidic approach/ontological approach and Shuratic process of Islamic corporate governance and institutional theory. Design/methodology/approach A semi-structured interview tactic has been applied to attain the objective. Overall, data has been collected from the regulators, Shariah supervisory board members, Shariah department executives and experts from the central bank and Islamic banks of Bangladesh. Findings The study finds that Islamic banks do not follow complete Shariah principles in all aspects of SG nor violate them fully in their overall functions due to less accountability, which contradicts the concept of the Tawhidi epistemological process of Islamic corporate governance. Islamic banks announ...
PurposeThe purpose of this paper is to examine the influences of Shariah governance (SG) mechanisms on Islamic banks' performance and Shariah compliance quality in the context of Bangladesh.Design/methodology/approachA semi-structured... more
PurposeThe purpose of this paper is to examine the influences of Shariah governance (SG) mechanisms on Islamic banks' performance and Shariah compliance quality in the context of Bangladesh.Design/methodology/approachA semi-structured personal interview tactic was applied to accomplish the research objectives. The data were collected from the regulators, Shariah supervisory boards, Shariah department executives and Shariah experts from the Central Bank (Bangladesh Bank) and Islamic banks in Bangladesh.FindingsThe study discovers that the quality of the Board of Directors (BODs), Shariah Supervisory Board (SSB), management and Shariah executives have both positive and negative influences on the Shariah compliance quality, image, goodwill and performance of Islamic banks' in Bangladesh. The compositions, formations and quality of SSB and Shariah officers positively influence the Islamic banks' fatwas, Shariah decisions, compliance quality and firm performance. The study al...
Purpose Prior studies on Islamic finance provide a limited linkage between organizational theory and the complex Shariah governance framework embraced by Islamic banks worldwide. This paper aims to show the relevance of the application of... more
Purpose Prior studies on Islamic finance provide a limited linkage between organizational theory and the complex Shariah governance framework embraced by Islamic banks worldwide. This paper aims to show the relevance of the application of “institutional theory” in the Shariah governance framework of Islamic banks. Design/methodology/approach This study applied library research to investigate the application of institutional theory in the Shariah governance framework of Islamic banks. The authors also critically reviewed prior empirical and review papers for accomplishing the research objectives. Findings Based on the critical review, the authors found that institutional theory is the most influential in progressing Shariah governance as it contributes toward the organizational image, helps to achieve religious legitimacy, and inspires a more robust regulatory environment. In addition, a well-designed Shariah governance framework is driven by institutional theory and that could assis...
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Purpose The purpose of this paper is to investigate the influence of board of directors (BODs) and management in the decision-making of Shariah supervisory board (SSB) and implementation of their decisions. Design/methodology/approach The... more
Purpose The purpose of this paper is to investigate the influence of board of directors (BODs) and management in the decision-making of Shariah supervisory board (SSB) and implementation of their decisions. Design/methodology/approach The paper implements qualitative case research to explore the influences of BODs and management in the context of Bangladesh. To accomplish the research objective, we collected data from the 17 respondents from the regulators, Shariah supervisory boards, Shariah department executives and Shariah experts from the central bank and Islamic banks of Bangladesh. Findings This study found that management of Islamic banks indirectly influences the practices and functions of SSB, their decision-making and other activities. However, from either ethical or moral ground, management cannot influence SSB; management does not have legitimate power to control over their activities. Sometimes the BODs and management use the SSB and Shariah executives as a showcase and...
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Purpose - The study explores the existing Sharī‘ah audit process practices of Islamic banks in Bangladesh aiming at providing suggestions for improvements on the detected shortfalls in the relevant areas. Design/methodology/approach - It... more
Purpose - The study explores the existing Sharī‘ah audit process practices of Islamic banks in Bangladesh aiming at providing suggestions for improvements on the detected shortfalls in the relevant areas. Design/methodology/approach - It applied a qualitative method and data were collected through conducting the semi-structured interview in Bangladesh. Overall 17 respondents have been contacted for accomplishing the research objectives. Findings - The study found that since the obligation of Sharī‘ah compliance is the part and parcel of Islamic finance, to this date, no comprehensive Sharī‘ah audit manual is available for Islamic banks in Bangladesh, and as such the requirements of their Sharī‘ah non-compliance remain big question marks. Although Islamic banks maintain the Sharī‘ah audit practice, and their Sharī‘ah officers are found to be engaged in inspecting the necessary documents in this regard it only covers 10%-20% of their total Sharī‘ah compliance practice. Based on our findings, it is recommended that Sharī‘ah auditing tasks of Islamic banks should broadly cover up to 80% of their investment portfolios as is the case with the overall audit system both in conventional and Islamic finance. Implications - The findings of this research is expected to significantly contribute to all regulatory authorities concerned in Bangladesh and beyond which include the suggestions that Islamic banks should broaden their Sharī‘ah audits to 80% of their investments and other transactions. Also to apply Sharī‘ah audit software for furthering the monitoring of the functions. The study also pinpointed that in the current system Sharī‘ah auditors’ roles are somehow limited, for which they are unable to perform their responsibilities accurately and effectively. Originality/value – To our knowledge, perhaps this is the first research of its kind which seeks to qualitatively explores the current Sharī‘ah audit practices, and based on its findings it provides some practical suggestions for making the necessary developments of the present audit process of Islamic banks.
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The study aims to explore the problems of the existing Shariah Governance Framework (SGF) and its concerned authorities in the context of Bangladesh. Thus, according to responses from 17 respondents, this study outlines that Bangladesh... more
The study aims to explore the problems of the existing Shariah Governance Framework (SGF) and its concerned authorities in the context of Bangladesh. Thus, according to responses from 17 respondents, this study outlines that Bangladesh has an absence of a shortage of experts, experienced, knowledgeable, and qualified Shariah people at all levels (i.e., the central bank, Islamic banks, Shariah Supervisory Boards (SSBs), and regulators). Therefore, Bangladesh does not have a separate Islamic banking act, Shariah audit firm, Shariah index institutions, and comprehensive SGF. The existing guideline has a limitation concerning its comprehensiveness, accountability, responsibility, and structure of SSBs. Islamic banks do not follow the instruction of the central bank in the formation of SSBs. As a result, there is an absence of competent and qualified SSB, which also results in the functions of Shariah departments as well as Shariah applications. Usually, the Board of Directors (BOD), management, executives, customers, and the public also have the conceptual gap about Islamic banks, SGF, and banking system compared to the regular prayers, faith, and belief. Concisely, Bangladesh requisites a comprehensive SGF, Islamic banking act, a standard accounting system, and a robust Shariah audit system for the overall development of Islamic banks and SGF.
This paper aims to explore the current practices and problems in the Shariah governance framework of Islamic insurance in Bangladesh. The study reveals that the governance system of Islamic insurance companies in Bangladesh is largely... more
This paper aims to explore the current practices and problems in the Shariah governance framework of Islamic insurance in Bangladesh. The study reveals that the governance system of Islamic insurance companies in Bangladesh is largely based on voluntary initiatives by itself and there is an absence of full-fledged Shariah governance framework. All Islamic insurance companies in Bangladesh have their own SSB who performs the Shariah audits and review activities. Based on the critical review, it provides some suggestions for the improvement of the Shariah governance framework of Islamic insurance. In order to improve the Shariah governance system of Islamic insurance companies, Bangladesh government should enact a law for its operations and rulings. Moreover, the Insurance Development and Regulatory Authority of Bangladesh (IDRA) should improve its guidelines for Islamic insurance operations to comply with Shariah principles and may recognize the Central Shariah Council for Islamic Insurance of Bangladesh (CSCIIB) so that, they can supervise and monitor the overall activities of Islamic insurance companies in Bangladesh.
Keywords: Islamic Insurance, Shariah Governance, Shariah Governance Framework.
Keywords: Islamic Insurance, Shariah Governance, Shariah Governance Framework.
Construction industry in Malaysia is facing a serious issue of construction delay causing a significant amount of time over run and cost overrun. A vibrant construction industry in a developing country, that mobilizes human and local... more
Construction industry in Malaysia is facing a serious issue of construction delay causing a significant amount of time over run and cost overrun. A vibrant construction industry in a developing country, that mobilizes human and local material resources in the development and maintenance of buildings, housing and physical infrastructure, is an important means to promote increased local employment and accelerate economic growth. (Anthopoulos, 2017). Malaysian economy has to perform efficiently and to play effective role in making true the dream of developed nation status. Delay affects every party in the construction project in a different way as for the owner or the contractor it affects differently but not the same as the consultant who is considered the least affected party of all (Shehzad 2019). Many small and large size contractors in recent years have voiced their concerns over the difficulty to overcome delay problems, and the main reason is because the contractors have no ability to identify the important causes of delay occurring during the construction process. (Aziz & abdel-Hakim 2016). According to Aziz et al (2016). Research on management consultancy usually emphasizes the role and perspective of the consultants. Whilst important, consultants are only one element in a dynamic relationship involving both consultants and their clients. The remaining factors on the list were land acquisition, award of project to lowest bidder, equipment breakdowns, poor site arrangement, management and supervision, unexpected ground condition and terrain, low quality of the contractor human resources, late progress payments, and low productivity of labour. Recommendations to manage the delay factors were presented. (Santoso & Soeng 2016). Where more than one event impacts on the completion date at the same time, but where not all of those events would entitle the contractor to claim an extension of time or loss and expense.
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This empirical paper investigates the role of perceived usefulness (PU), perceived ease of use (PEU), social influence (SI), service trust (ST), user innovativeness (UI), and technological optimism (TO) on intention to adopt Fintech... more
This empirical paper investigates the role of perceived usefulness (PU), perceived ease of use (PEU), social influence (SI), service trust (ST), user innovativeness (UI), and technological optimism (TO) on intention to adopt Fintech (ITAF) by Malaysian millennials with the moderation of perceived Covid-19 risk (PCR). Theory of planned behaviour, technology adoption model, and social cognitive theory are applied to amalgamate the concept. Data of 313 millennials who are in university were collected usinga convenient sampling technique and a structured questionnaire. The data was analysed in partial least squares structural equation modeling (PLS-SEM). The result shows that PU, SI, ST, and TO influence ITAF significantly. Surprisingly, PEU and UI did not evidence significant impact. Moreover, PCR did not show moderating influence. This study can provide important insights for the Fintech users, industry players, policymakers, and government to comprehend the concept so that the adoption of Fintech can be fostered towards achieving a smart and digital Malaysia.