Ali Obaid, Murad Ayesh and Saleh, Abdulmajid Obaid Hasan and Al-Shaghdari, Fahd Mohammed Obad (2026) Bridging governance gaps in Islamic banking: Palestine and Malaysia compared. Journal of King Abdulaziz University: Islamic Economics, 39 (1). pp. 63-77. ISSN 1018-7383 E-ISSN 1658-4244
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Abstract
This study focuses on the most important governance issues that Islamic banking institutions in Palestine are experiencing and discusses what can be learnt from the Malaysian experience in helping to better govern Islamic banking institutions to improve governance efficiency, adherence to SharīÊ¿ah and regulatory oversight. Using a qualitative approach, research is based on the data collected from interviews with experts, document analysis and comparative case studies of both jurisdictions. The results indicate that lack of a centralised authority to monitor them, lack of professional expertise and the inadequate specified internal frameworks greatly constrain the effectiveness of governance in Palestinian Islamic banks. Slowness in digital transformation, lack of cybersecurity policies are also contributing to these deficiencies. Conversely Malaysia has a comprehensive governance system that is based on centralized oversight and institutionalized development that can provide a realistic point of reference in regard to reform. The study makes recommendations to create a single unified national governance authority, improve professional training in Islamic financial regulation and to promote more independence of supervisory boards. It further stresses the importance of intensive digital governance and cybersecurity systems that will enable FinTech integration and institutional resilience
| Item Type: | Article (Journal) |
|---|---|
| Uncontrolled Keywords: | Islamic banking governance, regulatory oversight, Shar¯ ıah adherence, Palestine, Malaysia |
| Subjects: | BPH Islamic Economics BPK Islamic law. Shari'ah. Fiqh |
| Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): | Institute of Islamic Banking & Finance (IIiBF) |
| Depositing User: | Dr Abdulmajid Obaid Hasan Saleh |
| Date Deposited: | 14 Apr 2026 14:57 |
| Last Modified: | 14 Apr 2026 14:57 |
| Queue Number: | 2026-04-Q2808 |
| URI: | http://irep.iium.edu.my/id/eprint/128276 |
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