Measuring the performance of Islamic banks using maqāsid based model

Mohammed, Mustafa Omar and Tarique, Kazi Md and Islam, Rafikul (2015) Measuring the performance of Islamic banks using maqāsid based model. Intellectual Discourse, 23. pp. 401-424. ISSN 2289-5639 (O), 0128-4878 (P)

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Abstract

The vision and mission of Islamic banks were supposed to reflect the adherence of their activities and aspiration to Maqāṣid al-Sharī‘ah. However, there are contentions that Islamic banks have been converging towards conventional banking system. Efforts have been expended to reverse the tide and harmonise Islamic banking to its Sharī‘ah objectives. Hitherto,the existing conventional yardsticks have failed to measure the impact of the harmonisation exercise on Islamic banks’ performance. Therefore, using maqāṣid based yardstick to measure the performance of Islamic banks becomes imperative. This study has made use of al-Imām al-Ghazālī’s theory of Maqāṣid al-Sharī‘ah and Ibn ‘Āshūr’s reinterpretation, adopting content analysis and Sekaran (2000) behavioral science methods to develop a Maqāṣid Based Performance Evaluation Model (MPEM) to measure the performance of Islamic banks. Experts’ opinions have validated the model and its acceptability. Suggestions are provided to policy makers and future research. Keywords: Harmonisation; Islamic banks; Maqāṣid al-Sharī‘ah; performance evaluation; Sharī‘ah.

Item Type:	Article (Journal)
Additional Information:	1957/47057
Uncontrolled Keywords:	harmonisation; islamic banks; maqāṣid al-Sharī‘ah; performance evaluation
Subjects:	H Social Sciences > HB Economic Theory > HB131 Methodology.Mathematical economics. Quantitative methods H Social Sciences > HB Economic Theory > HB846 Welfare theory H Social Sciences > HG Finance > HG1501 Banking
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User:	Dr. Mustafa Omar Mohammed Banki
Date Deposited:	11 Jan 2016 09:15
Last Modified:	17 Apr 2016 23:00
URI:	http://irep.iium.edu.my/id/eprint/47057

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