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Social responsibilities of Islamic banks case study of bank Islam Malaysia Bhd & Bank Muamalat Malaysia Bhd

Musa, Muhammad Adli (2016) Social responsibilities of Islamic banks case study of bank Islam Malaysia Bhd & Bank Muamalat Malaysia Bhd. In: 11th International Conference on Islamic Economics and Finance (ICIEF), 11th-13th October 2016, The Royale Chulan Kuala Lumpur, Malaysia. (Unpublished)

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It is claimed that the difference between Islamic and conventional finance is that the former has to preserve certain social objectives, while the latter need not be concerned with the moral implications of their business ventures. The Islamic Financial Services Board (IFSB) suggests that sharīʿah compliance is manifested in the ability of Islamic financial institutions (IFIs) not only to demonstrate that their operations are governed by an effective system of sharīʿah governance but also that they conduct their activities in a socially responsible manner. This paper seeks to establish the social responsibilities of IFIs and explore the extent to which two full-fledged Malaysian Islamic banks, Bank Islam Malaysia Bhd (BIMB) and Bank Muamalat Malaysia Bhd (BMMB), translate their social responsibility commitments into practice. This is achieved by analysing their annual reports and annual financial statements for a period of six years (2010-2015). Generally, the banks are committed to playing a social role by providing support to various organisations that provide benefits to society and by participating in government socially-oriented activities. Nonetheless, the percentage of financing provided for sectors deemed beneficial for society is relatively small and the portion of financing provided to small and medium enterprises generally declined over the years.

Item Type: Conference or Workshop Item (Plenary Papers)
Additional Information: 7412/60972
Uncontrolled Keywords: Corporate Social Responsibility, Islamic Banking, Islamic Finance
Subjects: H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Islamic Revealed Knowledge and Human Sciences
Depositing User: Mr Muhammad Adli Musa
Date Deposited: 24 Jan 2018 14:12
Last Modified: 12 Feb 2018 09:16
URI: http://irep.iium.edu.my/id/eprint/60972

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