Performance direction towards performance achievement: case on local Islamic banks in Malaysia
Performance of a company is important for identifying its survival ranking and for its future direction,improvement and development strategy. Bank performance has conventionally been measured using financial ratios and several quantitative indicators, which appraise its financial strength. The same...
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IACSIT Press
2015
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| Online Access: | http://irep.iium.edu.my/42233/ http://irep.iium.edu.my/42233/ http://irep.iium.edu.my/42233/ http://irep.iium.edu.my/42233/1/Norazidah.MOM..pdf |
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iium-422332016-10-25T03:40:30Z http://irep.iium.edu.my/42233/ Performance direction towards performance achievement: case on local Islamic banks in Malaysia Shamsudin, Norazidah Mohamed, Mustafa Omar HG1501 Banking Performance of a company is important for identifying its survival ranking and for its future direction,improvement and development strategy. Bank performance has conventionally been measured using financial ratios and several quantitative indicators, which appraise its financial strength. The same yardstick is being used by Islamic banks to measure their performance. This practice gives rise to the question whether Islamic banks appear to be focusing on Maqasid al-Shari'ah in their achievements or they share the same primary intention of conventional commercial banks, which strive for maximizing shareholders’ wealth. Scholars have raised concern that Islamic banks seem to be replicating the conventional banking system and this is creating a widening gap between the theory and practice of Islamic banking. Hence, this study has used a sample of 18 banks in Malaysia to critically review the organization’s vision and mission statements based on Maqasid al-Shari'ah by embracing content analysis and behavioral science operationalization method. The results show that the majority of Islamic banks have focused on the concept of establishing justice with emphasis on the elimination of negative elements that breed injustice, whereas conventional banks have put emphasis on profitability of the bank,categorized under the maslahah concept. Since there is different focus between the conventional and Islamic banks, there is a need for Islamic banks to evaluate their performance within their own framework and using their own criteria. Index Terms—Performance, Islamic bank, Islamic economy, mission, behavior. IACSIT Press 2015-09 Article PeerReviewed application/pdf en http://irep.iium.edu.my/42233/1/Norazidah.MOM..pdf Shamsudin, Norazidah and Mohamed, Mustafa Omar (2015) Performance direction towards performance achievement: case on local Islamic banks in Malaysia. Journal of Economics, Business and Management , 3 (9). pp. 889-893. ISSN 2301-3567 http://www.joebm.com/index.php?m=content&c=index&a=show&catid=50&id=611 10.7763/JOEBM.2015.V3.303 |
| repository_type |
Digital Repository |
| institution_category |
Local University |
| institution |
International Islamic University Malaysia |
| building |
IIUM Repository |
| collection |
Online Access |
| language |
English |
| topic |
HG1501 Banking |
| spellingShingle |
HG1501 Banking Shamsudin, Norazidah Mohamed, Mustafa Omar Performance direction towards performance achievement: case on local Islamic banks in Malaysia |
| description |
Performance of a company is important for
identifying its survival ranking and for its future direction,improvement and development strategy. Bank performance has conventionally been measured using financial ratios and several quantitative indicators, which appraise its financial strength. The same yardstick is being used by Islamic banks to measure their performance. This practice gives rise to the question whether Islamic banks appear to be focusing on Maqasid al-Shari'ah in their achievements or they share the same primary intention of conventional commercial banks, which strive for maximizing shareholders’ wealth. Scholars have raised concern that Islamic banks seem to be replicating the conventional banking system and this is creating a widening gap between the theory and practice of Islamic banking. Hence, this study has used a sample of 18 banks in Malaysia to critically review the organization’s vision and mission statements based on Maqasid al-Shari'ah by embracing content analysis and behavioral science operationalization method. The results show that the majority of Islamic banks have focused on the concept of establishing justice with emphasis on the elimination of negative elements that breed injustice, whereas conventional banks have put emphasis on profitability of the bank,categorized under the maslahah concept. Since there is different focus between the conventional and Islamic banks, there is a need for Islamic banks to evaluate their performance within their own framework and using their own criteria.
Index Terms—Performance, Islamic bank, Islamic economy,
mission, behavior. |
| format |
Article |
| author |
Shamsudin, Norazidah Mohamed, Mustafa Omar |
| author_facet |
Shamsudin, Norazidah Mohamed, Mustafa Omar |
| author_sort |
Shamsudin, Norazidah |
| title |
Performance direction towards performance achievement:
case on local Islamic banks in Malaysia |
| title_short |
Performance direction towards performance achievement:
case on local Islamic banks in Malaysia |
| title_full |
Performance direction towards performance achievement:
case on local Islamic banks in Malaysia |
| title_fullStr |
Performance direction towards performance achievement:
case on local Islamic banks in Malaysia |
| title_full_unstemmed |
Performance direction towards performance achievement:
case on local Islamic banks in Malaysia |
| title_sort |
performance direction towards performance achievement:
case on local islamic banks in malaysia |
| publisher |
IACSIT Press |
| publishDate |
2015 |
| url |
http://irep.iium.edu.my/42233/ http://irep.iium.edu.my/42233/ http://irep.iium.edu.my/42233/ http://irep.iium.edu.my/42233/1/Norazidah.MOM..pdf |
| first_indexed |
2023-09-18T21:00:15Z |
| last_indexed |
2023-09-18T21:00:15Z |
| _version_ |
1777410575351939072 |