Shariah non-compliance treatment in Malaysian Islamic banks

Islamic finance in Malaysia has been growing rapidly in the past 30 years. In 2019, there is a total of 16 Islamic banks listed and supervised by Bank Negara Malaysia (BNM), with 5 out 16 banks are foreign entities. In view of the rivalry with the conventional banking sector, Islamic banks offer new...

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Main Authors:	Hassan, Rusni, Omar, Hani Nabila
Format:	Article
Language:	English
Published:	New Millennium Discoveries, UK 2019
Subjects:	HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/75397/ http://irep.iium.edu.my/75397/ http://irep.iium.edu.my/75397/1/75397%20-%20Shariah%20Non-Compliance%20Treatment%20in%20Malaysian%20Islamic%20Banks.pdf

id	iium-75397
recordtype	eprints
spelling	iium-753972020-02-21T02:44:32Z http://irep.iium.edu.my/75397/ Shariah non-compliance treatment in Malaysian Islamic banks Hassan, Rusni Omar, Hani Nabila HG3368 Islamic Banking and Finance Islamic finance in Malaysia has been growing rapidly in the past 30 years. In 2019, there is a total of 16 Islamic banks listed and supervised by Bank Negara Malaysia (BNM), with 5 out 16 banks are foreign entities. In view of the rivalry with the conventional banking sector, Islamic banks offer new innovative Islamic products and financial projects which may lead to greater risk of Shariah Non-compliance (SNC) exposure to the Islamic Financial Institutions (IFIs) in its effort to stay competitive. This paper attempts to explore the current practices of Islamic banks in treating (SNC) and the extent of compliance with BNM rules and guidelines, particularly BNM Operational Risk Integrated Online Network (ORION) requirement on SNC reporting event. This paper adopts a qualitative research method by conducting semi-structured in-depth interview with the Islamic banking professionals targeting five Islamic banks. Both primary and secondary sources are used for data collection. The finding shows that these Islamic Banks adhere to the BNM rules and requirements, with some minor differences in the implementation process. The findings would contribute positively in terms of enriching and contributing to the existing literature on the SNC practices by Islamic Banks whilst at the same time establishing the levels of compliance of the banks under investigation. New Millennium Discoveries, UK 2019-10 Article PeerReviewed application/pdf en http://irep.iium.edu.my/75397/1/75397%20-%20Shariah%20Non-Compliance%20Treatment%20in%20Malaysian%20Islamic%20Banks.pdf Hassan, Rusni and Omar, Hani Nabila (2019) Shariah non-compliance treatment in Malaysian Islamic banks. International Journal of Management and Applied Research (IJMAR), 6 (4). pp. 218-231. ISSN 2056-757X http://www.ijmar.org/current.html
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG3368 Islamic Banking and Finance
spellingShingle	HG3368 Islamic Banking and Finance Hassan, Rusni Omar, Hani Nabila Shariah non-compliance treatment in Malaysian Islamic banks
description	Islamic finance in Malaysia has been growing rapidly in the past 30 years. In 2019, there is a total of 16 Islamic banks listed and supervised by Bank Negara Malaysia (BNM), with 5 out 16 banks are foreign entities. In view of the rivalry with the conventional banking sector, Islamic banks offer new innovative Islamic products and financial projects which may lead to greater risk of Shariah Non-compliance (SNC) exposure to the Islamic Financial Institutions (IFIs) in its effort to stay competitive. This paper attempts to explore the current practices of Islamic banks in treating (SNC) and the extent of compliance with BNM rules and guidelines, particularly BNM Operational Risk Integrated Online Network (ORION) requirement on SNC reporting event. This paper adopts a qualitative research method by conducting semi-structured in-depth interview with the Islamic banking professionals targeting five Islamic banks. Both primary and secondary sources are used for data collection. The finding shows that these Islamic Banks adhere to the BNM rules and requirements, with some minor differences in the implementation process. The findings would contribute positively in terms of enriching and contributing to the existing literature on the SNC practices by Islamic Banks whilst at the same time establishing the levels of compliance of the banks under investigation.
format	Article
author	Hassan, Rusni Omar, Hani Nabila
author_facet	Hassan, Rusni Omar, Hani Nabila
author_sort	Hassan, Rusni
title	Shariah non-compliance treatment in Malaysian Islamic banks
title_short	Shariah non-compliance treatment in Malaysian Islamic banks
title_full	Shariah non-compliance treatment in Malaysian Islamic banks
title_fullStr	Shariah non-compliance treatment in Malaysian Islamic banks
title_full_unstemmed	Shariah non-compliance treatment in Malaysian Islamic banks
title_sort	shariah non-compliance treatment in malaysian islamic banks
publisher	New Millennium Discoveries, UK
publishDate	2019
url	http://irep.iium.edu.my/75397/ http://irep.iium.edu.my/75397/ http://irep.iium.edu.my/75397/1/75397%20-%20Shariah%20Non-Compliance%20Treatment%20in%20Malaysian%20Islamic%20Banks.pdf
first_indexed	2023-09-18T21:46:41Z
last_indexed	2023-09-18T21:46:41Z
_version_	1777413496291459072

Shariah non-compliance treatment in Malaysian Islamic banks

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