Exploring green banking performance of Islamic banks vs conventional banks in Bangladesh based on Maqasid Shariah framework

Purpose: Environmental degradation has been identified as one of the major impediments for development in Bangladesh. The World Health Organization has ranked Bangladesh fourth among the most polluted countries in the world. Faced with this challenge, the Government of Bangladesh introduced the Gree...

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Main Authors:	Julia, Taslima, Kassim, Salina
Format:	Article
Language:	English English
Published:	Emerald Group Publishing Ltd. 2019
Subjects:	BPH Islamic Economics BPH321.2 al-Bay’ bi-thaman ‘ajil - Contract Of Sales HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/79668/ http://irep.iium.edu.my/79668/ http://irep.iium.edu.my/79668/ http://irep.iium.edu.my/79668/1/79668_Exploring%20green%20banking.pdf http://irep.iium.edu.my/79668/2/79668_Exploring%20green%20banking_SCOPUS.pdf

id	iium-79668
recordtype	eprints
spelling	iium-796682020-03-19T13:34:10Z http://irep.iium.edu.my/79668/ Exploring green banking performance of Islamic banks vs conventional banks in Bangladesh based on Maqasid Shariah framework Julia, Taslima Kassim, Salina BPH Islamic Economics BPH321.2 al-Bay’ bi-thaman ‘ajil - Contract Of Sales HG3368 Islamic Banking and Finance Purpose: Environmental degradation has been identified as one of the major impediments for development in Bangladesh. The World Health Organization has ranked Bangladesh fourth among the most polluted countries in the world. Faced with this challenge, the Government of Bangladesh introduced the Green Financing Policy and encouraged banks to participate in offering green financing as part of the efforts to promote environment-friendly economic activities for sustainable economic development. This study aims to examine the financial performance of selected commercial banks that offered green financing in Bangladesh in the period from 2012 to 2014. Design/methodology/approach: In achieving this objective, the paper has divided the various sections of green banking policy under Maqasid Shariah framework of Imam Al-Ghazali, which is preserving faith, life, intellect, posterity and wealth. After that, green performance is compared between five conventional banks and five Islamic banks, according to the secondary data gathered from the annual reports and sustainability reports, as well as verified based on interviews. Finally, based on quantitative and qualitative thematic analysis approach, it is identified which banks meet most of the Shariah objectives along with performing sustainably. Findings: The study finds that none of the banks fully meet the green/sustainable policy requirements; however, the Islamic banks are ahead in preserving faith, intellect and wealth circulation. Research limitations/implications: This research is mostly based on secondary data; banks’ non-disclosure of green data was an impediment to run in-depth and fair comparisons. However, to check the reliability and validity of secondary data, two heads of sustainable banking department from conventional bank and two from Islamic bank have been interviewed. Practical implications: Based on the findings, several recommendations are made on ways to expedite green financing, which can ultimately enhance contribution of Islamic banks toward the sustainable economic growth of the country while fulfilling Maqasid Shariah. Social implications: Because the green banking policy aim is very much in line with Maqasid Shariah which is the aim of Islamic banks, Islamic banks can presumably contribute more to the sustainable economic growth of the country by aligning their entire operations with green policies. Originality/value: To the best of the authors’ knowledge, this study is perhaps the earliest initiative to compare Islamic and conventional banks’ green performances in Bangladesh. © 2019, Emerald Publishing Limited. Emerald Group Publishing Ltd. 2019 Article PeerReviewed application/pdf en http://irep.iium.edu.my/79668/1/79668_Exploring%20green%20banking.pdf application/pdf en http://irep.iium.edu.my/79668/2/79668_Exploring%20green%20banking_SCOPUS.pdf Julia, Taslima and Kassim, Salina (2019) Exploring green banking performance of Islamic banks vs conventional banks in Bangladesh based on Maqasid Shariah framework. Journal of Islamic Marketing. pp. 1-9. ISSN 1759-0833 (In Press) https://www.emerald.com/insight/content/doi/10.1108/JIMA-10-2017-0105/full/pdf?title=exploring-green-banking-performance-of-islamic-banks-vs-conventional-banks-in-bangladesh-based-on-italicmaqasid-shariahitalic-framework 10.1108/JIMA-10-2017-0105
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	BPH Islamic Economics BPH321.2 al-Bay’ bi-thaman ‘ajil - Contract Of Sales HG3368 Islamic Banking and Finance
spellingShingle	BPH Islamic Economics BPH321.2 al-Bay’ bi-thaman ‘ajil - Contract Of Sales HG3368 Islamic Banking and Finance Julia, Taslima Kassim, Salina Exploring green banking performance of Islamic banks vs conventional banks in Bangladesh based on Maqasid Shariah framework
description	Purpose: Environmental degradation has been identified as one of the major impediments for development in Bangladesh. The World Health Organization has ranked Bangladesh fourth among the most polluted countries in the world. Faced with this challenge, the Government of Bangladesh introduced the Green Financing Policy and encouraged banks to participate in offering green financing as part of the efforts to promote environment-friendly economic activities for sustainable economic development. This study aims to examine the financial performance of selected commercial banks that offered green financing in Bangladesh in the period from 2012 to 2014. Design/methodology/approach: In achieving this objective, the paper has divided the various sections of green banking policy under Maqasid Shariah framework of Imam Al-Ghazali, which is preserving faith, life, intellect, posterity and wealth. After that, green performance is compared between five conventional banks and five Islamic banks, according to the secondary data gathered from the annual reports and sustainability reports, as well as verified based on interviews. Finally, based on quantitative and qualitative thematic analysis approach, it is identified which banks meet most of the Shariah objectives along with performing sustainably. Findings: The study finds that none of the banks fully meet the green/sustainable policy requirements; however, the Islamic banks are ahead in preserving faith, intellect and wealth circulation. Research limitations/implications: This research is mostly based on secondary data; banks’ non-disclosure of green data was an impediment to run in-depth and fair comparisons. However, to check the reliability and validity of secondary data, two heads of sustainable banking department from conventional bank and two from Islamic bank have been interviewed. Practical implications: Based on the findings, several recommendations are made on ways to expedite green financing, which can ultimately enhance contribution of Islamic banks toward the sustainable economic growth of the country while fulfilling Maqasid Shariah. Social implications: Because the green banking policy aim is very much in line with Maqasid Shariah which is the aim of Islamic banks, Islamic banks can presumably contribute more to the sustainable economic growth of the country by aligning their entire operations with green policies. Originality/value: To the best of the authors’ knowledge, this study is perhaps the earliest initiative to compare Islamic and conventional banks’ green performances in Bangladesh. © 2019, Emerald Publishing Limited.
format	Article
author	Julia, Taslima Kassim, Salina
author_facet	Julia, Taslima Kassim, Salina
author_sort	Julia, Taslima
title	Exploring green banking performance of Islamic banks vs conventional banks in Bangladesh based on Maqasid Shariah framework
title_short	Exploring green banking performance of Islamic banks vs conventional banks in Bangladesh based on Maqasid Shariah framework
title_full	Exploring green banking performance of Islamic banks vs conventional banks in Bangladesh based on Maqasid Shariah framework
title_fullStr	Exploring green banking performance of Islamic banks vs conventional banks in Bangladesh based on Maqasid Shariah framework
title_full_unstemmed	Exploring green banking performance of Islamic banks vs conventional banks in Bangladesh based on Maqasid Shariah framework
title_sort	exploring green banking performance of islamic banks vs conventional banks in bangladesh based on maqasid shariah framework
publisher	Emerald Group Publishing Ltd.
publishDate	2019
url	http://irep.iium.edu.my/79668/ http://irep.iium.edu.my/79668/ http://irep.iium.edu.my/79668/ http://irep.iium.edu.my/79668/1/79668_Exploring%20green%20banking.pdf http://irep.iium.edu.my/79668/2/79668_Exploring%20green%20banking_SCOPUS.pdf
first_indexed	2023-09-18T21:51:39Z
last_indexed	2023-09-18T21:51:39Z
_version_	1777413809747525632

Exploring green banking performance of Islamic banks vs conventional banks in Bangladesh based on Maqasid Shariah framework

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