Relevance of <em>Shari’ah</em> Governance in Driving Performance of Islamic Banks during the Financial Crisis: International Evidence

This study aims to examine the impact of Shari’ah governance mechanism on the performance of Islamic banks (IBs) during the financial crisis of 2008. Data were collected from 66 IBs over 18 countries covering the period of 2007–2015 and analyzed using the System-GMM estimator. The findings indicate...

Descripción completa

Guardado en:
Detalles Bibliográficos
Autores principales: Nomran, Naji Mansour, Haron, Razali
Formato: Capítulo de libro
Lenguaje:inglés
Publicado: IntechOpen 2020
Materias:
Acceso en línea:https://www.intechopen.com/chapters/72113
Etiquetas: Agregar Etiqueta
Sin Etiquetas, Sea el primero en etiquetar este registro!
_version_ 1879164714781507584
author Nomran, Naji Mansour
Haron, Razali
author_browse Haron, Razali
Nomran, Naji Mansour
author_facet Nomran, Naji Mansour
Haron, Razali
author_sort Nomran, Naji Mansour
building IntechOpen
collection Acceso abierto
description This study aims to examine the impact of Shari’ah governance mechanism on the performance of Islamic banks (IBs) during the financial crisis of 2008. Data were collected from 66 IBs over 18 countries covering the period of 2007–2015 and analyzed using the System-GMM estimator. The findings indicate that an increase in SSB effectiveness increases IBs’ performance even during the crisis periods. A possible justification for this positive effect is related to the SG structure of IBs that allows them to undertake higher risks to achieve a high efficiency level. For this, the IBs, policymakers and practitioners should consider these findings when aiming to improve SG practices in the Islamic banking industry, which in turn may help in protecting IBs during crisis and non-crisis periods. More specifically, they should give due importance to SSB (size, cross-membership, educational qualification, reputation and expertise) in enhancing the performance of IBs during the crisis and non-crisis periods. This study provides additional evidence on how IBs can sustain their performance during either crisis or non-crisis periods through adopting appropriate SG structure. However, the study only focuses on a small sample of 66 IBs due to lack of the data.
doi_str_mv 10.5772/intechopen.92368
first_indexed 2026-10-15T21:38:44Z
format Book Chapter
fullrecord <oai_dc:dc xmlns:oai_dc="http://www.openarchives.org/OAI/2.0/oai_dc/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:schemaLocation="http://www.openarchives.org/OAI/2.0/oai_dc/ http://www.openarchives.org/OAI/2.0/oai_dc.xsd"><identifier>intech-72113</identifier><datestamp>2020-05-11</datestamp> <dc:title>Relevance of &lt;em&gt;Shari’ah&lt;/em&gt; Governance in Driving Performance of Islamic Banks during the Financial Crisis: International Evidence</dc:title> <dc:creator>Naji Mansour Nomran</dc:creator> <dc:creator>Razali Haron</dc:creator> <dc:subject>Social Sciences and Humanities</dc:subject> <dc:description>This study aims to examine the impact of Shari’ah governance mechanism on the performance of Islamic banks (IBs) during the financial crisis of 2008. Data were collected from 66 IBs over 18 countries covering the period of 2007–2015 and analyzed using the System-GMM estimator. The findings indicate that an increase in SSB effectiveness increases IBs’ performance even during the crisis periods. A possible justification for this positive effect is related to the SG structure of IBs that allows them to undertake higher risks to achieve a high efficiency level. For this, the IBs, policymakers and practitioners should consider these findings when aiming to improve SG practices in the Islamic banking industry, which in turn may help in protecting IBs during crisis and non-crisis periods. More specifically, they should give due importance to SSB (size, cross-membership, educational qualification, reputation and expertise) in enhancing the performance of IBs during the crisis and non-crisis periods. This study provides additional evidence on how IBs can sustain their performance during either crisis or non-crisis periods through adopting appropriate SG structure. However, the study only focuses on a small sample of 66 IBs due to lack of the data.</dc:description> <dc:publisher>IntechOpen</dc:publisher> <dc:date>2020-05-11</dc:date> <dc:type>Chapter, Part Of Book</dc:type> <dc:identifier>https://www.intechopen.com/chapters/72113</dc:identifier> <dc:identifier>doi:10.5772/intechopen.92368</dc:identifier> <dc:language>en</dc:language> <dc:relation>ISBN:978-1-78984-682-9</dc:relation> <dc:rights>https://creativecommons.org/licenses/by/3.0/</dc:rights> <dc:source>https://www.intechopen.com/books/9534 ; Banking and Finance</dc:source> </oai_dc:dc>
id intech-72113
institution IntechOpen
isbn 978-1-78984-682-9
language English
last_indexed 2026-10-15T21:38:44Z
publishDate 2020
publishDateRange 2020
publishDateSort 2020
publisher IntechOpen
publisherStr IntechOpen
record_format oai_dc
spelling intech-721132020-05-11 Relevance of <em>Shari’ah</em> Governance in Driving Performance of Islamic Banks during the Financial Crisis: International Evidence Naji Mansour Nomran Razali Haron Social Sciences and Humanities This study aims to examine the impact of Shari’ah governance mechanism on the performance of Islamic banks (IBs) during the financial crisis of 2008. Data were collected from 66 IBs over 18 countries covering the period of 2007–2015 and analyzed using the System-GMM estimator. The findings indicate that an increase in SSB effectiveness increases IBs’ performance even during the crisis periods. A possible justification for this positive effect is related to the SG structure of IBs that allows them to undertake higher risks to achieve a high efficiency level. For this, the IBs, policymakers and practitioners should consider these findings when aiming to improve SG practices in the Islamic banking industry, which in turn may help in protecting IBs during crisis and non-crisis periods. More specifically, they should give due importance to SSB (size, cross-membership, educational qualification, reputation and expertise) in enhancing the performance of IBs during the crisis and non-crisis periods. This study provides additional evidence on how IBs can sustain their performance during either crisis or non-crisis periods through adopting appropriate SG structure. However, the study only focuses on a small sample of 66 IBs due to lack of the data. IntechOpen 2020-05-11 Chapter, Part Of Book https://www.intechopen.com/chapters/72113 doi:10.5772/intechopen.92368 en ISBN:978-1-78984-682-9 https://creativecommons.org/licenses/by/3.0/ https://www.intechopen.com/books/9534 ; Banking and Finance
spellingShingle Social Sciences and Humanities
Nomran, Naji Mansour
Haron, Razali
Relevance of <em>Shari’ah</em> Governance in Driving Performance of Islamic Banks during the Financial Crisis: International Evidence
title Relevance of <em>Shari’ah</em> Governance in Driving Performance of Islamic Banks during the Financial Crisis: International Evidence
title_full Relevance of <em>Shari’ah</em> Governance in Driving Performance of Islamic Banks during the Financial Crisis: International Evidence
title_fullStr Relevance of <em>Shari’ah</em> Governance in Driving Performance of Islamic Banks during the Financial Crisis: International Evidence
title_full_unstemmed Relevance of <em>Shari’ah</em> Governance in Driving Performance of Islamic Banks during the Financial Crisis: International Evidence
title_short Relevance of <em>Shari’ah</em> Governance in Driving Performance of Islamic Banks during the Financial Crisis: International Evidence
title_sort relevance of em shari ah em governance in driving performance of islamic banks during the financial crisis international evidence
topic Social Sciences and Humanities
url https://www.intechopen.com/chapters/72113
work_keys_str_mv AT nomrannajimansour relevanceofemshariahemgovernanceindrivingperformanceofislamicbanksduringthefinancialcrisisinternationalevidence
AT haronrazali relevanceofemshariahemgovernanceindrivingperformanceofislamicbanksduringthefinancialcrisisinternationalevidence