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Beliefs And Accountability In An Islamic Bank

Citation

Alaudin, A and Shantapriyan, P and Adler, R, Beliefs And Accountability In An Islamic Bank, Corporate Ownership and Control, 12, (4) pp. 80-90. ISSN 1727-9232 (2015) [Refereed Article]

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Abstract

An Islamic bank in Malaysia (Malpha) positions itself on being Islamic. The products and services are more expensive while employees are paid less than normal commercial banks. What bonds customers and employees to the bank are symbols of Islam: aqad (oral agreement between the bank and a customer), doa’ (supplication, a prayer), the tazkirah (short religious talks at the morning meeting) and zakat (or almsgiving). Bank Malpha uses aqad (oral agreement between the bank and a customer) and Doa (supplication, a prayer) to form the basis of belief systems that influence the relationship with a customer. With regard to intermediaries, reciprocity (a form of trust) underpins the relationship between the bank and its intermediaries (housing developers and lawyers for example). This bonding is reinforced by a boundary system: the shariah committee. The shariah committee assesses the shariah (lawful according Islam) compliance and also engages with employees regarding shariah issues. This promotes learning through words and dialogue. However there is little documentation on customer recovery. If indeed non-performing loans are a key performance indicator for this Islamic bank, the challenge for this Islamic bank is to identify key processes to manage customer recovery.

Item Details

Item Type:Refereed Article
Keywords:Islam, Beliefs, Islamic Bank, Shariah Committee, Accountability
Research Division:Commerce, Management, Tourism and Services
Research Group:Accounting, Auditing and Accountability
Research Field:International Accounting
Objective Division:Economic Framework
Objective Group:Management and Productivity
Objective Field:Management
Author:Shantapriyan, P (Dr Paul Shantapriyan)
ID Code:101063
Year Published:2015
Deposited By:Tasmanian School of Business and Economics
Deposited On:2015-06-09
Last Modified:2016-02-19
Downloads:0

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