The Performance Measures of Islamic Banking Based on the Maqasid Framework
It has been taken for granted that Islamic banking (IB) is only about avoiding riba. The objectives of Islamic banking have not been formally addressed. As such, the present conventional performance yardsticks being used by IB have focused largely on financial measures. Hence there is a need for dev...
| Main Authors: | , , |
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| Format: | Proceeding Paper |
| Language: | English |
| Published: |
2008
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/10121/ http://irep.iium.edu.my/10121/1/INTAC_4%28accounting%29.Revised.pdf |
| _version_ | 1848777181693476864 |
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| author | Abdul Razak, Dzuljastri Mohamed, Mustafa Omar Md Taib, Fauziah |
| author_facet | Abdul Razak, Dzuljastri Mohamed, Mustafa Omar Md Taib, Fauziah |
| author_sort | Abdul Razak, Dzuljastri |
| building | IIUM Repository |
| collection | Online Access |
| description | It has been taken for granted that Islamic banking (IB) is only about avoiding riba. The objectives of Islamic banking have not been formally addressed. As such, the present conventional performance yardsticks being used by IB have focused largely on financial measures. Hence there is a need for developing other performance measures that would complement the financial objectives of IB. This paper therefore proposes the objectives of IB from the theory of Maqasid al-Shari’ah and, derives a model of IB performance measures based on these objectives. A behavioral approach operationalization method (Sekaran, 2000) is used to quantify the Maqasid into measurable IB performance indicators that are later used for testing on a sample of six Islamic banks. The banks are evaluated and ranked at three levels based on their: 1) performance ratios, 2) performance indicators and 3) the overall Maqasid Index.
Key words: Maqasid al-Shari’ah, Operationalization,., Simple Additive Weighting (SAW) Maqasid Index.
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| first_indexed | 2025-11-14T14:41:54Z |
| format | Proceeding Paper |
| id | iium-10121 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T14:41:54Z |
| publishDate | 2008 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-101212011-12-14T08:25:32Z http://irep.iium.edu.my/10121/ The Performance Measures of Islamic Banking Based on the Maqasid Framework Abdul Razak, Dzuljastri Mohamed, Mustafa Omar Md Taib, Fauziah HG1501 Banking It has been taken for granted that Islamic banking (IB) is only about avoiding riba. The objectives of Islamic banking have not been formally addressed. As such, the present conventional performance yardsticks being used by IB have focused largely on financial measures. Hence there is a need for developing other performance measures that would complement the financial objectives of IB. This paper therefore proposes the objectives of IB from the theory of Maqasid al-Shari’ah and, derives a model of IB performance measures based on these objectives. A behavioral approach operationalization method (Sekaran, 2000) is used to quantify the Maqasid into measurable IB performance indicators that are later used for testing on a sample of six Islamic banks. The banks are evaluated and ranked at three levels based on their: 1) performance ratios, 2) performance indicators and 3) the overall Maqasid Index. Key words: Maqasid al-Shari’ah, Operationalization,., Simple Additive Weighting (SAW) Maqasid Index. 2008 Proceeding Paper PeerReviewed application/pdf en http://irep.iium.edu.my/10121/1/INTAC_4%28accounting%29.Revised.pdf Abdul Razak, Dzuljastri and Mohamed, Mustafa Omar and Md Taib, Fauziah (2008) The Performance Measures of Islamic Banking Based on the Maqasid Framework. In: IIUM International Accounting Conference IV (INTAC IV), 24-26 June, 2008, Marriot Putrajaya Hotel. (Unpublished) |
| spellingShingle | HG1501 Banking Abdul Razak, Dzuljastri Mohamed, Mustafa Omar Md Taib, Fauziah The Performance Measures of Islamic Banking Based on the Maqasid Framework |
| title | The Performance Measures of Islamic Banking Based on the Maqasid Framework |
| title_full | The Performance Measures of Islamic Banking Based on the Maqasid Framework |
| title_fullStr | The Performance Measures of Islamic Banking Based on the Maqasid Framework |
| title_full_unstemmed | The Performance Measures of Islamic Banking Based on the Maqasid Framework |
| title_short | The Performance Measures of Islamic Banking Based on the Maqasid Framework |
| title_sort | performance measures of islamic banking based on the maqasid framework |
| topic | HG1501 Banking |
| url | http://irep.iium.edu.my/10121/ http://irep.iium.edu.my/10121/1/INTAC_4%28accounting%29.Revised.pdf |