An analysis of reputational risks in Islamic banks in Malaysia with a proposed conceptual framework
The most critical intangible asset that a bank possesses is its reputation. The reputation reflects a bank’s relative success in fulfilling the expectations of multiple stakeholders. Establishing a great reputation is a key element of organizational strategy, especially for banks. In case of Islamic...
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| Format: | Article |
| Language: | English English English |
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IIUM
2016
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| Online Access: | http://irep.iium.edu.my/54315/ http://irep.iium.edu.my/54315/1/54315-analysis%20of%20reputational%20risks%20in%20Islamic%20banks%20in%20Malaysia%20with%20a%20proposed%20conceptual%20framework.pdf http://irep.iium.edu.my/54315/7/54315-wos.pdf http://irep.iium.edu.my/54315/13/54315_An%20analysis%20of%20reputational%20risks%20in%20islamic%20banks_scopus.pdf |
| _version_ | 1848784391363362816 |
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| author | Azrak, Tawfik Saiti, Buerhan Engku Ali, Engku Rabiah Adawiah |
| author_facet | Azrak, Tawfik Saiti, Buerhan Engku Ali, Engku Rabiah Adawiah |
| author_sort | Azrak, Tawfik |
| building | IIUM Repository |
| collection | Online Access |
| description | The most critical intangible asset that a bank possesses is its reputation. The reputation reflects a bank’s relative success in fulfilling the expectations of multiple stakeholders. Establishing a great reputation is a key element of organizational strategy, especially for banks. In case of Islamic banks, this is more important due to the nature of its business which is reputed to be defined by shariah principles. Any significant issues with regard to the operations of Islamic banks either in terms of shariah non-compliant financial products or customer complaints may damage the reputations of Islamic banks, thereby driving away customers, investors, shareholders and counterparties. As such, it is expected that Islamic banks pay more attention to managing reputational risks. This paper provides a review on the annual reports and financial statements of local and Islamic banks in Malaysia in order to assess the transparency of reporting and disclosing their reputational risk management framework. It is found that local domestic Islamic banks in Malaysia are more transparent compared to the locally incorporated foreign Islamic banks. Finally, we propose a framework for Islamic banks to manage reputational risks. |
| first_indexed | 2025-11-14T16:36:30Z |
| format | Article |
| id | iium-54315 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English English |
| last_indexed | 2025-11-14T16:36:30Z |
| publishDate | 2016 |
| publisher | IIUM |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-543152017-10-10T04:51:43Z http://irep.iium.edu.my/54315/ An analysis of reputational risks in Islamic banks in Malaysia with a proposed conceptual framework Azrak, Tawfik Saiti, Buerhan Engku Ali, Engku Rabiah Adawiah HG1501 Banking The most critical intangible asset that a bank possesses is its reputation. The reputation reflects a bank’s relative success in fulfilling the expectations of multiple stakeholders. Establishing a great reputation is a key element of organizational strategy, especially for banks. In case of Islamic banks, this is more important due to the nature of its business which is reputed to be defined by shariah principles. Any significant issues with regard to the operations of Islamic banks either in terms of shariah non-compliant financial products or customer complaints may damage the reputations of Islamic banks, thereby driving away customers, investors, shareholders and counterparties. As such, it is expected that Islamic banks pay more attention to managing reputational risks. This paper provides a review on the annual reports and financial statements of local and Islamic banks in Malaysia in order to assess the transparency of reporting and disclosing their reputational risk management framework. It is found that local domestic Islamic banks in Malaysia are more transparent compared to the locally incorporated foreign Islamic banks. Finally, we propose a framework for Islamic banks to manage reputational risks. IIUM 2016 Article PeerReviewed application/pdf en http://irep.iium.edu.my/54315/1/54315-analysis%20of%20reputational%20risks%20in%20Islamic%20banks%20in%20Malaysia%20with%20a%20proposed%20conceptual%20framework.pdf application/pdf en http://irep.iium.edu.my/54315/7/54315-wos.pdf application/pdf en http://irep.iium.edu.my/54315/13/54315_An%20analysis%20of%20reputational%20risks%20in%20islamic%20banks_scopus.pdf Azrak, Tawfik and Saiti, Buerhan and Engku Ali, Engku Rabiah Adawiah (2016) An analysis of reputational risks in Islamic banks in Malaysia with a proposed conceptual framework. Al-Shajarah: Journal of the International Institute of Islamic Thought and Civilization (ISTAC) (SI). pp. 331-360. ISSN 1394-6870 http://journals.iium.edu.my/shajarah |
| spellingShingle | HG1501 Banking Azrak, Tawfik Saiti, Buerhan Engku Ali, Engku Rabiah Adawiah An analysis of reputational risks in Islamic banks in Malaysia with a proposed conceptual framework |
| title | An analysis of reputational risks in Islamic banks in Malaysia with a proposed conceptual framework |
| title_full | An analysis of reputational risks in Islamic banks in Malaysia with a proposed conceptual framework |
| title_fullStr | An analysis of reputational risks in Islamic banks in Malaysia with a proposed conceptual framework |
| title_full_unstemmed | An analysis of reputational risks in Islamic banks in Malaysia with a proposed conceptual framework |
| title_short | An analysis of reputational risks in Islamic banks in Malaysia with a proposed conceptual framework |
| title_sort | analysis of reputational risks in islamic banks in malaysia with a proposed conceptual framework |
| topic | HG1501 Banking |
| url | http://irep.iium.edu.my/54315/ http://irep.iium.edu.my/54315/ http://irep.iium.edu.my/54315/1/54315-analysis%20of%20reputational%20risks%20in%20Islamic%20banks%20in%20Malaysia%20with%20a%20proposed%20conceptual%20framework.pdf http://irep.iium.edu.my/54315/7/54315-wos.pdf http://irep.iium.edu.my/54315/13/54315_An%20analysis%20of%20reputational%20risks%20in%20islamic%20banks_scopus.pdf |