Publication:
Treatment of public interest issues in Shariah governance of Islamic banks in Malaysia: a survey
Abstract
A number of public interest issues (PII) have emerged in the Islamic banking sector from complaints by consumer groups. These were unfair financing practices adopted in Islamic banks such as the flat rate method (FRM), Rule of 78 and monthly compounding of profit, and lack of concern in addressing abandon housing financed by banking products. As these issues have caused harm to consumers, the Shariah Governance Policy document (SGPD) 2019 has a role in ensuring that the Board of Directors (BOD) and Shariah Committee (SC) members of Islamic banks can act accordingly to prevent these public interest issues from turning into Shariah non-compliance (SNC) event and even triggering law of tort. The study aims to identify and categorize actual SNC events of Islamic banks as public interest and non-public interest events. It also seeks to investigate the treatment of public interest issues by Islamic banks. This includes the understanding of public interest issues among bankers, the manner in which public interest issues are invoked in Shariah governance and finally, the relationship these public interest issues and bank business and risk strategies.
Keywords
Shariah non-compliant events , Islamic banks , Public interest events , Non-public interest events , Malaysia , Project paper (MSc)
Citation
Shaharudin, F. S. (2020). Treatment of public interest issues in Shariah governance of Islamic banks in Malaysia: a survey (Master dissertation). INCEIF, Kuala Lumpur. Retrieved from https://ikr.inceif.org/handle/INCEIF/3969
Publisher
INCEIF
Available in PDF format. Kindly email to kmc@inceif.org to access the item