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A substantial scholarly discourse surrounds Shariah legislation, yet previous studies have offered limited evidence regarding the necessity of Shariah-related disclosure (SRD), its extent, determining factors, and its impact on performance. This paper seeks to provide a comprehensive review of existing SRD literature within Islamic institutions. To achieve this, we conducted a systematic literature review encompassing 44 studies published in journals from 2003 to 2023. The research articles were systematically categorized based on types of SRD, levels, methodologies employed, determining factors, and their consequent effects on performance. The findings underscore a significant knowledge gap and inconclusive results in the current literature, thereby identifying avenues for future research. Notably, our results indicate that the majority of prior studies are quantitative in nature and have employed secondary data from Islamic banks in Muslim countries. Likewise, research pertaining to other Islamic institutions and their voluntary adherence to Accounting and Auditing Organization for Islamic Financial Institutions guidelines is underreported. Furthermore, our findings suggest that previous studies have often placed undue emphasis on other forms of disclosure or have only considered SRD as a subset of broader categories. Contrarily, the number of studies on this subject has increased in recent years, with more than half of the surveys conducted in the last 8 years of the sample period. In forthcoming research, it is advisable to independently explore SRD and employ Islamic proxies to assess its impact on performance. Moreover, researchers are encouraged to investigate cross-industry differences in this context. The results of this survey will be of significant interest to both academics and non-academics seeking information on Shariah compliance disclosures. [ABSTRACT FROM AUTHOR]

The robust growth demonstrated by the Islamic Banking Industry over the last decade invites serious attention towards less attended areas of Islamic Banking Liquidity Creation, credit concentration, and risk-related financial stability. This study addresses the relationship between liquidity creation and solvency risk during the period of 2004–2021 in the presence of the moderating role of bank credit concentration while comparing Islamic and conventional banks in Pakistan and Malaysia. This study reveals that the relationship of bank liquidity creation is negative and significant with solvency risk across Islamic and conventional banks in Pakistan and Malaysia. This negative relationship has been positively and significantly moderated (reversed) by credit concentration. The result is robust to different regression estimation methods (fixed effect, random effect, GLS) and alternative measures of liquidity creation (Cat fat, Cat nonfat). Further, our study also observes that this relationship holds true while making a comparative analysis of Islamic and conventional banks in Pakistan and Malaysia. Islamic Banks in Pakistan faced more solvency risk while creating liquidity (both on and off-balance sheet) in the presence of moderation of credit concentration than Malaysian Islamic banks and Pakistani conventional banks, thereby showing an immediate need to establish a solvency risk management framework and a diversified loan portfolio strategy. [ABSTRACT FROM AUTHOR]

Despite being exceptionally regulated financial institutions, risk management practices (RMPs) of Islamic banking (IBs) have always remained under the limelight due to their impact on financial performance (FP) and the influence of digitalization (DT). This study aims to investigate the impact of RMPs on FP through the mediating effect of DT. To analyze the linkage between these constructs, we created an index for RMPs, five unique proxies (mobile [MB_DEA], big data [BD_DEA], Internet of Things [IoT], cloud computing [CC_DEA], and social media [SM_DEA]) of DT, and Tobin's Q as a proxy of FP and operationalized the theory of contingency. The data between 2009 and 2020 was collected from Indonesian and Malaysian IBs and was analyzed using the two‐step generalized method of moments (GMMs) technique. The empirical findings represent that RMPs and DT have a significant positive effect on FP. Simultaneously, RMPs have a significant positive effect on two proxies of DT (MB_DEA and SM_DEA), and an insignificant positive effect on the remaining three proxies of DT (BD_DEA, IoT_DEA, and CC_DEA). Simultaneously, DT as a mediator plays a significant role between RMPs and FP. This study contributes to systematizing the RMPs of IBs by integrating digitalization which eventually will increase the financial portfolios of IBs. [ABSTRACT FROM AUTHOR]

It has been widely believed that Islamic finance holds a potential role in achieving sustainable development goals (SDGs). Hence, considering the power of the Shari'a Supervisory Board (SSB) to approve or reject Islamic banking products, this paper investigates the association between SSB attributes and Islamic banks' SDG financing. The study utilized unbalanced data generated from a sample of 32 fully Sharia-compliant Islamic banks across nine (9) countries between 2013 and 2021. The findings reveal that SSB size and SSB financial expertise significantly reduced Shariá-compliant financing for agriculture, education, and health economic activities. Besides, while SSB foreign scholars have an insignificant association with agriculture and education financing, they significantly reduced financing for health. In contrast, SSB meetings and SSB gender diversity significantly increased funding for these activities. These findings could assist regulators in revising the SSB codes of governance to enhance their effectiveness in supporting Islamic banks' activities aimed at achieving SDGs. [ABSTRACT FROM AUTHOR]

Purpose: This study attempts to comprehensively analyze the cost Malmquist productivity index of conventional and Islamic banks in Saudi Arabia, the largest dual banking sector in the world, during the COVID-19 pandemic. Design/methodology/approach: This study employs the novel approach of cost Malmquist productivity index, which focuses on production costs, to measure the change in cost productivity so that the actual impact of the COVID-19 pandemic could be captured. Findings: The Saudi Central Bank has successfully mitigated the impact of the COVID-19 epidemic on the Saudi banking sector by implementing several policies and services. This success is reflected in the large positive shift in the production frontier of Saudi banks. Moreover, it was found that Islamic Saudi banks were by far more productive than conventional Saudi banks during the COVID-19 pandemic. However, the total cost productivity index (CMPCH) of Islamic Saudi banks starts to decline sharply in the last quarter of 2022 compared to conventional Saudi banks, indicating that Islamic banks in Saudi Arabia are suffering the most from the tighter monetary policy recently implemented by the Saudi Central Bank. Practical implications: The results provide insights for policymakers and investors on how different types of banks respond differently to economic crises and monetary policy changes. Targeted support measures may be needed to ensure all banks remain productive and efficient. Originality/value: To the author's knowledge, this is the first study to use this innovative methodology to assess the impact of COVID-19 on bank performance in a dual banking sector. [ABSTRACT FROM AUTHOR]

The study analyzes the impact of competition on environmental and social performance. Based on data collected from 82 banks in the banking industry across nine emerging Middle Eastern and North African (MENA) countries from 2015 to 2021, the results indicate that heightened competitive pressure compels banks to enhance their efforts in environmental and social initiatives. Additionally, a positive correlation is observed between greater Board gender diversity (BGD) and improved environmental and social performance. Finally, the results indicate that the negative impact of market power on environmental and social performance is less pronounced in banks with higher BGD, those operating in countries with a better institutional environment, and in state‐owned banks. In contrast, the negative impact is more pronounced in Islamic banks. Our research findings provide insights into the current discourse on strategic decision‐making in the context of sustainability, shedding light on the benefits associated with competition and gender diversity. [ABSTRACT FROM AUTHOR]

This study aims to measure the impact of the size of the credit investment portfolio on the financial performance of Jordanian Islamic banks by evaluating the credit investment portfolio in Jordan. The researchers adopted a descriptive and analytical approach to address all relevant theoretical and practical aspects of the study. The sample consisted of all Islamic banks operating in Jordan from 2010 to 2023, totaling three banks listed on the Amman Stock Exchange. The study utilized the Eviews 10 software through a panel data package. The statistical analysis revealed that the credit investment portfolios significantly affect the return on assets (ROA), return on equity (ROE), and earnings per share (EPS) for the combined Jordanian Islamic banks. Thus, the findings indicate a statistically significant impact of the credit investment portfolio on financial performance. The study recommended that Islamic banks adopt a balanced policy in managing their investment portfolios to maintain return indicators and employ diversification strategies to minimize risk exposure. [ABSTRACT FROM AUTHOR]

Artificial intelligence (AI) has witnessed unprecedented growth, driven by technological advancements, data proliferation, and the increased precision of machine learning models. The role of AI has expanded beyond merely understanding our environment to actively shaping it, with generative AI, in particular, emerging as a critical tool. Generative AI produces new, innovative content across various fields, including finance, where its applications are transformative. In Islamic banking, early theorists emphasized mudaraba, a profit-sharing mechanism, as a means to effectively mobilize resources for economic and social development. Mudaraba financing promotes fair income distribution and provides a viable way to gather investment capital and allocate financial resources. However, despite its theoretical advantages, mudaraba financing is relatively limited in modern Islamic banks. The primary reason is the associated risk management challenges, which impact the banks, clients, and broader environmental factors, creating an urgent need for effective, practical solutions. This research investigates AI in general and generative AI in particular, focusing on their potential role in managing the risks inherent in mudaraba financing within Islamic banks. It aims to understand how generative AI applications can help mitigate these risks, allowing Islamic banks to protect their funds and broaden their focus beyond traditional debt-based financing. Adopting a descriptive-analytical methodology, the study first describes generative AI's mechanisms, then examines the specific risks of mudaraba financing, and finally analyzes AI’s role in managing these risks. By integrating technological advancements, this research seeks to open new avenues for sustainable growth in Islamic finance, enabling Islamic banks to safeguard their investments while supporting broader economic development. [ABSTRACT FROM AUTHOR]

Purpose: The choice between different financing sources is governed by a number of finance theories, particularly, trade-off theory and pecking order theory. However, the special characteristics of Islamic finance, which forces the exclusion of conventional bonds, leave Islamic banks with limited number of alternatives. Tier 1 sukuk are distinguished type of sukuk that combines the features of conventional bonds and stocks. This paper aims to answer the following question: Does the issuance of Tier 1 sukuk positively affect Islamic banks' profitability or is their impact concentrated on enhancing Islamic banks' capital adequacy ratios? Design/methodology/approach: The data set used in this study consists of all United Arab Emirates (UAE) Islamic banks that issued Tier 1 sukuk over the period 2010–2020. Pooled and fixed effects panel regressions of Tier 1 sukuk and other control variables on three proxies of Islamic banks' profitability were run. The selection of fixed-effect model is based on Hausman test, redundant fixed effects and likelihood ratio test. Findings: This study reveals novel findings. Tier 1 sukuk increases both earnings per share (EPS) and capital adequacy ratios. That is, this study finds that there is a positive significant impact of Tier 1 sukuk on EPS, which indicates that issuing more Tier 1 sukuk will generate more return to shareholders in terms of higher EPS because of the lower cost of Tier 1 sukuk compared to equity. However, this study finds that there is an insignificant impact of Tier on sukuk on both return on assets and return on equity. Hence, it is concluded that Tier 1 sukuk does not increase the risk appetite of UAE Islamic banks. Research limitations/implications: Tier 1 sukuk is a niche instrument that has been recently used by Islamic banks. Hence, there are a limited number of Islamic banks that have issued this type of sukuk and consequently limited number of observations. Therefore, with the increased use of this instrument, a larger set of data will be available for examination. In addition, future research could examine the relationship between issuing Tier 1 sukuk and profitability in other countries where such sukuk have loss absorption feature. The impact of other types of sukuk, such as liability sukuk, on Islamic banks' profitability could also be an interesting field of study. Practical implications: This study recommends Islamic banks to issue more Tier 1 sukuk to enhance their profitability indicators while meeting Basel III accord. This study also recommends investors to purchase the stocks of Islamic banks that issue Tier 1 sukuk because they are able to offer them higher EPS. The authors advise the UAE regulators to allow Islamic banks to issue Tier 1 sukuk with loss absorption feature to enable Islamic banks engage in more risky activities that usually provide larger profits. This study also suggests that the Islamic Financial Services Board (IFSB) reclassifies Tier 1 sukuk, with loss absorption feature, within the highest quality of capital, common equity Tier 1, to encourage Islamic banks to issue this type of sukuk, especially Basel III accord and IFSB 15 require higher ratios of common equity Tier 1 to risk-weighted assets. Originality/value: This research contributes to the existing literature in two ways. First, it adds to the existing literature on the impact of sukuk on Islamic banks profitability. That is, contrary to prior studies that merely investigate the impact of issuing ordinary sukuk on profitability, this study explores a distinguished type of sukuk, that is Tier 1 sukuk, that has been surprisingly ignored so far. Second, this study shows that it is not only capital adequacy ratios that have improved as a result of issuing Tier 1 sukuk but also Tier 1 sukuk reduce the cost of capital of UAE Islamic banks which has been reflected in a higher profitability proxied by EPS. Hence, these sukuk serve a dual function for Islamic banks by improving both capital adequacy and profitability ratios. [ABSTRACT FROM AUTHOR]

The aim of this study is to provide a suitable empirical framework for the interaction between Islamic finance, financial stability, and economic development. Additionally, it is an attempt to empirically evaluate how the levels of financial system stability and economic growth in an oil-rich nation are affected by the financing provided by Islamic banks. The study employs the fully modified ordinary least squares (FMOLS) and quantile regression (QR) based on quarterly data from 2013 to 2022. The findings indicate strong evidence that Islamic banking finance supports economic growth and improves financial system stability. Moreover, the study highlights that this positive relationship is negatively affected by inflation rates and levels of economic policy uncertainty. Financial inclusion has an important positive impact on both dependent variables, reinforcing this link. Furthermore, oil rents in Saudi Arabia (KSA) have contributed to improving economic development and supporting the financial sector’s development to achieve economic diversification as outlined in the Saudi Vision 2030. These findings confirm the necessity of paying attention to developing Islamic banking and increasing its market share by creating products and services that achieve economic efficiency in accordance with suitable policies for making the financial sector a strategic sector that supports economic development in KSA. AcknowledgmentThis work was supported and funded by the Deanship of Scientific Research at Imam Mohammad Ibn Saud Islamic University (IMSIU) (grant number IMSIU-RPP2023024).

Purpose: This research aims to analyze the role of Islamic Corporate Governance (ICG) in mediating and moderating the influence of financing to deposit ratio (FDR) on the level of non-performing financing (NPF) of Islamic banks in Indonesia. Method: This research uses panel data from 7 Islamic banks in Indonesia during the 2016-2021 period. Samples were taken using judgment sampling techniques. The analytical method used is panel regression with a fixed effect model and uses SPSS software. Results: The research results show that there is no evidence that the financing to deposit ratio has a negative and significant effect on ICG. On the other hand, ICG has a negative and significant effect on NPF, and the financing to deposit ratio also does not have a positive and significant effect on NPF. Apart from that, the research results also show that ICG is not proven to mediate the negative influence of financing to deposit ratio on NPF. On the other hand, the moderating effect of ICG on the relationship between FDR and NPF is proven to have an impact. FDR has a significant influence on NPF. Implications: The implication of this study is that Islamic banks in Indonesia need to improve ICG practices as an internal control mechanism to reduce the risk of non-performing financing and improve financial performance. Novelty: This research uses two models of the role of Islamic Corporate Governance (ICG) in mediating and moderating the influence of the Financing to Deposit Ratio (FDR) variable on Non-Performing Financing (NPF).

Background Spin-offs play a significant role in organizational development strategies, particularly in Islamic banking, by fostering entrepreneurship, innovation, and Shariah-compliant management practices. Indonesia stands as a pioneer in implementing the dual banking system and has established a spin-off policy to foster the growth of Islamic banking. This study investigates whether the spin-off decision has a significant impact on financing risk in Indonesian Islamic banks. Methods Financing risk is measured by the non-performing financing ratio, while the spin-off decision is represented by a dummy variable equal to 1 for the post-spin-off period and 0 for the pre-spin-off period. This study utilizes data from semi-annual reports of 35 Indonesian Islamic banks and analyzes it using a dynamic panel model with the Generalized Method of Moments (GMM). Results The findings reveal that spin-offs significantly reduce financing risk, thereby enhancing the financial resilience and boosting investor appeal. Notably, this implies that Islamic banks operating as Islamic windows exhibit a higher level of financing risk compared to fully-fledged Islamic banks. Furthermore, a noteworthy pattern emerges that spin-off Islamic banks with substantial assets demonstrate greater risk in comparison to their counterparts with more modest assets. System GMM also confirmed the result. Conclusions Islamic banks can significantly reduce their financing risks by establishing independent Islamic banks, or spin-offs. Unlike Islamic windows, which are typically integrated within conventional banks and face higher risk levels, standalone Islamic banks offer greater flexibility and control over their operations.

The study investigates the performance differentials between Islamic and conventional banks operating in Palestine across a number of dimensions. Research Problem: The study addresses the lack of comparative analysis between Islamic and conventional banks in Palestine, specifically examining performance disparities using the CAMEL approach. This is critical due to the recent trend of conventional banks acquiring Islamic banks, raising questions about the underlying performance differences. Purpose: The main purpose of this study is to analyze and compare the performance of Islamic and conventional banks in Palestine from 2011 to 2021, focusing on key performance dimensions such as capital adequacy, asset quality, management quality, earning ability, and liquidity. Methodology: The main purpose of this study is to analyze and compare the performance of Islamic and conventional banks in Palestine from 2011 to 2021, focusing on key performance dimensions such as capital adequacy, asset quality, management quality, earning ability, and liquidity. Results: The main purpose of this study is to analyze and compare the performance of Islamic and conventional banks in Palestine from 2011 to 2021, focusing on key performance dimensions such as capital adequacy, asset quality, management quality, earning ability, and liquidity. Recommendations: Islamic banks should refine their business models to adopt higher-risk, higher-profitability strategies and diversify their financing beyond Murabaha. Conventional banks should continue strengthening their liquidity positions and capital management to maintain their competitive edge. [ABSTRACT FROM AUTHOR]

This paper examines whether the different corporate governance structures of conventional banks (CBs) and Islamic banks (IBs) have varying effects on their respective climate‐related disclosure (CRD). Employing a unique dataset of CBs and IBs' CRD and corporate governance structures for the period of 2016–2019, we found that their respective corporate governance structures did indeed affect their CRD in different ways. Our findings suggest that CBs disclose more climate‐related information than IBs because IBs focus on Sharia compliance which does not emphasise the protection of the environment, while CBs may be more responsive to shareholders' and stakeholders' demands on climate and environment. These effects were stronger with the quality of governance, that is, CBs disclose more climate‐related information with the governance quality, while IBs disclose even less when their governance quality increases. The findings of this study have important implications for climate change, especially the Paris Accord and The 26th Meeting of the Conference of Parties (COP26). There are also policy implications for sustainable financial markets and the financial services sector. [ABSTRACT FROM AUTHOR]

Copyright of Environmental & Social Management Journal / Revista de Gestão Social e Ambiental is the property of Environmental & Social Management Journal and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Arts Magazine is the property of Thamar University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The article focuses on a comparative examination of vision statements from Islamic banks (IBs) and Conventional banks (CBs) in the Middle East. Topics include common keywords and themes, the lack of futuristic elements in these statements, and recommendations for enhancing differentiation and technology integration in bank strategies.

This study investigates the relationship between ownership structures and dividend policies for 46 Islamic and 75 conventional banks from 12 MENA and Asian countries between 2012 and 2020. Logit regression is employed to estimate the regression equation, centering on the moderating impacts of the COVID-19 pandemic and national culture. Our findings remain robust as we tackle the endogeneity issue using probit and logistic regression models. Asset growth and GDP growth serve as proxies for investment opportunities. Additionally, dividend per share acts as a proxy for dividend policy. Our findings emphasize how the ownership structure impacts dividend payouts in both banking systems. We observed positive relationships between dividend payouts and foreign ownership, bank size, age, and performance. Conversely, concentration of ownership and leverage negatively influence dividend payouts. The COVID-19 pandemic directly boosts the dividend policy for conventional banks and alters the relationship between foreign ownership and distribution policy in Islamic banks. Specifically, COVID-19 interacts with foreign and state ownership to reduce dividend payouts, but concentration of ownership does not show this effect. This study furnishes evidence affirming the significance of the ownership structure in shaping the dividend payout policy within Islamic and conventional banking. The results maintain their reliability across various estimation approaches. Moreover, this study accounts for the crisis period as a moderating factor influencing dividend payments. [ABSTRACT FROM AUTHOR]

The insolvency risk has an important part in the development and sustainability of the banking industry. The fall in financial parameters due to the Covid-19 outbreak suggests that banks are at risk of insolvency. The study aims to detect and assess developments in insolvency risk in Islamic and conventional banking between 2018 and 2023. The methods used were Z-score, X-score, G-score, and panel data regression. The results indicate that internal factors, namely Loans to Assets at the Top Four Conventional Commercial Banks (BUK), Cost Income Ratio at BUK, Income Diversity, and Total Assets at Islamic Commercial Banks (BUS), have a significant negative effect on the Z-score value. External factors, namely Gross Domestic Product at BUS and BUK, have a substantial negative effect, and Interest Rates at BUK have a significant positive effect on the Z-score value. Islamic and conventional banking must preserve the bank's health by increasing capital, retaining factors important to the Z-score, and conducting additional research with more diversified variables and objects to improve efficiency and stability. A more thorough theoretical model for recognizing and controlling insolvency risk in both kinds of banking can be created using these insights. The article's conclusions can help Indonesian banks create more effective risk management plans. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Economic Administrative & Legal Sciences is the property of Arab Journal of Sciences & Research Publishing (AJSRP) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Leaders have become a key factor in determining the future of an organization. For this reason, support from leaders is very influential on work engagement and employee performance in the organization. Leaders can form a conducive work atmosphere so that employees can be motivated to work. This study aims to link person supervisor fit to employee performance and work engagement mediated by a leader-member exchange. Respondents in this study were employees of six Islamic banks in the province of DIY. Collecting data through questionnaires were distributed online and offline to 158 employees of Islamic Banks. Data were analyzed through SEM-PLS using SMART-PLS software. The results of this study prove that PS-Fit can have a positive effect on employee performance and work engagement. In addition, this study can also examine the role of LMX as a mediating variable that connects PS-Fit to employee performance and employee work engagement. For this reason, managers at Islamic Banks need to optimize the role of leaders in the company, such as improving interpersonal relationships with employees in order to improve employee performance and employee work engagement. Plain language summary: Linking Person-Supervisor Fit with Employee Performance and Work Engagement: The Mediating Role of LMX Having the right supervisor is crucial for employees' success in the workplace. This study explores how the fit between employees and their supervisors (known as Person-Supervisor Fit or PS-Fit) can influence the performance and work engagement of those employees. We found that when an employee feels aligned with their supervisor in terms of values, personality, and work style, they tend to develop a closer and higher-quality relationship. This high-quality relationship between supervisors and subordinates, known as Leader-Member Exchange (LMX), acts as a crucial bridge between PS-Fit and employee work outcomes. When employees have a good LMX relationship with their supervisors, they feel more trusted, respected, and supported. As a result, employees are more motivated, deeply engaged in their work, and demonstrate higher performance as a form of reciprocity. These findings highlight the importance of promoting alignment between employees and supervisors, as well as building high-quality leader-subordinate relationships in the workplace. By managing these factors effectively, organizations can encourage employees to reach their full potential and contribute optimally to the company's success. In summary, this research provides new insights into how individual-environment fit can be translated into beneficial work attitudes and behaviors through high-quality leader-follower relationships. [ABSTRACT FROM AUTHOR]

Paying zakat and disclosing it transparently to stakeholders is one of the ways to demonstrate the Islamic ethical value and accountability of Islamic finance institutions (IFIs). Nevertheless, comprehensive zakat information disclosure practices by Islamic banks (IBs) and Development Financial Institutions (DFIs) have received less attention. Therefore, this study was conducted to develop a comprehensive Zakat Disclosure Index (ZDI) for IBs and DFIs and measure the ZDI level of these institutions. Content analysis was performed through financial statements, annual reports, annual integrated reports and annual sustainability reports for four consecutive financial years from 2016 to 2019. The entire population of 16 IBs and 6 DFIs was selected. The ZDI was developed with two categories based on the liability of paying zakat. The scoring was divided into three groups: (i) mandatory financial information versus voluntary financial information versus mandatory non-financial information versus voluntary non-financial information; (ii) mandatory versus voluntary; and (iii) financial versus non-financial. The result showed that the overall disclosure level was at 60 percent, where mandatory disclosure was at 43 percent and voluntary disclosure was at 17 percent, while for financial and non-financial information, the scores were not much different at 25 percent to 33 percent. The study's implication lies in establishing a standardised zakat index, enhancing comparability among reporting entities. Furthermore, the study holds importance for regulators as it aids in assessing the sufficiency of existing regulations and guidelines. It can guide regulatory actions to uphold the principles of maqasid shariah in reporting practices. [ABSTRACT FROM AUTHOR]

Islamic banking in Egypt has experienced significant growth driven by the rising demand for Shari'ah-compliant financial products. However, the sector faces several challenges, including regulatory uncertainty, limited diversification into other products, and intense competition from conventional banks. This note argues that despite supportive legal frameworks, further development is needed in Egypt to ensure full compliance with Islamic law principles. The intersection of Islamic banking and quantum computing presents a transformative opportunity to address these challenges. Quantum computing offers significant potential to enhance efficiency, security, and innovation in Islamic banking by using quantum bits to perform complex calculations at unprecedented speeds. This capability is particularly relevant for complex financial modelling and encryption, both of which are crucial for maintaining compliance with Shari'ah law. The existence of a regulatory framework led by Egypt's Central Bank and Shari'ah authorities ensures adherence to Islamic principles. However, effective risk management and the implementation of sophisticated financial instruments, such as sukuk (bonds) and takaful (insurance), remain essential. As global finance becomes increasingly complex, innovation within Islamic banks must be fully aligned with Islamic law. This creates a strong incentive to integrate advanced technologies like quantum computing, which will streamline these processes and bolster the sector's resilience. [ABSTRACT FROM AUTHOR]

This study aims to explore the regulatory and Sharī'ah frameworks that govern Islamic banking, focusing on their historical evolution, key regulatory bodies, instruments, and the challenges encountered in ensuring compliance and integrity within the industry. Islamic banking operates under distinct principles that require a specialized governance framework. This framework is critical for ensuring adherence to Shariahah guidelines and maintaining the integrity of financial practices within Islamic financial institutions. Understanding this framework is essential for developing effective governance mechanisms and regulatory compliance. The research employs a comprehensive literature review and qualitative analysis of regulatory documents and historical records related to Islamic banking. Interviews with key stakeholders from regulatory bodies, Islamic banks, and Sharī'ah advisory councils were conducted to gather insights into the operational challenges and compliance practices. The findings highlight the complex interplay between historical context and current regulatory practices. The study reveals that the State Bank of Pakistan (SBP) plays a pivotal role in overseeing compliance, alongside various bank-specific bodies that ensure adherence to Sharī'ah principles. Challenges identified include the need for harmonization of guidelines across different jurisdictions and enhancing the capacity of regulatory bodies to effectively monitor compliance. To address these challenges, the study recommends the establishment of a unified regulatory framework across jurisdictions to enhance consistency. Furthermore, increasing training and capacity-building initiatives for regulatory bodies and Islamic banks is crucial. Finally, fostering collaboration between regulatory authorities and Sharī'ah advisory councils will promote better compliance and strengthen the governance framework of Islamic banking institutions. [ABSTRACT FROM AUTHOR]

The research aims to analyze how Jordanian consumers of Islamic banks view FinTech services and determine whether or not they are willing to use them. 384 clients of Jordanian Islamic banks were surveyed using an adopted questionnaire between May and September 2022 as part of the data collection procedure. For analyzing data Partial Least Square Structural Equation Modelling (PLS-SEM) was employed. According to the study's findings, consumers' intentions to adopt new technology are significantly influenced by ease of use, perceived value, consumer support, assurance, and innovativeness. Furthermore, consumer experience significantly plays the moderating role. It is also important to note that Jordanian clients' perceptions of how these factors affect their intentions to use FinTech services vary considerably. This study is a unique addition that uses firsthand information from clients of Jordanian Islamic banks. It endows innovative perceptions and insights into how Jordanian Islamic banking can enhance consumer satisfaction through the incorporation of Fintech in its operational strategies and plans of action. The conclusions of this research will significantly benefit managers, regulators, and policymakers in the banking sector. [ABSTRACT FROM AUTHOR]

This study reveals the long-term effects of several variables on Non-Performing Loans (NPLs) in Islamic banks (IBs) and conventional banks (CBs) in Malaysia. Using the Autoregressive Distributed Lag (ARDL) technique, the study supports a proactive approach and finds a persistent association between NPLs and asset quality, loan quality, unemployment rate, and inflation rate. Using the ARDL approach, the analysis covers the monthly period from 2018 to early 2021. This study aims to investigate NPLs at two different times: before and after the COVID-19 epidemic. The findings indicate that The ARDL model identifies Loan Quality 1 and 2 as significant influencers of NPLs in Malaysia's CBs. At the same time, asset quality and the unemployment rate show no significant impact. In contrast, IBs show a strong positive correlation between Asset Quality and NPL, with economic factors like the Unemployment Rate and Inflation Rate significantly affecting NPL, reflecting the unique risk-sharing nature of Islamic finance. These findings necessitate improved risk management strategies in both banking sectors. [ABSTRACT FROM AUTHOR]

The assessment of total risk-weighted assets (LTRWAs) in the banking sector is of the utmost importance. It serves as a critical component for regulatory compliance, risk management, and capital adequacy. By accurately assessing LTRWAs, banks can effectively meet regulatory requirements, efficiently allocate capital resources, and proactively manage risks. Moreover, the accurate assessment of LTRWAs supports performance evaluation and fosters investor confidence in the financial stability of banks. This study presents statistical analyses and machine learning methods to identify factors influencing LTRWAs. Data from Bahrain, Jordan, Qatar, the United Arab Emirates, and Yemen, spanning from 2010 to 2021, was utilized. Various statistical tests and models, including ordinary least squares, fixed effect, random effect, correlation, variance inflation factor, tolerance tests, and fintech models, were conducted. The results indicated significant impacts of the unemployment rate, inflation rate, natural logarithm of the loan-to-asset ratio, and natural logarithm of total assets on LTRWAs in regression models. The dataset was divided into a training group (90% of the data) and a testing group (10% of the data) to evaluate the predictive capabilities of various fintech models, including an adaptive network-based fuzzy inference system (ANFIS), a hybrid neural fuzzy inference system (HyFIS), a fuzzy system with the heuristic gradient descent (FS.HGD), and fuzzy inference rules with the descent method (FIR.DM) models. The selection of the optimal model is contingent upon assessing its performance according to specific error criteria. The HyFIS model outperformed others with lower errors in predicting LTRWAs. Independent t-tests confirmed statistically significant differences between original and predicted LTRWA for all models, with HyFIS showing closer predictions. This study provides valuable insights into LTRWA prediction using advanced statistical and machine learning techniques, based on a dataset from multiple countries and years. [ABSTRACT FROM AUTHOR]

The dynamic relationship between macroeconomic conditions, global gold prices, and stock market performance has been a major focus in various studies. This study investigates the impact of inflation, BI rates, and gold prices on the stock prices of Islamic and conventional banks in Indonesia. Using monthly data from January 2021 to December 2023. The method employed panel data regression using the Random Effect Model. The findings indicate that inflation has a negative and significant impact on the Islamic banks stock prices, while BI rates has insignificant effect. On the other hand, inflation has a positive and significant effect on the conventional banks’ stock prices, along with BI rates also having a positive and significant impact. However, global gold prices do not have a significant effect on the stock prices of either Islamic or conventional banks. These results provide deeper insights into how macroeconomic factors influence the performance of the stock market for Islamic and conventional banks in Indonesia.

The global banking industry faces increasing pressure to address its contribution to environmental challenges, including rising greenhouse gas emissions and climate change. There is a notable research gap in how innovative approaches, especially environmental innovation and strategic management, can address these challenges within the banking sector. This paper aims to bridge the lacuna by exploring how management support and environmental innovation influence sustainable environmental performance within the banking sector, specifically focusing on Islamic banks in Saudi Arabia. In this paper, a theoretical framework grounded in resource‑based view and stakeholder theories was adopted to guide the research. Using data collected from 203 banking professionals via convenience random sampling, the study reveals management support is significant and positively related to both environmental innovation (β = 0.749) and environmental performance (β = 0.563). Furthermore, increased investment in green technologies, the implementation of environmental management systems, and ethical practices contribute significantly to enhanced environmental performance (β = 0.252). The analysis also shows that management support exerts an indirect effect on environmental performance through environmental innovation (β = 0.189), emphasizing the importance of a stronger culture of sustainability within the organization. This research offers recommendations for banks and regulators to promote sustainable banking practices, highlighting its potential benefits for brand reputation, productivity, and overall effectiveness.

This study utilizes firm-specific and macroeconomic data, including the number of internet users proxied as fintech, as well as ESG variables, to empirically examine the impact on the profitability and non-performing loans (NPLs) of Islamic and traditional banks in developing countries with a focus on Islamic financing. This study aimed to ascertain if our findings aligned with the New Empirical Industrial Organization (NEIO) and Tripple Bottom Line/Quadruple Bottom Line (TBL/QBL) paradigms. We collected data from more than 600 financial institutions, including both Islamic and conventional banks, from 2005 to 2022. This study complements the literature by examining a wide range of years and banks in QISMUT + 3 countries, as well as investigating the impact of the number of internet users as proxied by fintech variable and ESG variables both on NPLs and profitability indicators in both Islamic and conventional banks in Islamic finance-oriented countries. In terms of persistence, traditional banks are superior to Islamic banks, and banks with sufficient capital are more competitive and efficient in generating profits. Islamic banks (IB) outperformed conventional banks (CB) during the global financial crisis; however, CB outperformed IB in terms of credit risk management. IBs compete more effectively than CBs do because they provide unique Sharia-compliant financial products. Furthermore, the ESG and fintech proxies play a significant role in determining bank asset quality and financial performance. The results are expected to improve the understanding of Islamic banking by bankers, investors, academics, and policymakers, as well as help in policy development for the banking industry in these countries.

Introduction: Islamic banks in Indonesia show significant potential, although their current asset contribution is only 1,9 percent of total Islamic banking asset globally. This is quite a contrast to Indonesia’s title as the country with largest Muslim population in the world, as well as its ambition to become the center of the global sharia economy. One of the efforts that can be made to achieve this goal is by increasing the assets of Indonesian Islamic banks through enhancing their profitability. Methods: This research uses secondary data from eight Sharia Commercial Banks (BUS) in the 2014-2022 period. A static panel regression model is used to examine the impact of Intellectual Capital on the profitability of BUS using Stata 17 application. The dependent variable is profitability, while the independent variables are IC and its components (Human Capital, Structural Capital, Customer Equity, and Relational Capital). The control variables consist of the ratio of total equity to total assets (EQA), non-performing financing (NPF), inflation, and the COVID-19 phenomenon. Results: This study analyzes the impact of intellectual capital (IC) on the profitability of Islamic banks in Indonesia. The results show that IC has a significant positive effect on profitability. The components of human capital (HC) and capital employed (CE) contribute positively, while structural capital (SC) and relational capital (RC) do not have a significant impact. Conclusion and suggestion: Findings of this research indicate that improving human resource competence and optimizing equity capital can enhance the profitability of Islamic banks, whereas investments in organizational structure, technology, and promotion do not yield significant effects. This study also provides policy implications for regulators and bank management in more effectively allocating IC investments. Additionally, the research suggests that Islamic banks should focus on digitalization and financial innovation to strengthen their performance.