Risk Management, Shariah Compliance Governance and Sustainable Growth of Islamic Banks in Malaysia
This paper aims to analyse the risk management practices, governance of Islamic banks and its role in the sustainable rate of growth within restricted minimum requirements of capital adequacy, leverage, liquidity ratio and its shariah compliance governance practices. In achieving these objectives, the paper assesses the current risk management and governance practices of Islamic banks, i.e., Bank Islam Malaysia Berhad and Bank Muamalat Malaysia Berhad. The paper uses annual reports and focus group interview method to obtain the data. The results of the analysis show that the Leverage Ratio, Liquidity Coverage Ratio (LCR) and capital requirement ratios, such as Common Equity Tier 1 capital Ratio, Core Capital Ratio (CCR) and Risk Weighted Capital Ratio (RWCR) of these Islamic banks have exceeded the minimum requirement. The result of the focus group interview shows that these Islamic banks conformed and implemented the risk management and governance framework imposed by the regulatory agency. However, the growth rate has mixed results albeit the minimum risk management requirement and its shariah compliance governance practices. These empirical results suggest an important policy on issues pertaining to how Islamic banks have to adjust the changes in the banking environment in terms of growth and its comparative advantages specifically on management efficiency.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Article Media
Document Type: Research Article
Affiliations: Universiti Sains Islam Malaysia, Bandar baru Nilai, 71800 Nilai, Negeri Sembilan, Malaysia
Publication date: May 1, 2017
More about this publication?
- ADVANCED SCIENCE LETTERS is an international peer-reviewed journal with a very wide-ranging coverage, consolidates research activities in all areas of (1) Physical Sciences, (2) Biological Sciences, (3) Mathematical Sciences, (4) Engineering, (5) Computer and Information Sciences, and (6) Geosciences to publish original short communications, full research papers and timely brief (mini) reviews with authors photo and biography encompassing the basic and applied research and current developments in educational aspects of these scientific areas.
- Editorial Board
- Information for Authors
- Subscribe to this Title
- Ingenta Connect is not responsible for the content or availability of external websites