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The State of Islamic Governance in Islamic Financial Institutions: Islamic Governance Index.

Hasan, Zulkifli; Asutay, Mehmet


Zulkifli Hasan


Toseef Azid

Ali Abdullah Alnodel

Muhammad Azeem Qureshi


This chapter aims to explore and examine the extent of Islamic corporate governance practices in 35 Islamic Financial Institutions (IFIs) in Malaysia, Gulf Cooperation Council countries and the United Kingdom, particularly in its six major areas, namely approaches to Islamic governance, regulatory framework and internal policies, roles and functions of shari’ah board, attributes of shari’ah board members on independence, competency and transparency, and confidentiality, operational procedures and perception of IFIs of the shari’ah board’s performance. A questionnaire was developed by benefiting from the Islamic corporate governance standards identified by International Financial Services Board and Accounting and Auditing Organization for IFIs, which included mainly about 50 standards with sub-sections as questions. The study demonstrates the state of Islamic corporate governance practices in these countries. The survey findings affirm that there are significant differences and diverse Islamic governance practices amongst IFIs in the case countries. The study hence provides evidence that there are shortcomings and weaknesses to the existing governance framework, which needs further enhancement and improvement.

Online Publication Date May 20, 2019
Publication Date 2019
Deposit Date May 17, 2019
Publisher Emerald
Pages 371-387
Book Title Research in Corporate and Shari’ah Governance in the Muslim World: Theory and Practice.
Chapter Number 9
ISBN 9781789730081
Public URL