Adopting Green Finance Ratio in Evaluating Islamic Banks Performance as Index for achieving Sharia Maqasid
Abstract
The main objective of Islamic banking is to avoid dealing with Ribaand applying Islamic Sharia’s Maqasid in all financial transactions.The study proposes green finance index which is measurable and applicable as one of performance ratios in Islamic banks based on disclosure of green financings and investments in their key financial statements, and adopting the proposed index for achieving Sharia Maqasid.
Keywords: Sharia’s Maqasid, Islamic banks, Green Finance index, Sustainability, Disclosure.
Full Text:
PDFReferences
Alhashmee, M. (2018) Methods of Financing and Investing In Islamic Banks and their Developmental Impact. Misurata University, Libya.
Arama, K. (2017) Sustainable Development from the Perspective of the Sharia’s Maqasid. Badji Mokhtar University, Annaba, Algeria.
Al-Hamdani, K. I.R. (2011) Challenges to Measuring Environmental Costs: Proposed Model. Technical Institute, Mosul, Iraq.
Al-Homaidi, E.A., Al-Matari, E.M., Anagreh,S., Tabash,M.I. & Senan.N.A.M. (2021) The Relationship Between Zakat Disclosures and Islamic Banking Performance: Evidence from Yemen. Banks and Bank Systems, 16(1), 52-61.
Abdul Rahman,A., Hussain,B. & Bin Odeh,H. (2018) Analytical Study of the Evolution of Items of the Budget: Sample from the Islamic Banks in GCC. Journal of Financial, Accounting and Management Studies. (9), 677-695.
Al-Rifai, A.M.A., Ali, A.F. & Khalil, A.F.M. (2019) The Role of Banks in Supporting the Green Economy and Green Banking in Egypt. Journal of Environmental Sciences, 2 (9), 437-465.
Almonifi.Y.S.A., Rehman, A., & Gulzar,G. (2021) The Covid-19 Pandemic Effect on the Performance of the Islamic Banking Sector in KSA: an Empirical Study of AL Rrajhi Bank. International Journal of Management.12 (4), 533-547.
Ali, M.A.A.M. & Dahab, H.I.I. (2018) Proposed Model for Measuring the Risks of Salam in the Islamic Banks of Sudan. Journal of Economics and Finance, 4(2) 10-31.
Al-Luwaihaq,A.B.M. (2015) Islamic Sharia Maqased. Alukah.net. Retrieved March 20, 2022, from https://www.alukah.net/sharia/0/94949/
Aubada, I.A. (2007) Performance Indicators in Islamic Banks. Doctoral Dissertation. Yarmouk University, Irbid, Jordan.
Al Rajhi Bank Annual Report (2020) Available at https://www.alrajhibank.com.sa/ir/ar/download/pdf/Al_Rajhi_Bank_AR_2020.pdf
Barazia, H. & Belazzouz,B. (2015) The Importance of Disclosure in accordance with Islamic Financial Accounting Standards to Support Governance in Islamic Financial Institutions. Journal of Economics, Management and Commercial Sciences, (14), 74-97.
Bin Zaidan F. Z. (2017) Indicators of green growth in Algeria. Journal of Economics and Management, 7, (2) 467-486.
Bouhanash, M. & Bin Jaafar, R. (2021) The Reality of Green Banking in Commercial Banks: Case Study of the Bank for Agriculture and Rural Development. Master Thesis, Institute of Economic, Commercial and Management Sciences, Mila, Algeria.
Bhattacharyya, R. (2021) Green Finance for Energy Transition, Climate Action and Sustainable Development: Overview of Concepts, Applications, Implementation and Challenges. Green Finance, 4(1), 1–35.
Bank Muamalat Malaysia Berhad Report (2020) Available at https://www.muamalat.com.my/downloads/corporate-overview/annual/2020/index.html
Chowdhury,T.U., Datta,R.&Mohajan,H.K.(2013)Greenfinanceisessentialforeconomicdevelopment and sustainability. International Journal of Research in Commerce, Economics & Management, .3 (10), 1-6.
Dubai Islamic Bank Annual Report (2020) Available at https://www.dib.ae/ar/about-us/news/2021/02/16 /2020
El-Halaby, S. & Hussainey, H. (2015) The Determinants of Social Accountability Disclosure: Evidence from Islamic Banks around the World. International Journal of Business, 203, 1-29.
El-Beltagy, M. (2005) A proposed model for measuring risk in Islamic banking “A field study ". Banking Institute. Saudi Arabian Monetary Agency. Saudi Arabia.
Eissa A. Al-Homaidi, Mosab I. Tabash & Anwar Ahmad (2020) The Profitability of Islamic Banks and Voluntary Disclosure: Empirical Insights from Yemen. Cogent Economics & Finance, 8:1, 1778406. Available at https://www.tandfonline.com/doi/full/10.1080/23322039.2020.1778406
Fatum, A. (2015) Accounting Disclosure of Social Responsibility in the Financial Statements - a Proposed Model. Journal of "Economic Research" Blida University, 2(13) 299-327.
Frimpong, I.K., Adeabah, D., Ofosu, D. & Tenakwah, E.J. (2020) A review of Studies on Green Finance of Banks, Research Gaps and Future Directions. Journal of Sustainable Finance & Investment, available at https://www.researchgate.net/publication/347941978_A_review_of_studies_on_green_finance_of_ banks_research_gaps_and_future_directions
Fathihani, Saputra, J., Haat, M.H.C., Yusliza, M.Y., Muhammad, Z., & Bon, A.T. (2021) A Review of Sustainable Green Finance Literature: Mini Review Approach. Paper was presented at Annual International Conference on Industrial Engineering and Operations Management Singapore, March 7-11, 2021.
Ghosh, S. Nath, S. & Ranjan, A. (2021) Green Finance in India: Progress and Challenges. RBI Bulletin. 61-72.
Halaby, S. Hussainey, K., Marie, M. & Mohsen, H. (2018) The Determinants of Financial, Social and Sharia Disclosure Accountability for Islamic Banks. Risk Governance and Control: Financial Markets & Institutions, 8(3), 21-42.
Haffai,A. & Rahima,C. (2018) Green Islamic Finance and its Role in the Service of Sustainable Development (Green Islamic Bonds in Malaysia as a Model). Journal of Economic Papers, 10(2) 336-348.
Halaby, S.I.A. (2015) Accountability Practices of Islamic Banks: A Stakeholders' Perspective. Doctorate Dissertation, Plymouth University, England.
Hassan, K., Aliyu, S., Huda, M & Rashid, M. (2019) A survey on Islamic Finance and accounting standards. Borsa Istanbul Review S1-S13.
Ibrahim, S.H.B.M., Wirma. A., Alrazi, B., Nor, M.N.B.M. & Pramono. S. (2015) Alternative Disclosure & Performance Measures for Islamic Banks. Retrieved March 22, 2022, fromhttps://faculty.kfupm.edu.sa/coe/sadiq/proceedings/SCAC2004/50.ASC089.EN.Shahul.Altern ative%20Disclosure%20&%20Performance%20_1_.pdf
Islamic Finance Development (2021) Annual Report 2021. Retrieved March 07, 2022from https://www.refinitiv.com/en/resources/spcial-report/islamic-finance%20development%20-report
Islamic Financial Services Board (2007) Disclosure Standard to enhance Transparency and Market Discipline for Institutions which is limited to Providing Islamic Financial Services, except for Institutions Islamic Insurance/Takaful. Retrieved March 11, 2022, from https://search.emarefa.net/ar/detail/BIM-712028
Ismail,N. & Sori.Z.M. (2016) a Closer look at Accounting for Islamic Financial Institutions. Retrieved March 12, 2022, from https://www.researchgate.net/publication/313247927_
Islam, M.R. & Sadekin, M.S. (2020) Disclosure of Financial Reporting of Islamic Financial Institutes of Bangladesh: A Concept of Relevant Reviews. International Journal of Economics, Business, and Accounting Research (IJEBAR), 4(3), 319-339.
Jayathilake, S. (2019) Impact of Green Financing for the Corporate Governance in the Banking Industry. International Journal of Sustainable Development, 12(11), 23-30.
Khairunnessa, F., Vazquez-Brust, D.A. & Yakovleva, N. (2021) A Review of the Recent Developments of Green Banking in Bangladesh. Sustainability 13(1904)1-21.
Keerthi, B.S. (2013) a Study on Emerging Green Finance in India: Its Challenges and Opportunities. International Journal of Management and Social Sciences Research, 2(2) 49-53.
Labidi, M. (2015) The accounting Measurement of Environmental Costs and their Disclosure in the Financial Statements to Improve Environmental Performance: a Case Study of a Group of Industrial Enterprises in Algeria. Doctoral Dissertation, Mohamed Khidr University, Biskra, Algeria.
Mohammed, M.O., Abdul Razak, D. &Taib F. M. (2008) The Performance Measures of Islamic Banking Based on the Maqasid Framework. Paper was presented at the IIUM International Accounting Conference (INTAC IV held at Putra Jaya Marroitt, 25 June 2008.
Naji, M.T.A. (2015) The Effect of the Level of Accounting Disclosure for Financial Services on the Financial Performance of Islamic Bank Listed in Amman Stock Exchange. Master Thesis, Zarqa University, Amman, Jordan.
Objectives of Islamic Banks (n.d) Arabnak.com. Retrieved March 20, 2022, from https://www.arabnak.com/
Platonova, A., Asutay, M., Dixon, R. & Mohammad, S. (2018) The Impact of Corporate Social Responsibility Disclosure on Financial Performance: Evidence from the GCC Islamic Banking Sector. J Bus Ethics (151)451–471.
Radhi, A., K. & Queen, A.M. (2020) Attitudes of Iraqi Banks towards Financing Sustainable Development. Global Journal of Economics and Business, 9(3) 562-574.
Raoudha, S., Taktak,N.B. & Hussainey. K. (2021) The Determinants of Investment Account Holders’ Disclosure in Islamic Banks: International Evidence. Journal of Risk and Financial Management. 14(11), 1-14.
Rehman, S., Wani,I., Khanam,M. & Almonifi,Y.S.A. (2021) A Brief Review of Growth and Development in Islamic Banking. IOSR Journal of Economics and Finance.12 (3), 15-25.
Rehman, A., Almonifi.Y.S.A & Gulzar,G. (2021) Impact of the Covid-19 Pandemic on Islamic Bank Indices of the GCC Countries. International Journal of Islamic Banking and Finance Research. 7(1), 1-17.
Sarea, A., Al-Sartawi, A.M. & Khalid, A. (2019) Electronic Financial Disclosure: Islamic Banking vs Conventional Banking in GCC. 17th Conference on e-Business, e-Services and e-Society Oct 2018, Kuwait City, Kuwait. (I3), 279-291.
Sushma, B. S. (2021) Green Finance -An Effective Tool to Sustainability. International Journal of Creative Research Thoughts, 9(1), 4256- 4263.
Urdaini, T. A. H. (2006) Accountant Disclosure about the Social Responsibility in Financial Reports and Lists for Economic Units. Journal of Tanmiyat AL-rafidain, 83(28) 151-173.
World Bank Group (2017) Green Finance, a Bottom-up Approach to Track Existing Flows. Retrieved March 30, 2022, from https://www.ifc.org/wps/wcm/connect/12ebe660-9cad-4946-825f- 66ce1e0ce147/IFC_Green+Finance+-+A+Bottom- up+Approach+to+Track+Existing+Flows+2017.pdf?MOD=AJPERES&CVID=lKMn.-t
Yaequb, A. A., Rashwan, A.M., & Abas, Z. K. (2021) Sustainability of the Islamic Banking Sector using Green Financial Tools: A comparative Study in the Iraqi and Palestinian Environments. Retrieved March 09, 2022, from https://uomustansiriyah.edu.iq/media/attachments/10/10_2021_06_26!01_45_03_PM.pdf
Refbacks
- There are currently no refbacks.