An Exploratory Study of Shari’ah Compliance in Islamic Banking : Evidences from Bangladesh

Abstract

Purpose – The purpose of this paper is to assess the Shari’ah compliance eminence of the Islamic banks in Bangladesh. Design/methodology/approach – The research was grounded on mutually primary and secondary data. Primary data were collected via sample questionnaire survey and individual interview by the researchers; the secondary data were gained from Qur’an, Hadiths, different circular/letters, manuals, research books and journals, annual reports, websites of the sample banks. “Among Shari’ah violation score and bank-specific traits were checked through statistical tools and techniques like weighted average, percentage, SD, variance and correlation by using applying statistical software Statistical package for Social Science ( version17.0).” Findings In Bangladesh Shari’ah compliance status of the Islamic banks is in a susceptiple condition, Shari’ah compliance status extremely diverges amongst the Islamic banks, and due to absence of awareness Shari’ah violation is extreme in financing Activities, lack of honesty in obeying Shari’ah, poor devotion/courtesy in Shari’ah audit and Shari’ah research and privation of strong Shari’ah administrative boarding encompassing twenty-fourhour skilful dexterous associates. Practical implication – The main strategy allegation of this study amongst others are as follows: this study provide strategies to supervisory bodies and Shari’ah boarding associates to govern their future responsibilities and to find their limitations; to acquire the anticipated idea of current state of Shari’ah compliance by senior manager and Workforces and to ascertain their flaws in this respect; this provide strategies to indicate the improved Islamic banks to execute banking transaction for clients and other stakeholders; and the questions upraised in this paper may useably practice by the researchers in Islamic banking for more inclusive studies in Islamic banking and Shari’ah compliance. Originality/value – Status of Shari’ah compliance with a new dataset and comparing Shari’ah violation score with bank-specific attributes can be explanatory a new opportunity by this paper.