Abstract
Effective risk management is an essential component in sustaining business growth and profitability. To be competitive in the industries, every bank has to establish strategic risk management guidelines to exercise effective control in minimizing risk management failures. This is where the control functions are essential in exercising their roles with the advice of the Shariah Committee and approved by the board. This study is mainly to explore the roles of key functions in managing and reporting of Shariah Non-Compliant Income (SNCI) in Islamic banks in Malaysia. Data were gathered from in-depth interviews from the key functions of 10 participating IBs, and review analysis of two policy documents on the Financial Reporting for Islamic Banking Institutions and Shariah Governance Policy 2019. It is interesting to note that purification measures of SNCI need further attention due to little guidelines from the regulator. The findings may benefit multiple users.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
More From: International Journal of Islamic Economics and Finance Research
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.