This publication is part of the journal (2019-2)
Purpose – This paper aims to develop a performance measure for Islamic banks (IBs) by harmonizing
related studies. Furthermore, this work uses the developed yardstick to analyze the performance of a sample
of 11 IBs from across different countries.
Design/methodology/approach – This paper uses the mix-mode method. The qualitative
approach is engaged first to construct the IBs performance yardstick. Following this, the quantitative
approach is applied through the use of the performance yardstick to measure the sample’s
Findings – This study develops a maqasid-based performance yardstick adapted from previous works. The
developed model in this study is called an integrated maqasid al-Sharīʿah–based performance measure
(IMSPM). By using this performance measure, the present paper finds that the sample performed highest on
the objective of nafs (self) over the three-year period. In addition, this study identifies the information which
best indicates the sample’s performance during the analysis.
Research limitations/implications – This paper uses the sample’s annual reports. The analysis is
thus limited to informational disclosure.
Practical implications – Islamic banking and financial institutions may use the IMSPM to
communicate a measurable report on their promotion of the maqasid al-Sharīʿah (objectives of Islamic
Social implications – The evidence from 11 IBs is indicative of their efforts to realize maqasid al-Sharīʿah
in the banking industry. This point may best challenge the practice of stigmatizing IBs for not being in line
with the Sharīʿah (Islamic law) or of imitating conventional banks.
Originality/value – The novelty of this study lies in two points. First, this study harmonizes previous
works to integrate financial and religious measures in a single yardstick. Second, by using the developed
standard, this study offers a fresh insight into the global IBs’ performance, represented by 11 IBs worldwide.
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