The economic reality of Islamic banks’ transactions: a qualitative inquiry

Author:

Maali Bassam Mohammad,Fendi Usama Adnan,Atmeh Muhannad Ahmad

Abstract

Purpose This paper aims to investigate the economic substance of Islamic banks’ transaction as perceived by the employees and regulators of banks and the effect of such substance on the need for special accounting standards for Islamic banks. If there is a distinctive “Islamic economic substance”, then special accounting practices may be necessary such as the standards of the Accounting and Auditing Organization for Islamic Financial Institutions. Design/methodology/approach A qualitative inquiry on one of the leading Islamic banks in the Middle East was conducted to investigate the economic substance of the bank’s main two transactions; the deposit system and Murabaha financing, as perceived by informants within one of the earliest Islamic banks and its regulators. Findings It is found that despite the belief that the transactions under examination were different from equivalents within conventional banking, practice within the bank was not consistent with such a belief. Informants largely perceived the economic reality of the investigated transaction as being not different from conventional banks’ transactions, and this would affect the need for special accounting and regulatory frameworks. Research limitations/implications This investigation is confined to informants working within one Islamic bank; their views and perceptions may not coincide with those working in other Islamic banks in the world. Practical implications The results of this investigation provide policy implications for Islamic banks, regulators and standards setters in regard to the need for special accounting standards for Islamic banks. Originality/value The paper is one of the first papers that uses a qualitative inquiry on the main transactions of Islamic banks and the related need for special accounting practices. The paper provides a new perspective on the debate over whether Islamic banking is genuinely innovative or is merely a replicate for conventional banking.

Publisher

Emerald

Subject

Finance,Business and International Management

Reference69 articles.

1. AAOIFI (1999), Statement on the purpose and calculation of capital adequacy ratio for Islamic banks, Accounting and Auditing Organisation for Islamic Financial Institutions, Manamah.

2. AAOIFI (2015), The Accounting, Auditing and Governance Standards for Islamic Financial Institutions, Accounting and Auditing Organisation for Islamic Financial Institutions, Manamah.

3. A critique on accounting for Murabaha contract;Journal of Islamic Accounting and Business Research,2016

4. Diverse accounting standards on disclosures of Islamic financial transactions: prospects and challenges of narrowing gaps;Accounting, Auditing and Accountability Journal,2019

5. Murabaha and Musharakah Moutanaquissah pricing: an interest-free approach;Journal of Islamic Accounting and Business Research,2020

Cited by 3 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

1. Creating a religious identity and impression management by Islamic banks;International Journal of Islamic and Middle Eastern Finance and Management;2024-07-19

2. Islamic financial accounting standards in Pakistan: a comparison with AAOIFI;Journal of Islamic Accounting and Business Research;2024-06-18

3. Experts' views on ḥiyal in Malaysian Islamic banks: the case of tawarruq-based deposit products;ISRA International Journal of Islamic Finance;2022-08-19

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3