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Exploring the shariah board diversity characteristics in full-fledged islamic banks globally
AuthorKachkar, Omar Ahmad
MetadataShow full item record
CitationKachkar, O. A. (2020). Exploring the shariah board diversity characteristics in full-fledged islamic banks globally. 12th International Conference on Islamic Economics & Finance, Istanbul, 14–20 June 2020.
This study aims to examine the diversity characteristics of Shariah boards in fully-fledgedcommercial Islamic banks (FFIBs). The data is collected manually covering differentdiversity components in Shariah boards, i.e. age, gender, nationality, education andexperience from 248 FFIBs globally in 50 countries for the year 2019. Sudan, Iraq and Iranhave the highest number of FFIBs, with 31, 30 and 29 banks respectively. Interestingly, thereis only one FFIBs among 14 Shariah banks operating in Indonesia. There are in total 563Shariah board positions in the FFIBs analysed, occupied by 428 Shariah scholars, 135 of themhaving multi-directorship positions. The results reveal that only six female Shariah scholarstake positions in four FFIBs in Bangladesh (1), Brunei (1), Malaysia (3), and Tunisia (1). Asfor the age, the findings show that about 45 per cent of the Shariah board members are 60 orabove, and only 4 per cent lower than 40. Most of the Shariah scholars have the nationality ofBangladesh (55), Malaysia (33) and Saudi Arabia (23). In terms of education, the majority ofthe scholars are graduated from Shariah programs. Nevertheless, about 15 per cent of theShariah scholars have a non-Shariah background such as law (26), economics (9), economicsand comparative religion (22), and business administration (3). The findings may encouragethe management of the FFIBs to more seriously consider the diversity in their Shariah boardscomposition to come up with innovative and sustainable solutions in a dynamically changingenvironment. Further, the policy makers may inforce some measures to improve diversity anddecision making in the FFIBs to respond new dimensions raising in the global economic andsocial environment.