Corporate governance and the global performance of Islamic banks
- ISSN: 0828-8666
- DOI: 10.1108/08288660810899368
The purpose of this paper is to study the operation of Islamic banks and the elements which determine their performance. The findings of this paper are that the performance of an Islamic bank – as a company based on principles of Islam – is affected not only by the internal variables of quantitative nature (for example financial ratios) but also by the internal qualitative variables like the managerial variables. Moreover, the performance of an Islamic bank and a conventional bank should not be measured in the same way because of their divergence on the level of the objectives. The Shari’a member must have a qualification in finance and commerce to ensure better quality of supervision and consultation.