Value- based Islamic banking and reporting in Bahrain
International Journal of Ethics and Systems
ISSN: 2514-9369
Article publication date: 23 August 2021
Issue publication date: 11 October 2021
Abstract
Purpose
This paper aims to analyse whether the practices of Islamic banks in Bahrain are in line with value-based Islamic banking (VBIB) and reporting disclosure in the annual reports towards achieving their fundamental objectives of human-centred economic development and social justice.
Design/methodology/approach
Based on Islamic finance, Islamic economic principles and perception of Maqasid al-Shari’ah, this paper examines and assesses the current practices of Islamic financial institutions (IFIs) in Bahrain through content analysis of financial and annual reports of Islamic banks in Bahrain and interviews of Islamic banking experts.
Findings
The findings reveal that value-based banking (VBB) has not been translated fully into practice by the Islamic banks in Bahrain.
Research limitations/implications
The data analysis was restricted to Islamic banks in Bahrain.
Practical implications
This paper identifies the need for reporting standard development to improve the VBB practice in Bahrain in the future. Looking at the objectives of the IFIs, this paper introduces the concept of VBB in Bahrain, which includes ethical banking, responsible banking and social responsibility. The study adds value not only to the current Islamic finance literature but also helps many stakeholders, including prospective academics, who may conduct comparative studies in different jurisdictions throughout the world.
Originality/value
The specific contribution of this paper is the identification of the VBB practices and related disclosure in the Islamic banking industry in Bahrain. The study is useful to harmonise and standardise the practices of VBIB by the contemporary Islamic banks in Bahrain.
Keywords
Citation
Saeed Mohammed, A.A. and Mansor, F. (2021), "Value- based Islamic banking and reporting in Bahrain", International Journal of Ethics and Systems, Vol. 37 No. 4, pp. 644-663. https://doi.org/10.1108/IJOES-09-2020-0141
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited