Benchmarking the Objectives of Shariah in Practice: A Comparative Maqāṣid Index Analysis of Five Leading Islamic Banks Across OIC Countries
DOI:
https://doi.org/10.58968/msr.v3i1.724Keywords:
Maqāṣid Index, Islamic Banks, OIC CountriesAbstract
This study examines the extent to which leading Islamic banks operationalize the higher objectives of Islamic law (Maqāṣid al-Sharīʿah) in contemporary banking practice. Moving beyond conventional financial performance indicators, the research develops and applies a comprehensive six-dimensional Maqasid Index (MI-6D). Using a deductive, comparative research design, the study analyzes 2024 Integrated Annual Reports and Sustainability/ESG Reports of five systemically important Islamic banks across Organisation of Islamic Cooperation (OIC) countries: Bank Syariah Indonesia, Al Rajhi Bank (Saudi Arabia), Maybank Islamic (Malaysia), Meezan Bank (Pakistan), and Kuveyt Türk Participation Bank (Türkiye). Employing qualitative content analysis and proxy-based indicators derived from established Maqasid literature and ESG frameworks, the findings reveal significant variation in the practical realization of Maqasid objectives across regions. While all sampled banks demonstrate strong compliance in Shariah governance and wealth preservation, notable differences emerge in social development, environmental stewardship, and real-sector engagement. Banks operating in jurisdictions with mature sustainability frameworks exhibit more comprehensive disclosure and stronger alignment with the expanded Maqasid paradigm, particularly in ḥifẓ al-biʾah. The study contributes theoretically by operationalizing a contemporary six-dimensional Maqasid Index and empirically by providing an up-to-date cross-country benchmark.
References
Antonio, M. S., Sanrego, Y. D., & Taufiq, M. (2012). An analysis of Islamic banking performance: Maqashid index implementation in Indonesia and Jordan. Journal of Islamic Finance, 1(1), 12–29.
As-Salafiyah, A., Rusydiana, A. S., & Mustafa, M. I. (2022). Maqashid sharia-based mosque empowerment index. International Journal of Ethics and Systems, 38(2), 173-190.
Asutay, M. (2007). A political economy approach to Islamic economics: Systemic understanding for an alternative economic system. Kyoto Bulletin of Islamic Area Studies, 1(2), 3–18.
Asutay, M. (2012). Conceptualising and locating the social failure of Islamic finance: Aspirations of Islamic moral economy vs the realities of Islamic finance. Asian and African Area Studies, 11(2), 93–113.
Asutay, M., & Harningtyas, A. F. (2015). Developing Maqasid al-Shari’ah index to evaluate social performance of Islamic banks: A conceptual and empirical attempt. International Journal of Islamic Economics and Finance Studies, 1(1), 5–64.
Auda, J. (2008). Maqasid al-Shariah as philosophy of Islamic law: A systems approach. International Institute of Islamic Thought.
Bedoui, M. H., & Chtioui, T. (2014). Islamic social responsibility and Islamic banks’ performance: A Maqasid index approach. International Journal of Islamic and Middle Eastern Finance and Management, 7(2), 246–263.
Deegan, C. (2009). Financial accounting theory (3rd ed.). McGraw-Hill.
Dusuki, A. W. (2011). Islamic financial system: Principles and operations. ISRA Research Paper.
El-Gamal, M. A. (2006). Islamic finance: Law, economics, and practice. Cambridge University Press.
Gray, D. E. (2018). Doing research in the real world (4th ed.). SAGE.
Hassan, M. K., & Siraj, S. A. (2017). An empirical analysis of Islamic banking performance. Journal of Islamic Accounting and Business Research, 8(4), 385–405.
Hooghiemstra, R. (2000). Corporate communication and impression management: New perspectives. Journal of Business Ethics, 27(1–2), 55–68.
Lincoln, Y. S., & Guba, E. G. (1985). Naturalistic inquiry. SAGE.
Mohammed, M. O. (2008). The performance of Islamic banking: A Maqasid approach. Humanomics, 24(3), 208–226.
Mohammed, M. O., Razak, D. A., & Taib, F. M. (2015). The performance measurement of Islamic banking based on the Maqasid framework. Social Indicators Research, 114(3), 1091–1111.
Platonova, E., Asutay, M., Dixon, R., & Mohammad, S. (2018). The impact of corporate social responsibility disclosure on financial performance. Journal of Business Ethics, 151(2), 451–471.
Rianto, M. N., Sulaeman, A., & Kurniawan, R. (2022). Islamic banking and socio-economic development. Journal of Islamic Monetary Economics and Finance, 8(2), 245–268.
Sairally, S. (2013). Evaluating the “social responsibility” of Islamic finance. International Journal of Islamic and Middle Eastern Finance and Management, 6(3), 238–257.
Saunders, M., Lewis, P., & Thornhill, A. (2019). Research methods for business students (8th ed.). Pearson.
Sencal, E., & Asutay, M. (2023). Islamic moral economy, climate change and environmental Maqasid. Journal of Islamic Ethics, 7(1–2), 1–25.
Siddiqi, M. N. (2007). Riba, bank interest and the rationale of its prohibition. Islamic Research and Training Institute.
