Professional Documents
Culture Documents
and
Ruma Khanam
Senior Officer
Islami Bank Bangladesh Limited
Muradpur Branch, Chittagong, Bangladesh
Citation:
Ullah, M. H. and Khanam, R. (Forthcoming), Whether Shari`ah Compliance Efficiency a
Matter for the Financial Performance: The Case of Islami Bank Bangladesh Limited, Journal
of Islamic Accounting and Business Research, Vol. 9, No. 2, pp. ---.
1. Introduction:
Shariah is regarded as the foundation of Islamic organizations (Ullah, 2014) and Shari`ah
compliance is the primary responsibility to maintain their status as Islamic. Shariah
compliance or religion is the single most important factor that makes Islamic banks favorable
to the customers (Ahmad and Haron, 2002; Naser et al., 1999; Metawa and Almossawi, 1998;
Rashid et al., 2014 and Archer and Karim, 2002). Moreover, Allah (SWT) provided divinely
ordained Shari`ah laws that ensure the rights and responsibilities of all parties concerned.
Shari`ah laws in banking business remove cruelty and injustice in the financial system due to
Riba and ensure socio-economic development by introducing the Halal ways of doing
business (Jalil and Rahman, 2010; Imam and Kpodar, 2010; Rarick, 2009; Bidabad and
Allahyarifard, 2008 and Rahman, 2007).
Islamic banking has been dominantly flourishing for last few decades throughout the globe.
Currently, more than 475 Islamic financial institutions spread over 75 countries and well over
250 mutual funds that comply with Islamic principles (Malik, et al., 2011). During the last
decade, the Islamic banking industry has grown at a remarkable pace, at 2030% per year
being three times the rate for conventional banks (Srairi et al., 2015). Moreover, Islamic
financial institutions are growing much faster than conventional banks because of the strong
demand among consumers for products and services that comply with Shari`ah (Benaissa, et
al., 2005). Compare to traditional banks, Islamic banks have been performing better in case of
deposit growth (Khan, 2010), business development, profitability, liquidity and solvency
(Safiullah, 2010), asset quality, capitalization (Beck et al. 2013), financial stability (Cihak
and Hesse, 2010), solvency, risk, cash, cash-deposit ratio (Samad and Hassan, 2000).
The level of Shari`ah compliance and financial performance of the Islamic banks differ.
Sometimes Islamic banks cannot comply a few Shari'ah rulings due to economic and external
regulatory reasons. The level of Shari`ah compliance of all the Islamic banks is not same
though they are working in the same regulatory and economic environment (Ullah, 2014).
Among the sample Islamic banks, Islami Bank Bangladesh Limited (IBBL) is the most
Shari`ah compliant bank in Bangladesh (Ullah, 2014). Similarly, the studies of Uddin (2014)
and Chowdhury (2009) provided that financial performance of Islamic banks in Bangladesh
are different. Among others, they observed that IBBL outperformed all other Islamic banks
and even the traditional banks in new branch opening, deposit growth, return on assets,
capital adequacy ratio, and return on equities. That means IBBL has been accomplishing
exceptional performance as a most Shari`ah compliant bank. Therefore, the study explores
whether Shari`ah compliance efficiency a matter for the financial performance of IBBL.
Moreover, this paper provides new insights into the importance of Islamic banks and their
performance in relation to the choice of customers.
The remainder of the paper is organized as follows. Section 2 reviews the relevant literature.
The research method is outlined in Section 3. Section 4 presents the analysis of the findings.
Finally, Section 5 summarizes the paper and draws the conclusion.
2. Literature Review:
Shariah is the basic guiding principles for directing all of the operations of the Islamic banks
(Siddiqi, 1983; Ahmad, 1984; Siddiqi, 1985; Khan and Mirakhor, 1986; Ahmad, 2000;
Siddiqui, 2001). The primary objective of an Islamic bank is to offer banking services
according to Islamic law and in fact, Shari`ah compliance is the very essence of an Islamic
bank and its banking business (Ghayad, 2008). The findings of Ahmad and Haron (2002),
Naser et al. (1999), Metawa and Almossawi (1998), Rashid et al. (2014), and Archer and
Karim (2002) showed that Shariah compliance or religion is the single most important factor
for choosing Islamic banks and Shariah compliance guarantees the credibility of Islamic
banks and inspires confidence in the shareholders and stakeholders (Briston and El-Ashker,
1986; Tomkins and Karim, 1987; Karim, 1990a; 1990b; Banaga et al., 1994; Bhambra, 2002;
Rammal, 2006; Ghayad, 2008; Laldin, 2008). Though Shari`ah compliance initiates few
limitations to the Islamic banking business, it also creates enormous advantages to them.
Shari`ah compliance creates few boundaries to the Islamic banking business. Primarily,
Islamic banks do not have unlimited scope for investment in any stock or security because of
religious constraints. As Shari`ah Board supervises bank investment, therefore, they can only
invest in Shari`ah approved projects (Samad and Hassan, 2000). They cannot invest beyond
the Shari`ah Board approved investments even if they can earn a higher rate of returns.
Moreover, Abbas et al. (2009) and Iqbal et al. (1998) hold that new products for the Islamic
banks cannot be introduced without prior permission and approval from the Shariah board.
Due to maintaining the Islamic banking procedures, it is evidenced to be less cost-effective
(Beck et al. 2013). On the other hand, Shari`ah compliance unlocks many avenues of
opportunities that outweigh these constraints.
Islamic banks, in some cases, outperform the traditional banks. Safiullah (2010) stated that
though interest-based banks are superior in some instances, overall, comparatively Islamic
banks are superior in financial performance to that of interest-based conventional banks. The
performance of interest-free Islamic banks in business development, profitability, liquidity,
and solvency, is higher than that of interest-based conventional banks (Safiullah, 2010). Also,
Islamic banks have a higher intermediation ratio, higher asset quality and are better
capitalized (Beck et al. 2013). The better stock performance of listed Islamic banks during the
financial crisis is due to their higher capitalization and better asset quality (Beck et al. 2013).
Cihak and Hesse (2010) found that small Islamic banks are more stable than small
conventional banks, with the reserve holding for large banks. Khan (2010) observed that
Islamic banks enjoy substantially higher deposit growth rates than conventional banks.
Samad and Hassan (2000) also evidenced that Islamic bank showed better performance than
traditional banks regarding solvency, risk, cash, cash-deposit ratio and it is significant at 5%
level.
Islamic banks have been performing better not only in financial performance but also in
social performance. The studies of Jalil and Rahman (2010), Imam and Kpodar (2010),
Rarick (2009), Bidabad and Allahyarifard (2008), and Rahman (2007) noted that cruelty and
injustice in the financial system due to Riba is removed, and socio-economic development is
ensured by introducing the Halal ways of doing business e.g. Musharkah, Mudharbah, Bai
Salam and Ijarah. Islamic banking system is much participatory than traditional banking
(Safiullah, 2010). Samad and Hassan (2000) expected that the information gap between bank
and the bank borrowers to be minimum because both party jointly works to maximize profit
and minimize losses. Moreover, Islamic banking could motivate the employees more than
traditional banks in complying Shari`ah and legal systems (Safiullah, 2010).
Though Shari`ah compliance generates enormous benefits to the Islamic banks, all of them do
not comply Shari`ah appropriately. The study of Ullah (2014) on four selected Islamic banks
of Bangladesh revealed that all the Islamic banks are not following Shari`ah equally,
management and executives of the banks are not knowledgeable in Shari`ah at the same level
and do not emphasize Shari`ah compliance equally. Chong and Liu (2009) found that only a
small portion of Islamic bank financing in Malaysia is based on profit-loss sharing and that
Islamic deposits are not interest-free, but closely pegged to traditional deposits. Practitioners
and academics alike, however, have observed that most Islamic products, in reality, are not
based on profit-loss sharing but resemble very much debt instruments (Cihak and Hesse,
2010). Similarly, Hassan (2012) noted that the Shariah reviews were found not to be
effectively implemented by the Shariah boards, and Meera and Larbani (2009) confirmed
that the current model is operating similar to conventional banking, violates Shariah,
therefore, hinders the attainment of the objectives of Islamic law. Sometimes, it is observed
that Islamic banks violate Shari`ah as they become compelled to do so.
Different factors hinder Shari`ah compliance of the Islamic financial institutions. Fatwa
shopping, tempting or influencing or the invisible hand of management on the decision of
Shari`ah Supervisory Board, a different interpretation of existing Shari`ah rulings (Grais and
Pellegrini, 2006; Ullah, 2012) and lack of specially-designed Shari`ah-compliant financial
products (Koch and Stenberg, 2010) were found to instigate Shari`ah violation. The economic
system, regulatory procedures, Islamic banking law, Shari`ah Research, Shari`ah audit, fulltime Shari`ah experts are the significant factors influencing Shari`ah compliance of the
Islamic banks in Bangladesh (Ullah, 2014).
It is observed from the above that Shari`ah compliance creates advantages and constraints for
the Islamic banks; all the banks are not complying Shari`ah equally; Islamic banks, in
different cases, performing better than traditional banks. Moreover, Ghayad (2008) observed
that Shari`ah and profit are quite compatible. Therefore, it is the dilemma whether the level of
Shari`ah compliance has any influence on the financial performance of the Islamic banks.
This paper examines the case, Islami Bank Bangladesh Limited, to reach a conclusion in this
regard.
3. Method
This study used electronic mail (e-mail) interview method for collecting responses from the
interviewees. The researchers could not take face-to-face interviews because of time and
resource limitations and importantly, the researchers currently are not available in the country
of study. E-mail interviews followed all the guidelines of Saunders et al. (2009), Murray &
Sixsmith (1998) and McCoyd & Kerson (2006). Researchers are using this approach more
because of its advantages after 2000 (McCoyd & Kerson, 2006, Mann and Stewart, 2000).
Major advantages of the e-mail interview approach include: (i) collects rich data because of
more honest and candid response than face-to-face interview (Turkle, 1995, Motluk 1997 and
McCoyd & Kerson, 2006); (ii) abolishes the time and space constraints (Motluk 1997,
Murray & Sixsmith, 1998); (iii) gives more opportunities of thinking to the respondents for
providing planned and better response (Hiltz and Turoff, 1978, Burton, 1994, Morgan and
Symon, 2004); (iv) eradicates time and cost for transcribing interview response (Foster
1994); (v) cost-effective and informal access to the respondents (Alves and Szucs, 2001, Fyfe
et al., 2001, Sills and Song, 2002); (vi) offers more control over the response that the
respondent himself replied the answers to the questions using his e-mail (Witmer et al. 1999)
and (vii) permits widespread and long dialogue at their convenience (McCoyd & Kerson,
2006).
The study applied the e-mail interview process as delineated in different researches. Firstly
researchers identified the possible interviewees (Hewson et al. 2003). Two set of questions
were developed, one for IBBL clients and another for financial analysts, executives of
regulatory bodies and other Islamic and traditional bank officers. Interview participants were
selected giving importance to their knowledge in Islamic and traditional banking. An e-mail
was sent as a Pre-survey contact informing them expecting a questionnaire (Saunders et al.,
2009). Then interview questions were sent along with a cover letter. The e-mail was sent
assuming the favorable time of the interviewees. A follow-up e-mail was sent after a week
and a second reminder after two more weeks to the interviewees who did not respond at that
time.
i. Questionnaire:
Relevant literature was consulted for determining the research gap and setting the appropriate
interview questions. Two sets of questionnaires were prepared for collecting the responses
from the interviewees. One set, consisting of 9 questions, was prepared for the IBBL clients
and another set, composed of 5 questions, was prepared for the remaining interviewees. The
study was conducted on IBBL because of its outstanding performance and the first Islamic
bank not only in Bangladesh but also in South-east Asia.
ii. Sample:
The study primarily expected to collect e-mail interviews from 60 interviewees (please see
Table 1) including financial analysts (5), executive of regulatory bodies (5), IBBL clients
(15), IBBL executives (15), executives of other Islamic banks (10) and executives of
traditional banks (10). According to the plan, after collecting the e-mail IDs, the
questionnaires were sent to the interviewees requesting for early response. E-mail interviews
were collected in between September 14 to October 23, 2015. Total 24 interview responses
were received out of which 13 received without any reminder, eight received after the first
reminder, and three more were received after the second reminder.
Financial Analyst
Regulatory Executive
IBBL Client
IBBL Executive
Other Islamic Bank Executive
Traditional Bank Executive
Total
Overall
Percentage
4.17%
12.50%
37.50%
16.67%
16.67%
12.50%
100.00%
Details of the interviewees are provided in appendix-1. Among the interviewees, two are
female and remaining are male. IBBL clients were chosen from International Islamic
University Chittagong and the University of Chittagong to get informed responses because of
the expectation of having knowledge of Islamic and traditional banking. Among the clients,
seven are university teachers, a university executive, and an IT professional. All the four
executives of other Islamic bank respondents were from EXIM bank, and three traditional
bank executives were from Jamuna Bank Limited, Dutch-Bangla Bank Limited, and Prime
Bank Limited. Two executives of traditional bank replied that they are not capable of
response as they have no or poor knowledge of Islamic banking.
Most of the interviewees are highly educated. Three (12.50%) of the interviewees have Ph.D.
or Ph.D. students in finance and banking, two (8.33%) of them have M.Phil or M.Phil student
in finance and banking, two (8.33%) of them are professional accountants (CA/CMA) and 17
(70.83%) have MBA/MSc degree. Moreover, all of the eight executives of the Islamic banks
have specialized diploma and training in Islamic banking. Five (20.83%) of the interviewees
are from junior-level, 12 (50%) are from middle-level, and seven (29.17%) are from highlevel management. Four (16.67%) of the interviewees are of 31-35, 16 (66.67%) are of 36-40
and four (16.67%) are of 41-50 year of age.
4. Analysis of the Findings
The analysis of the responses of the interviewees incorporates two sets of the questionnaire in
which nine questions were for the clients, and five questions were for the remaining
interviewees. However, nine questions asked to the clients also include those five questions
asked to other respondents. The analysis of the responses are delineated as under:
Yes, I collected the necessary information and came to know that the Shari`ah rules
are strictly followed in IBBL, and they have a strong Shari`ah board.
Another client (client-9) thoroughly examined the level of Shari`ah compliance before
banking with IBBL. In this regard, he collected information from different sources like IBBL
officers, clients, and the website. Majority of the bank officers (94.91%) believed that most of
the clients are fascinated to the Islamic banks because of Shari`ah compliance, but not for
earning more profit (Ullah, 2014), and religion is a dominant reason for banking with Islamic
bank (Ahmad and Haron, 2002; Naser et al., 1999; Metawa and Almossawi, 1998; Rashid et
al., 2014 and Archer and Karim, 2002).
In my point of view, IBBL obeys Shariah more than other Islamic Banks in Bangladesh
since they gave birth of this concept in the country and they are continuously researching on
different issues that they face while performing in the real field; whereas other Islamic banks
are just followers Moreover, huge competition, extra client base, position in the market
and target orientation create a situation that compels IBBL to obey Shariah 100%.
Client-2 from her practical observation assured, after several personal observations in
different cases, it appeared to me that they are trying to follow the Shariah more sincerely
than the others. On the other hand, Client-5 identified the reasons for more Shari`ah
compliance as IBBL has independent Shari`ah board and organizes regular appraisal
program; besides, they have Islami Bank Training and Research Academy (IBTRA) for
research and development. Two executives of other Islamic banks (IB-1 & 4) used the
phrase obviously IBBL obeys more Shari`ah and IB-4 provided the credit to the loyal
customers for assisting IBBL in this case. He asserted that IBBL comply Shari`ah more
because loyal customers never feel disturbed because of strict compliance whereas it is a
challenge for other Islamic Banks. One executive of IBBL (IBBL-2) acknowledged the role
of management in this regard as IBBL motivates its staffs for Shari`ah awareness by
continuous training, audit and many other motivational programs.
Yes, I think people choose this bank mostly for its Shari`ah performance. In
Bangladesh, we know that 90% people are Muslims and majority of them feel
uncomfortable with banking transaction that includes interests. Hence, they opt for
Islami Bank for their banking because the bank follows the Shari`ah banking that
denies interest based transaction and prefers risk-based profit/loss sharing approach.
An executive of a traditional bank (TB-1) also argued Shari`ah performance be the reasons
for choosing IBBL as under:
Yes, of course. Islamic-minded people keep IBBL on top of their choice for their
banking activities because of being more Shari`ah compliant than other Islamic banks
in Bangladesh. IBBL has a full-fledged Shari`ah board constitutes with renowned
Islamic scholars of the country from the very outset of the operation.
On the other hand, other interviewees recognized some other factors influencing the banking
decisions for the clients in addition to Shari`ah performance. Importantly, all the IBBL
executives uttered some other issues for making the bank unique other than Shari`ah.
Responses of the two executives (IBBL-1 and IBBL-4) in this case are:
Shari`ah performance is one of the reasons but not the only cause why people choose
IBBL. The doors of IBBL are open for mass people. Individual depositor, small-scale
owners, new entrepreneurs, as well as large importers and exporters are clients of
IBBL. Reasonable charges for different services and availability of branches at various
locations in are other reasons.
Most of the IBBL client choose IBBL for their Shari`ah commitment, some choose for
their financial strength and some for the higher amount of single borrower exposure
limit.
Some interviewees (16.67%) argued that though religiosity is a principal reason for choosing
IBBL but clients are not aware of the actual Shari`ah performance. As a Muslim country,
most of the clients chose IBBL due to their devotion to Islam. One of the Client-6 argued
that:
Loyal customers and mass people have a deep-rooted regard for religious institutions.
Such fascination does not depend on knowledge rather based on emotion.
Hence, it is evident that, in addition to Shari`ah performance, some other factors also play an
influential role in making banking-decision with IBBL. Among others, interviewees
identified availability of branches (29.17%), trust & confidence for safe deposit (20.83%),
low service charges (20.83%), market position (16.67%), stability in financial performance
(12.50%), better customer services (8.33%), single borrowing exposure (8.33%), low profit
rate on investment (8.33%), first Islamic bank in Bangladesh, devoted employees, and
compliance with rules and regulations as the important reasons for selecting IBBL for
banking.
IBBL competitive advantage over their counterpart as the deposit is the blood of bank
business. Apart from these, because of Islamic Shari`ah compliance, IBBL does not
make any risky investments like as stock markets, so they are safe from lots of risks and
this low risk help them to do better than others.
An executive of a regulatory body (R-1) argued as under:
Yes, as I said before, the financial performance of IBBL is better because of the banks
following the Shari`ah law to the maximum extent possible. In recent times, banks in
Bangladesh are having a tough time with the huge amount of loan default and other
financial scams but IBBL, despite having millions of amount of deposit, the bank is not
lavish in expenditure, and they finance the industry complying almost with the Shari`ah
principle. That is why the banks fund is very unlikely to be used by defaulters and
frauds.
An executive of IBBL (IBBL-1) also recognized similar cause:
IBBL's deposit is very high due to people's Shari`ah preference, and the prudent
disbursement of those funds to different profitable as well as Shari`ah compliant
projects is the primary cause of IBBL's stable financial performance.
Apart from all interviewees, two clients opposed that customers of IBBL do not evaluate the
level of Shari`ah performance and hence it has no impact on financial performance of the
bank. Client-6 argued that:
I do not think so; devotees do not go to judge the depth of the Shari`ah compliance. Its
stability solely based on the loyal group and general belief of the common people
irrespective of performance.
As some of the interviewees mentioned other reasons for stability in the financial
performance of IBBL but most of these are originated due to its strict Shari`ah compliance.
For example, devotion is created among the employees because of evaluating their works in
the bank as Ibadah. Thus, employees perform their duties providing their best efforts.
Similarly, investment clients do not think of making any fraud as they believe that they have
to be accountable for this activity to Allah (SWT) on the Day of Judgment. Therefore, the
level of Shari`ah compliance can be recognized to be the main drivers for the financial
stability of IBBL.
Overwhelmed majority of the people do not judge the Shari`ah performance rather
socio-religious belief, loyalty, reference groups role are important. IBBL is more
professional than any other Islamic Banks irrespective of actual Shari`ah compliance.
Among others, the financial analyst emphasized on other factors for achieving recognized
financial performance, though he agreed that Shari`ah is the fundamental instinct for Islamic
banks. He argued:
Better financial performance depends not only on Shari`ah based banking but also on
good corporate governance, effective internal control systems, the effectiveness of risk
management systems, better customer services, application of latest and advanced
technologies.
Islamic banks get the additional favor of the clients because of Shari`ah performance
particularly in a Muslim majority country like Bangladesh. Endorsing the role of Shari`ah for
acquiring enhanced financial performance, an executive of a regulatory body (R-2)
emphasized that clients go to Islamic banks mostly to follow Islamic Shari`ah. So, if they
find any deviation from Shari`ah they do not like to stay with that bank. That is why the bank
that follows more Shari`ah gets better financial performance. Therefore, the high
momentum of clients provides IBBL a dramatic flow of expansion. As an executive (IBBL-2)
uttered: If the Islamic banks can prove that they are maintaining Shari`ah, then trust of the
people will grow which will lead to increase deposit, investment, and other banking
business. Shari`ah compliance guides IBBL not to be extravagant and avoiding
unnecessary cost and show-off- TB-2 added.
This study evaluated the significance of Shari`ah compliance on the financial performance of
IBBL, as a case. Ullah (2014) observed that IBBL is the most Shari`ah compliant Islamic
banks among the sample banks in Bangladesh, and the financial performance of IBBL is
better than most of the traditional and other Islamic banks in Bangladesh. Responses of the
interviewees revealed that people choose IBBL due to its level of Shari`ah compliance and
extent of Shari`ah compliance dominantly influence the bank in achieving the financial
stability. Though interviewees recognized other necessary factors affecting the financial
performance of IBBL, most of them argued that Shari`ah be the only disposition that makes
the bank unique.
The level of Shari`ah compliance of IBBL attracts new customers and helps the bank
flourishing its business. All the interviewee clients expressed that performing interest-free
banking is the prime reason for choosing Islamic bank. In this regard, almost all the
interviewed clients stated that better Shari`ah standing of the IBBL was the cause that
influenced their banking choice. Among the nine clients, seven clearly mentioned that IBBL
complies more Shari`ah rules than other Islamic banks in Bangladesh. Moreover, clients
thoroughly examined the level of Shari`ah compliance before banking with IBBL. In
particular, the clients did not consider financial performance in choosing IBBL though the
financial position of the bank is better than most of the banks in Bangladesh. However, the
fact the study revealed that the level of Shari`ah compliance, among others, is the most
vibrant cause for the better and stable financial performance of the sample bank. Almost all
the interviewees argued that IBBL follows Shari`ah more than other Islamic banks in
Bangladesh. Better Shari`ah standing of IBBL creates various advantages to IBBL resulting
better financial performance.
Shari`ah compliance creates lots of internal strengths and external opportunities that facilitate
the Islamic bank in achieving superior financial performance (please see Figure 1). Among
others, internal strengths include Accountability to Almighty of the directors, management,
and employees of the bank. Because of this accountability, all these people become aware of
the rights of parties concerned (Haq-qul-Ibad) particularly the employees and clients of the
bank. Appropriate policies and efficient management ensure the employee job satisfaction
that guarantees better customer services. In addition, continuous observation of the Shari`ah
supervisory board is a supplementary assurance of these accountabilities.
Figure 1: Shows the process Shari`ah compliance leads to outstanding financial performance
External
Opportunities
Shari`ah
Compliance
Financial
Performance
Internal
Strengths
Efficient Management
Employee Satisfaction
Better Customer
Services
Others
Deposit
Growth
Investment
Growth
Branch
Growth
ROA,
CAR,
ROE
Others
This paper expects to uphold the significance of Shari`ah in swelling the financial
performance of IBBL and simultaneously motivating the parties relating to Islamic banks in
enhancing the level of Shari`ah compliance. Moreover, this paper provides new insights into
the important of Islamic banks and their performance in relation to the choice of customers.
This study has been conducted in a Muslim-majority developing country but traditional
regulatory context. More studies may be conducted in a different context, e.g. developed
country, countries having Shari`ah law or separate Islamic banking law, to generalize the
findings of this study. Furthermore, evaluating the relationship between compliance with
Shariah and financial performance based on a qualitative method using interview responses
only is a challenging task where a quantitative approach supposed to suit best. Therefore,
further studies may be performed based on the quantitative approaches using financial
information of the Islamic banks.
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Interviewee Status
Financial Analyst
Regulator-1
Regulator-2
Regulator-3
IBBL Client-1
IBBL Client-2
IBBL Client-3
IBBL Client-4
IBBL Client-5
IBBL Client-6
IBBL Client-7
IBBL Client-8
IBBL Client-9
IBBL Employee-1
IBBL Employee-2
IBBL Employee-3
IBBL Employee-4
IB Employee-1
IB Employee-2
IB Employee-3
IB Employee-4
TB Employee-1
TB Employee-2
TB Employee-3
Appendix-1
Details of the interviewees
Position
Organization
Manager
R & R Hoq
Senior Officer
CSE
Deputy Director
BB
Asstt. Professor
BIBM
Associate Professor IIUC
Associate Professor IIUC
IT Professional
Toll, Australia
Associate Professor IIUC
Lecturer
IIUC
Asstt. Director
IIUC
Professor
IIUC
Associate Professor CU
Asst Professor
IIUC
Officer
IBBL
Principal Officer
IBBL
Senior Prin. Off.
IBBL
Senior Officer
IBBL
Senior Executive
EXIM
Senior Executive
EXIM
Executive Officer
EXIM
FAVP
EXIM
Principal Officer
PBL
Officer
DBBL
AVP
Jamuna Bank
Education
BBA, MBA, CA
BBA, MBA
BBA, MBA
BBA, MBA
BBA, MBA
M.Com, M.Phil
BSc, MSc
MBA, MPhil
BBA, MBA
BBA, MBA
MSc, MPhil, PhD
BBA, MBA
BBA, MBA
BBA, MBA
BBA, MBA, CDCS
BSc, MSc
BBA, MBA
BBA, MBA
BBA, MBA, ACMA
BBA, MBA
BBA, MBA
BBA, MBA
BBA, MBA
BBA, MBA
Age
34
35
36
39
40
43
40
42
35
38
46
40
36
32
36
41
37
39
37
39
40
36
37
39
Appendix-2
Questionnaire
For Customers:
1.
2.
3.
4.
5.
6.
Why did you choose an Islamic bank (not an interest-based bank) for banking activities?
Why did you choose IBBL, But NOT another Islamic bank?
Did you compare financial performance before choosing IBBL?
Did you compare the Shari`ah performance of the Islamic banks before choosing IBBL?
Why does financial performance of IBBL better than other banks in Bangladesh?
Do you think IBBL obeys Shari`ah more than other Islamic banks in Bangladesh? Why or
why not?
7. Do you think that people choose IBBL due to its Shari`ah performance? Why or why not?
8. Do you think the financial performance (stability) of IBBL is better due to its Shari`ah
performance? Why or why not?
9. More Shari`ah compliance leads to better financial performance Is it true for the Islamic
banks in Bangladesh?
Please send your reply to: hafij_1980@yahoo.com