IMPACT OF SHARI’AH BOARD DISTINCT CHARACTERISTICS ON ISLAMIC BANK’S PERFORMANCE: A CASE STUDY OF PAKISTAN

Abstract

The aim of this research paper is to study the impact of different shari’ah board characteristics on the financial performance of the Islamic banks. To investigate the relationship between the shari’ah board’s characteristics and the bank performance, regression analysis is performed by using a panel data collected from 17 Islamic banks over the period of five years from 2015-2019. Six shari’ah board characteristics were selected as explanatory variables which are board size, qualification, expertise, affiliation, cross-membership and meetings. The results show that size, qualification, expertise and cross-memberships have a significant association with Islamic banks performance. However, the other two variables do not show any influence on the bank’s performance. This research paper is aimed to provide a new insight to the shari’ah board characteristics by analyzing data about Islamic banking of the Pakistani banks.