Deriving priorities on the economic objectives and social objectives of islamic banking

The analytic hierarchy process (AHP) approach

Karmila Hanim Kamil, Abd. Ghafar Ismail, Shahida Shahimi

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Based on the Islamic economic philosophy, ethical considerations should play a vital role in shaping Islamic banking business conduct and priorities. While the pursuance of economic objectives such as profit maximization are also encouraged, it should be treated as an incentive in fostering the vital activities and moral obligations necessary to enhance the welfare of the public interests. Thus, the objectives of Islamic banking should be featured by the social welfare dimension that matched to the shari'ah concern on promoting the concept of justice ('al-adl') and welfare ('al-ihsan') in society. This study contributes a new approach in deriving the priorities on the economic and social objectives of Islamic banking from the point of views of practitioners and experts with particular attention to financial resource allocation. The findings of this study have shown differing judgements and opinions between the consideration of economic and social objectives in Islamic banking operations. This indicates that further consideration is needed by the decision makers in Islamic banking to minimize the gap between both objectives in the Islamic banking operations towards achieving the mam purpose of the establishment of this holy business.

Original languageEnglish
Pages (from-to)952-961
Number of pages10
JournalResearch Journal of Applied Sciences
Volume9
Issue number12
DOIs
Publication statusPublished - 2014

Fingerprint

Analytic hierarchy process
hierarchies
economics
Economics
resource allocation
incentives
Resource allocation
Industry
Profitability

Keywords

  • Analytic Hierarchy Process (AHP)
  • Financial resource allocation
  • Islamic banking objectives
  • Justice
  • Welfare

ASJC Scopus subject areas

  • General
  • Engineering(all)

Cite this

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