DEVELOPMENT OF AN INTEGRATED SOCIAL BANKING FRAMEWORK: A MAQASIDIC APPROACH

Junaidah  Abu Seman; Fauzias  Mat Nor; Syahidawati  Shahwan; Nurul Aini  Muhamed; Ainulashikin  Marzuki; Nur Ainna  Ramli; Nurul Syafiqah  Mohamad Nasir

doi:10.33102/iiecons.v10i1.113

Authors

Junaidah Abu Seman Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, 71800 Nilai, Negeri Sembilan
Fauzias Mat Nor Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, 71800 Nilai, Negeri Sembilan
Syahidawati Shahwan Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, 71800 Nilai, Negeri Sembilan
Nurul Aini Muhamed Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, 71800 Nilai, Negeri Sembilan
Ainulashikin Marzuki Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, 71800 Nilai, Negeri Sembilan
Nur Ainna Ramli Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, 71800 Nilai, Negeri Sembilan
Nurul Syafiqah Mohamad Nasir Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, 71800 Nilai, Negeri Sembilan

DOI:

https://doi.org/10.33102/iiecons.v10i1.113

Keywords:

Maqasid Shariah, sustainable development, social banking, Islamic bank

Abstract

Islamic banking should expand its scope beyond commercial banking and actively contribute to all levels of the community by offering products and services, utilizing effective distribution channels, and engaging in sustainable activities. Although Islamic banks are evaluated based on financial performance, there is a notable absence of a mechanism to assess their social impact on society. Presently, social themes related to Islamic banking are scattered across various sustainability agendas such as SDG, ESG, SRI, and CSR. This paper aims to develop an integrative framework that addresses and reconciles the fragmented aspects of Islamic social banking in line with the principles of Maqasid Shariah. This study employed a qualitative method which was conducted in two phases. In the first phase, content analysis was utilized to construct social themes under SDG, ESG, SRI, CSR, and Maqasid Shariah. In the subsequent phase, semi-structured interviews were conducted to gain input for the framework development. The integrated framework incorporates five (5) dimensions of Maqasid Shariah with corresponding thirteen (13) themes to measure Islamic banking practices. This framework has the potential to serve as a significant contributor to the development of comprehensive performance indicators for the effective implementation of social banking within the Islamic banking sector. Moreover, it plays a pivotal role in realizing the objectives outlined in Malaysia's Shared Prosperity Vision 2030.

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