Disclosure and Accountability in Islamic Banking

Dear Colleagues,

Recent shortcomings in environmental, social, and governance areas have triggered several initiatives by the United Nations, notably the sustainable development goals (SDGs). A key concern in current Islamic financial discussions is aligning these initiatives with the ethical principles of Islam and Shariah. Islamic financial institutions (IFIs) have not yet met the standards for achieving significant social and economic development. To fulfil Shariah obligations more effectively, IFIs must adopt a proactive stance and integrate these ethical goals into their business models and policymaking processes. Additionally, a comprehensive framework is essential for Shariah boards that align with the SDGs, guiding the conduct of financial transactions within an Islamic economic context system.

This Special Issue aims to expand our knowledge and understanding of the Shariah Supervisory Board’s (SSB) role on financial, social, and Shariah disclosure. Shariah principles are used as the primary basis for bank operations, emphasizing that information is disclosed to all stakeholders. This form of accountability can be presented by presenting broader information disclosure, i.e., the disclosure of information on social, financial, environmental, and Shariah compliance performance. Therefore, there is a need to expand this disclosure, which is not limited to the disclosure of corporate social responsibility (CSR). Islamic finance needs to shift its financial strategy to provide access to all segments of society, aiming to enhance wealth distribution, equality, and social mobility. This can be achieved by integrating innovative products that effectively boost financial inclusion, improve intermediation, lower the risks faced by the poor, and ultimately support broader economic stability and development. This Special Issue will explore how Islamic financial institutions and their SSBs can improve disclosure practices to foster transparency and accountability.

The evolving landscape of Islamic banking and finance in academic research demands new approaches, observations, and the generation of a hypothesis that integrates textual analysis and narrative disclosures.

This Special Issue will provide a comprehensive overview of the scientific background, outlining the evolution of corporate disclosure and accountability and their growing significance in Islamic institutions and their Shariah boards.

The aim is to bridge the gap between innovative business practices, textual analysis, and disclosure requirements to strengthen SDG accountability mechanisms. We will explore how SSBs, through their disclosure practices, can significantly contribute to the sustainable development goals of Islamic institutions.

We welcome submissions related, but not limited, to the following themes:

• Shariah scholars’ perspectives on the SDGs.
• Challenges the SDGs pose to IFIs.
• The potential role of the SSB concerning developing new sustainable Islamic finance products.
• The evaluation of Islamic disclosures related to SSBs’ activities.
• The ethical and social implications of Islamic financing.
• Raising awareness and inspiring practical action regarding IFIs and the SDGs.
• Shariah-compliant ESG engagement for responsible investment.
• Green takaful products as sustainable forms of risk protection.
• Green Sukuks as sustainable instruments for infrastructure projects.

This Special issue welcomes original research articles and reviews, offering diverse perspectives and insights into the sustainable development goals. Contributors are encouraged to explore interdisciplinary approaches, enhancing our understanding of sustainable business practices in a rapidly changing world.

We look forward to receiving your contributions.

Dr. Umair Riaz
Guest Editor

Manuscript Submission Information

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• SDGs
• Shariah supervisory boards
• Islamic financial institutions
• green finance