| dc.description.abstract | Conversion of conventional banks to Islamic banks started in the financial industry of
a few countries in the 1990s. Each conversion went through their own method suiting
their environment, ecosystem and having their own success story. References are
limited, and some achievements are not openly shared with the industry for guidance.
The guidelines from regulators and standard-setting bodies such as Basel and AAOIFI
are also limited and insufficient. Furthermore, Shari’ah scholars are not equipped with
the exposure, training and Shari’ah references to assist the industry. The expectation
from stakeholders is for the converted institution to comply with all the elements at all
stages of conversion until completion. Operational issues are not limited to products,
corporate governance, legal, accounting and Shari’ah only. Conversion from
conventional to Islamic operation is not as easy as changing terminology, basic
documentation, and governance. The converted institution will have to comply end to
end, either by stages or a total, sudden transformation. This research will highlight
issues related to the banking operational process from the abovementioned
perspectives. The findings will assist interested stakeholders to be aware of the
operational issues and approach their conversion initiative with more realistic
expectations. This research will also serve as the raw checklist for references in
conversion initiatives. The sequence to be discussed should not be considered as the
absolute checklist but, rather, the minimum components for addressing individual basic
needs, circumstances, jurisdictions and stakeholders’ wishes. The proposed steps are
also important elements that one must consider tabling as process components where
detailed guidelines are not available. | en_US |
