Effect of Shari'ah Governance on Performance of Fully Fledged Islamic Banks in Africa


The performance of Islamic banks has seen an improvement throughout the last three decades; the great concern, however, is about Islamic banks’ adherence to Shari’ah guidelines and procedures. Despite the industry’s growth, Africa has not seen much progress even though they have a significant number of Muslim population. Therefore, the study intends to investigate how Shari’ah governance affects fully-fledged Islamic banks in the African continent using panel 28-Islamic banks between years of 2015 and 2020 and analyzed using STATA. The results demonstrate that the performance of Islamic banks is positively and considerably impacted by the size of the Shari’ah board and the Shari’ah audit committee. Nevertheless, the performance of Islamic banks is significantly adversely affected by board size. The findings also indicate that size and age of banks positively and significantly influence Islamic banks performance. This implies that Shari’ah guideline is no doubt vital and recommends Islamic Banks to make it of significance and center of focus.

Keywords: performance, Shari’ah governance, Islamic banks, Africa

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