Vol.: 02 Issue: 01 & 02: Challenges and Solutions in Practicing Islamic Financial Management in Islamic Financial Institutions: A Secondary Research

Serajul Islam:

Ph.D. Associate Professor, Ph.D. Department of Business Administration, International Islamic University Chittagong

Zulfiqar Hasan:

Professor, Ph.D.,Department of Business Administration, City University, Bangladesh

Asmaul Husna Noha:

Lecturer,Department of Business Administration, International Islamic University Chittagong

Keywords

Islamic Financial Management (IFM), Islamic Financial Institution (IFI), Challenges and Solutions, Shariah Compliance, Technological Integration, Islamic Money Market.

JEL Classification:

G02, G28, G29, G32, G38, M15, O32

Abstract

This study explores the challenges and solutions in practising the Islamic financial management (IFM) in Islamic financial institutions (IFIs) in different countries based on a secondary research approach. Using keywords relating to the topic area, this study finds some challenges and solutions from previous studies. In this regard, the study searched the keywords in the Google scholar, which is the facilitator in getting respective research papers, books, reviews, chapters, and proceedings. The study finds that there are many challenges that include difficulty in measuring Shariah compliance risks, lack of employee dedication and poor monitoring, no mandatory auditing, confusion regarding Shariah supervisory committees (SSCs) and Shariah council, lack of awareness and local culture, lack of long-term financing and taxation, falsification and no central rules, lack of knowledge of Islamic finance, lack of technological integration and training, weak legal, regulatory and supervisory frameworks, absence of Islamic money or capital market, absence of supportive and link institutions, long-term financing. On the other hand, the study also provides some solutions to overcome the challenges that include similar rules and regulations, lack of monitoring, coordination, training, and government support. The implications, limitations, and future direction of the study are discussed.