Research Journal of Applied Sciences

Year: 2014
Volume: 9
Issue: 12
Page No. 952 - 961

Deriving Priorities on the Economic Objectives and Social Objectives of Islamic Banking: The Analytic Hierarchy Process (AHP) Approach

Authors : Karmila Hanim Kamil, Abdul Ghafar Ismail and S. Shahida

Abstract: Based on the Islamic economic philosophy, ethical considerations should play a vital role in shaping Islamic banking business conduct and priorities. While the pursuance of economic objectives such as profit maximization are also encouraged, it should be treated as an incentive in fostering the vital activities and moral obligations necessary to enhance the welfare of the public interests. Thus, the objectives of Islamic banking should be featured by the social welfare dimension that matched to the shari’ah concern on promoting the concept of justice (‘al-adl’) and welfare (‘al-ihsan’) in society. This study contributes a new approach in deriving the priorities on the economic and social objectives of Islamic banking from the point of views of practitioners and experts with particular attention to financial resource allocation. The findings of this study have shown differing judgements and opinions between the consideration of economic and social objectives in Islamic banking operations. This indicates that further consideration is needed by the decision makers in Islamic banking to minimize the gap between both objectives in the Islamic banking operations towards achieving the main purpose of the establishment of this holy business.

How to cite this article:

Karmila Hanim Kamil, Abdul Ghafar Ismail and S. Shahida, 2014. Deriving Priorities on the Economic Objectives and Social Objectives of Islamic Banking: The Analytic Hierarchy Process (AHP) Approach. Research Journal of Applied Sciences, 9: 952-961.

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