Sustainability Key Performance Indicators in Islamic Banking Sectors of Malaysia and Pakistan: A Scale Based Evidence.
Haseeb Ur Rahman, Muhammad Zahid, Muhammad Asif, Zabeeh Ullah
Published Online: June 2020
The marvelous development in the Islamic banking necessitates sustainable practices in the emerging industry. This study intends to ascertain the most followed or usual sustainability key performance indicators (KPIs) in the Islamic banking industry of Malaysia and Pakistan. For developing the sustainability KPIs index, the study follows the systematic steps as highlighted by prior such studies. The index composed of 109 items in 7 main sections of sustainability reporting adapted to collect data through content analysis for 21 Islamic banks from both the countries for the year 2016. Despite significant heterogeneity among the Islamic banks of the two countries, it is found that they show good compliance with the sustainability indicators. Though the Islamic banking industry of Pakistan is small than that of Malaysia, but still it is good in reporting sustainable practices except for environment and product responsibility, where the latter has an edge over the former. The study contributes a theoretical deliverable i.e. sustainability KPIs index for the Islamic banking industry through testing it with data from 21 Islamic banks from Malaysia and Pakistan. The findings could be significant for practitioners, regulators, policymakers, and especially the Islamic banking industry of both countries.
Sustainability, Key Performance, Indicators, Reporting Index, Malaysia, Pakistan.