The Role of Applying Shariah Governance in Improving the Financial Performance of Islamic Banks - A Survey Study of the Opinions of a Sample of Employees in Islamic Bank Administrations and Auditors in The Kurdistan Region – Iraq

• Published in: Zanco Journal of Humanity Sciences Vol. 29; no. 3
• Main Authors: Barzan Hasan Ahmad, Blesa Nawzad kakarash
• Format: Journal Article
• Language: Arabic; English
• Published: Salahaddin University-Erbil 15.06.2025
• Subjects: Shariah governance, Shariah financial services council, Shariah supervisory bodies, financial performance, auditor
• ISSN: 2412-396X
• DOI: 10.21271/zjhs.29.3.7

The research aims to demonstrate the role of applying Shariah governance in improving the financial performance of Islamic banks. The importance of the research highlights the importance of applying Shariah governance as a basis for ensuring transparency and protecting the interests of stakeholders in Islamic banks. To achieve the research objective, the researchers relied on primary sources, namely the design of the questionnaire, which was designed based on previous studies and the theoretical aspect of the research. The questionnaire consists of two parts. The first part includes paragraphs aimed at identifying the characteristics of the research sample, and the second part includes (22) paragraphs that were used to collect data in order to test hypotheses and answer questions related to the research problem. The research sample members amounted to (49) individuals, including (24) employees in Islamic bank departments, (15) auditors, and (10) Chatered accountants in audit offices and companies. After analyzing the data using the statistical program (SPSS) and testing the research hypotheses, a set of results was reached, the most important of which are: A positive correlation was found between the independent variable Shariah governance through the dimension (Shariah Financial Services Board and Shariah Supervisory Boards) and the dependent variable financial performance, and the value of the correlation coefficient between them was (.639**), (.678**) respectively. This means that the application of Shariah governance leads to improving the financial performance in Islamic banks. In light of the research results, the researchers recommend a number of recommendations, the most important of which are: the necessity for Islamic banks to adopt the principles of Shariah governance and its approved standards, which enable them to manage the process of financial innovation.