Shariah Audit In-Regularities on Financial Performance of Islamic Banks

Given the increase of Islamic financial institutions across the world, it is integral to identify the significance and impact caused by its amalgamation of the improved financial performance of these banks. The primary objective of this research was to assess the Shariah audit in-regularities of Islamic banks in Pakistan. This was achieved using an exploratory study design. Qualitative interviews using a semi-structured approach were held with the 15 interviewees, who highlighted the different ways performance can be enhanced, and Shariah audit in-regularities can be adopted. The content analysis approach is used, which helps highlight that Islamic banks in Pakistan further require improvement as well as enhancement in their skill set. The absence of regulations and standards impacts the financial performance of Islamic banks in Pakistan, given their indulgence in the first-time established practices. Different procedures concerning the operations of the Islamic banks aimed at improving its style should be promoted. It suggests the integration of transparent practices, improved training, and the adoption of standardized policies for better financial performance in the Islamic banks in Pakistan. It also suggests that future researches could use different settings, designs, and samples for enhancing the research scope.