Norazlina Abd. Wahab

Towards developing service quality index for zakat institutions

Purpose This paper aims to present a conceptual model on service quality of zakat institutions that are responsible for collecting, managing and distributing zakat in Malaysia. Zakat is an Islamic religious “tax” charged on the rich and well-to-do members of the community for distribution to the poor and the needy as well as other beneficiaries based on certain established criteria according to the Qur’an. The main aim of zakat is to protect the socio-economic welfare of the poor and the needy. Design/methodology/approach The paper reviews and synthesizes the relevant literature on service quality. The paper then proposed a conceptual model to study the service quality of zakat institutions. Findings The paper identifies the appropriate methods to examine the extent of service quality of zakat institutions. Such evaluations are crucial for organizations like zakat institutions to function effectively to achieve the noble objectives of socio-economic justice through proper distribution of wealth. Originality/value This paper presents a conceptual model of service quality of zakat institutions which would be useful for further empirical research in this area. The findings are not only relevant and applicable to Malaysia but also to other Muslim countries.

HOW EFFICIENT WERE ISLAMIC BANKS DURING THE FINANCIAL CRISIS? EMPIRICAL EVIDENCE FROM ASIAN COUNTRIES

The aim of this study is to examine the efficiency of Islamic banks during and after the financial crisis, specifically in Asian countries from 2007 to 2011. This is evaluated using a non-parametric approach, in the form of a data envelopment analysis. The data was extracted from the BankScope database for the five-year period (2007-2011). The aim of this study is twofold firstly, it attempts to investigate sources of (in)efficiency in Asian Islamic banks during the recent financial crisis and the recovery period. Secondly, by using a Tobit regression analysis, it assesses the determinants of efficiency in the countries examined. An assessment of the efficiency levels of Islamic banks during the financial crisis and the recovery period, as well as within an international context, has policy ramifications for central banks in terms of enhancing the levels of efficiency and competitiveness of Islamic banks in the region. Accordingly, this will also help Islamic banks to weather future financial crises better and, in turn, improve their efficiency levels.