Chapter 6: Corporate Governance in Islamic Banks: Concepts and Cases from the Islamic Banking Industry of Pakistan

This chapter is specifically developed to make readers understand the corporate governance practices in Islamic Banks. Studies indicated that there is no difference in the purpose of corporate governance for Islamic and Conventional Banks. However, there is a substantial difference in the corporate governance structure for Islamic Banks compared to their counterparts. However, a lack of research and understanding of corporate governance practices in the Islamic banking industry is evident. Hence, there is a need for more studies and a thorough focus on research to develop better mechanisms required for corporate governance for Islamic Banks. Therefore, this chapter is written specifically regarding the elements of corporate governance of Islamic Banks. Moreover, the prime focus is to relate the elements of corporate governance with the banking industry of Asia and the Islamic banking industry of Pakistan. Thus, the overall significance of this study has multiple folds associated with better understanding and comprehensive research work but also for better policy-making for the governance mechanisms of Islamic Banks.