Financial Assets and Liabilities of Islamic Banks under the IFRS Regime (A Case Study of CIMB Islamic and Maybank Islamic)

Abstract

Islamic banking faces a fundamental challenge in balancing its adherence to distinctive Shariah principles with the imperative of global financial integration and standardization, particularly concerning International Financial Reporting Standards (IFRS). This study addresses the concern that IFRS compliance might inadvertently violate Shariah principles. Using a practical lens, this research examines the financial statements of two prominent Malaysian Islamic banks, CIMB Islamic and Maybank Islamic, both operating under the IFRS framework. The study aims to ascertain the extent of their IFRS compliance, analyze their financial performance under this regime, and investigate the impact of crises on their liquidity. Finally, it provides recommendations to stakeholders, including the banks and the Malaysian government, regarding the implications of the IFRS framework for Islamic banking