Shariah practice in Islamic banking: A study of perception among employees at Bank Islam Malaysia Berhad

The perception among Islamic banking employee towards the implementation of shariah practice has been given less attention. Studies about the perception of Islamic banking were more focusing on the aspect of customers' understanding and satisfaction over choosing factor and the usage of offered Islamic banking products. In fact, the previous studies were found to have adapted qualitative approach in studies related to shariah practice. Thus, this study aims to explore the phenomenon of perception issues among employee of Islamic banking in reality and provide the outcomes. On top of that, this study is using the quantitative approach in order to capture the element of shariah practice of the employee in detailed based on the real perspectives that they have been going throughout their working experience. In the data collection process, 106 respondents consisting of employee working out at 6 different Bank Islam branches in Terengganu were chosen. The data collected from the questionnaire was analysed by using the software of Statistical Package for Social Science (Version 25) and smartPLS 3 for Partial Least Squares Structural Equation Modelling (PLS SEM) to determine the perception among employees towards shariah practice in Islamic banking. The finding shows that provision of interest free service and role of shariah supervisory board had significant determinants on the perception among employees toward shariah practice in Islamic banking. This study provides a better understanding of the perception among employees especially in Islamic banking industry. The study is important as Islamic banks have to operate in conformity with the principles of Shariah. It does not only give advantages to the Bank Islam management but also to the growth of Islamic banking industry as a whole.