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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:The impact of religion on management control system of Islamic and Islamised banks in Sudan
Author:Ahmed, Taha Eltayeb
Periodical:Savings and Development
Geographic term:Sudan
External link:https://www.jstor.org/stable/25830652
Abstract:A major change in Sudan's banking sector occurred in 1984 when the colonial penal code was abolished and replaced by an Islamic one. Interest became illegal and Western-type banks were ordered by the government to adopt Islamic banking mechanisms. In order to assess the effect of religion on management control systems, the author compared such Islamized banks with Islamic banks (those which chose of their own accord to operate according to Shariah), taking Elnilean as an example of the former and Faisal Islamic Bank of Sudan as an example of the latter. He found that religion affected the banks' organizational objectives, strategies, key success factors, structure, and investment mechanisms, and accordingly also their management control systems. The effects of religion were evident in the establishment of Shariah supervisory boards to audit banking practice; the recruitment, training, and evaluation of staff; the imperative delegation of investment decisions to lower managerial levels; and the rules and procedures governing investment operations. However, the impact differed as a result of the greater commitment to Islam on the part of the Islamic banks as compared to the legalistic compliance with government regulations on the part of the Islamized banks. Ann., ref., sum. in English and French.