SOCIAL RESPONSIBILITY AND EFFICIENCY OF ISLAMIC FINANCIAL INSTITUTIONS

Abstract

Islamic finance is obtaining attention from the financial industry and academia. The growing of the Islamic financial assets and number of institutions despite the crises and global decline in economics sets the interest to the Shariah-compliant business model, efficiency and quality of institutions, and social component impacted on welfare needs of society. The purpose of the paper is to analyze the business model, efficiency, and quality of Islamic financial institutions, and their social responsibility advantages by using data of in-depth interviews with managers of the institutions, financial statements and reports of the institutions. The study’s estimations show the stable business model of Islamic financial organizations of the country, and high assets quality and stability to the crises. Furthermore, the social impact of these institutions creates the opportunity for assistance to the needy and socially vulnerable population of the country. 
Keywords:  Islamic finance, social responsibility, assets quality, efficiency.