Islamic Banking Disclosure: A Structured Integrative Review of Governance, Compliance, and Emerging Reporting Issues

Abstract

Islamic banking disclosure is a distinctive accountability mechanism because Islamic banks must explain both financial performance and compliance with Shariah principles. This study aims to synthesize how governance structures, regulatory frameworks, measurement approaches, and emerging reporting issues shape disclosure in Islamic banking. It applies a structured integrative literature review supplemented by descriptive bibliometric profiling to a curated corpus of 53 publications published between 2010 and 2025; 47 directly relevant studies were retained and coded according to theoretical mechanism, reporting framework, disclosure domain, measurement approach, organizational and governance determinants, consequences, and contextual conditions. The synthesis shows that Islamic banking disclosure is shaped by a dual accountability structure involving investors, depositors, investment account holders, Shariah boards, regulators, and wider society. The coexistence of AAOIFI standards, IFRS, and national regulation creates regulatory pluralism and uneven compliance across institutions and jurisdictions. Disclosure indices and content analysis dominate measurement, but binary scores frequently capture presence rather than depth, credibility, or decision usefulness. Bank size, age, ownership, board composition, Shariah Supervisory Board quality, leverage, listing status, and country institutions influence disclosure, although several relationships vary by disclosure type and setting. Higher disclosure is associated with financial performance, lower cost of capital, legitimacy, trust, satisfaction, and loyalty, while evidence on stock-price volatility and causal direction remains limited. The article develops a dual-accountability disclosure ecosystem linking institutional foundations and governance capacity to disclosure architecture, information attributes, and stakeholder outcomes. Future research should prioritize disclosure quality, Maqasid al-Shariah outcomes, climate accountability, integrated reporting, digital governance, and FinTech-related risks.