Intellectual Capital Practices in ASEAN Islamic Banks

The ASEAN region's Islamic banking institutions' reporting policies on intellectual capital were discovered in this study. It is becoming more widely acknowledged that intellectual capital―which includes relational, structural, and human capital―is a strategic asset that enhances the viability and performance of Islamic banks. Given the growing importance and strategic role of Islamic banks, these institutions are expected to have strong intellectual capital based on knowledge and experience derived from Sharia. However, despite its significance, intellectual capital reporting has yet to become a consistent practice across Islamic banks in ASEAN. Using a qualitative descriptive methodology, this study looks at the annual reports of a number of the top Islamic banks in the area. The findings reveal considerable variability in intellectual capital disclosure, influenced by factors such as national regulations, bank size, and commitment to good governance. These results suggest the need for standardized intellectual capital reporting in the ASEAN Islamic banking sector to enhance transparency and global competitiveness. A unified reporting framework would promote greater clarity and accountability, ultimately strengthening the global position of Islamic finance.