The impact of financial accounting on the Islamic banking system:

This abstract provides a concise overview of the impact of financial accounting on the Islamic banking system. Financial accounting plays a crucial role in shaping and influencing the Islamic banking industry by standardizing financial reporting practices, ensuring transparency, and providing reliable information to stakeholders. It enables Islamic banks to comply with regulatory requirements, adhere to Shariah principles, and accurately represent the financial impact of unique Islamic financial instruments. The adoption of sound financial accounting practices enhances investor confidence, attracts capital, and fosters the growth of the Islamic banking sector. It contributes to governance, internal control, and risk management within Islamic banks, promoting stability and resilience. Key performance indicators derived from financial accounting enable stakeholders to evaluate profitability, efficiency, and asset management, facilitating informed decision-making. Moreover, financial accounting research and development support the continuous improvement of financial reporting practices, ensuring their relevance and effectiveness in the ever-evolving Islamic banking landscape. Overall, financial accounting plays a vital role in promoting transparency, investor confidence, regulatory compliance, and sound financial management within the Islamic banking system.

Keywords:

financial , accounting , banking , indicators , Islamic financial