THE UNTOLD STORIES OF SHARIA BANKERS: A NARRATIVE INQUIRY INTO ETHICAL DILEMMAS IN ISLAMIC FINANCIAL INSTITUTIONS

Abstract

This study investigates the underexplored ethical tensions experienced by professionals within Islamic financial institutions through a narrative inquiry lens. By foregrounding the lived experiences of junior staff, senior executives, and compliance officers, it captures the subtle moral complexities that often remain hidden beneath institutional formalities. Drawing from in-depth, semi-structured interviews, the data were thematically analyzed using NVivo 14 software, which enabled a rigorous and systematic approach to coding and theme development. Five interrelated themes emerged from the narrative corpus: (1) structural tensions between Sharia principles and institutional imperatives, (2) normalization of moral silence, (3) religious rationalization of ethically questionable practices, (4) emotional strain and moral fatigue, and (5) emerging expressions of ethical agency. These themes reveal how Islamic bankers frequently navigate contradictions between personal faith-based convictions and organizational performance metrics, often leading to cognitive dissonance, emotional exhaustion, and ethical disengagement. Despite these challenges, the study also uncovers instances of micro-resistance and internal advocacy, indicating the presence of ethical reflexivity among practitioners. By highlighting these “untold stories,” the research contributes to a more nuanced understanding of Islamic business ethics, beyond procedural Sharia compliance. It calls for the development of governance frameworks that integrate ethical subjectivity and institutional accountability. This study offers both theoretical advancement in narrative-based ethics research and practical implications for enhancing ethical culture within Islamic financial institutions.