Download Free Analysis On Shariah Governance Structure Of Islamic Banking And Finance In Malaysia Indonesia And Kuwait Book in PDF and EPUB Free Download. You can read online Analysis On Shariah Governance Structure Of Islamic Banking And Finance In Malaysia Indonesia And Kuwait and write the review.

Shari'ah board plays an essential role in shari'ah governance structure of Islamic banking and finance. This board is responsible to ensure that Islamic financial activities are shari'ah compliant. Basically, in establishing shari'ah governance structure, several approaches are identified to be adopted by different countries which include the centralised approach, self-regulatory approach and other approaches. However, this research will be focusing only on Malaysia, Indonesia and Kuwait which adopted the centralised approach in developing their shari'ah governance structure. The importance of shari'ah governance and its implementation in these three countries are also explored and discussed by the researcher. Malaysia requires the establishment of Shariah Advisory Council and Shariah Committee under the supervision of the Central Bank of Malaysia. On the other hand, the National Shariah Board in Indonesia is a non-government organisation which issues fatwa on shari'ah matters and the Sharia Supervisory Board is the term used for those scholars who are appointed in Islamic financial institutions. As for Kuwait, the final authority in deciding on matters relating to Islamic financial business is vested upon the Fatwa Board in the Ministry of Awqaf and Islamic Affairs which is a separate entity from the Central Bank of Kuwait. However, the Shariah Supervisory Board in Islamic banks is governed by the Central Bank of Kuwait. The research concluded that the shari'ah board is indeed significant to establish good shari'ah governance in Islamic financial institutions by practising shari'ah compliant activities in accordance with the shari'ah.
There are different Shariah governance structures adopted by Islamic Financial Institutions across the globe. Several approaches are identified such as the centralised approach, self-regulatory approach and other approaches. This research focuses on the practice of three countries that are Malaysia, Indonesia and Kuwait which adopted the centralised Shariah governance structure. Regardless of the similar countries' approach as regard to the centralized aspects of the Shariah governance, but there are some differences in their applications. Malaysia's central body on Shariah governance is the Shariah Advisory Council under the supervision of the Central Bank of Malaysia; but the central Shariah governance body in Indonesia is a non-government organization that is independent from the Central Bank. On the other hand, the Kuwait's central Shariah governance body is the Fatwa Board in the Ministry of Awqaf and Islamic Affairs which is a separate entity from the Central Bank of Kuwait.
An in-depth and insightful study of Shari'ah governance from a theoretical and practical perspective
A practical guide for robust sharī'ah governance of the Islamic banking industry Debate in the market on the extent of sharī'ah compliance of Islamic banks, their products, and activities has piqued stakeholders' interest. In Foundations of Sharī'ah Governance of Islamic Banks, Karim Ginena and Azhar Hamid explore the depths of sharī'ah governance to unravel its mysterious dimensions, and equip academics and practitioners with a solid understanding of the subject, which has become a serious challenge and thus deserves dedicated attention. The authors make a strong case for the need to contain the sharī'ah risk that Islamic banks experience, and present a compelling argument for how this should be done. Ginena and Hamid propose a robust sharī'ah governance model that comprehensively tackles thisrisk, and helps improve the extent of sharī'ah compliance of market players. The authors detail the internal, external, and institutional arrangements needed to promote responsible sharī'ah governance, and critically analyze current laws, regulations, and industry practices on the topic. The chapters of the book do the following: Examine the roots, characteristics and objectives of sharī'ah and its relation to financial dealings; Probe the role of regulators in sharī'ah governance, explore the different approaches adopted by banking supervisors, and provide examples of relevant legal and regulatory measures; Explain to bank directors and management the fiduciary duty they assume with respect to sharī'ah compliance, and detail how they could discharge this responsibility in line with best practices; Elaborate on the purpose of the Sharī'ah Supervisory Board (SSB), its responsibilities, competence criteria, internal regulations, and key governance guidelines; additionally, they explore different SSB models; Describe the internal sharī'ah control system including its six components, and examine the internal sharī'ah audit function as well as different stages of conducting a sharī'ah audit; Clarify the role of a sharī'ah auditor, with guidance on reporting lines, scope of duties, authority, and practical ways on fulfilling tasks, such as a sample sharī'ah risk assessment grid and audit checklists; Discuss the newly emerging external sharī'ah advisory firms that are expected to play a key role in the coming years and the services they provide. Through an effective treatment of each of these elements, and the way that they interact with one another, the book offers a fresh take on how robust sharī'ah governance of Islamic banks can be successfully accomplished. It is a comprehensive resource for academics, regulators, directors, lawyers, auditors, consultants, employees, and customers of Islamic banks interested in learning more about these challenges. This essential reading persuasively extends the discourse on the subject and addresses critical sharī'ah issues that have policy implications for decision makers in jurisdictions aiming to attract the fast-growing Islamic finance industry or increase their market share.
In Towards a Post-Covid Global Financial System a team of experts explore how COVID-19 has affected the most vulnerable parts of the global economy; how it has been met by Islamic banking and finance; and how the principles of Islamic social finance could be used to have a fairer, more resilient Islamic finance system for all.
Abstract: The structures and processes established within an institution offering Islamic financial Services (IIFS) for monitoring and evaluating Shariah compliance rely essentially on arrangements internal to the firm. By being incorporated in the institutional structure, a Shariah supervisory board (SSB) has the advantage of being close to the market. Competent, independent, and empowered to approve new Shariah-conforming instruments, an SSB can enable innovation likely to emerge within the institution. The paper reviews the issues and options facing current arrangements for ensuring Shariah compliance by IIFS. It suggests a framework that draws on internal and external arrangements to the firm and emphasizes market discipline. In issuing its fatwas, an SSB could be guided by standardized contracts and practices that could be harmonized by a self-regulatory professionals' association. A framework with the suggested internal and external features could ensure adequate consistency of interpretation and enhance the enforceability of contracts before civil courts. The review of transactions would mainly be entrusted to internal review units, which would collaborate with external auditors responsible for issuing an annual opinion on whether the institution's activities has met its Shariah requirements. This process would be sustained by reputable entities such as rating agencies, stock markets, financial media, and researchers who would channel signals to market players. This framework would enhance public understanding of the requirements of Shariah and lead to more effective options available to stakeholders to achieve improvements in Islamic financial services.
This volume highlights a vital developmental stage of Islamic Banking and Finance, focusing on regulatory aspects, regional case studies and International Financial Crisis impacts. It aims to help decision makers identify key factors for the real, sustained development of the Islamic Banking System, nationally, regionally and internationally.
Shariah governance assumes the primary instrument through which Islamic Banking Institutions (IBIs) ensure the Islamicity of their products, services, operations, and internal environments. It is considered to be one the fundamental elements that differentiates IBIs from their traditional counterparts. Shariah Governance in Islamic Banking Institutions provides a critical overview of the key aspects pertaining to Shariah governance within Islamic financial institutions and presents a detailed analysis of its conceptual background. The authors have identified the unique issues that have emerged due to the integration of Shariah, namely the involvement of the Shariah supervisory board (SSB), in the corporate governance arrangements of Islamic banks. These issues relate to disclosure, transparency, independency, consistency, confidentiality, competency, and reputation. The book details the doctrines of Shariah pronouncements in Islamic banks, the importance of having a central advisory board at a regulatory level in the standardization of Islamic banking practices, as well as the competence required for Shariah supervisory board members. It provides a critical analysis of the Shariah governance framework in Pakistan and introduces the authors’ vision of an ideal Shariah governance framework. Furthermore, the chapters offer guidance in promoting effective policies for improving Shariah governance. This is one of the core challenges facing Islamic banks, namely, to ensure compliance with faith and provide legitimacy to the business of IBIs, and as such, the book will appeal to both the research and professional communities.
Written by a group of prominent shari'ah scholars, academics and practitioners in the field of Islamic finance, this book contains 17 in-depth case studies of shari'ah governance practices and experiences as well as critical analysis of these practices. It serves as a standalone comprehensive reference work on shari'ah governance, containing an overview of its Islamic legal foundations, its evolution and development over the years, current practices and debates on shari'ah governance standards and future prospects for shari'ah governance in the global Islamic finance market.
Research in Corporate and Shari'ah Governance in the Muslim World: Theory and Practice aims to address a critical disciplinary gap between Islamic theory and the practice of the corporate sector in the Muslim World. Adopting a critical approach, the book sheds light on the impact of corporate governance on the economies of the Muslim world.