Grassa, Rihab,(2015), Shariah supervisory systems in Islamic finance institutions across the OIC member countries An investigation of regulatory frameworks. , Journal of Financial Regulation and Compliance, UNSPECIFIED
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Abstract
Purpose – This paper aims to discuss the different practices and regulatory frameworks of Shariah
supervision in Islamic Financial Institutions (IFIs) across Organisation of Islamic Cooperation (OIC)
member states and to identify the gaps in current Shariah supervisory practices. Parallel with the rapid
growth of Islamic finance worldwide, corporate governance has received a considerable amount of
attention in Islamic finance. Shariah is a unique characteristic of Islamic finance. That is why the need
for a good and efficient Shariah governance system for IFIs is considered to be a crucial requirement to
ensure the development and the stability of the Islamic finance industry.
Design/methodology/approach – The paper is based on critical review of current laws and
regulations for IFIs; this provides a reflective synthesis on the practical work of the Shariah supervisory
system across the 25 different OIC member states.
Findings – The paper reveals several findings. First, the authors observe a weak and poor Shariah
supervisory system in most OIC member states. Furthermore, the authors detect various gaps in the
current Shariah supervisory practices. Most of these shortfalls are linked to the current regulatory
frameworks: the roles and the responsibilities of the national Shariah authority, and the institutional
Shariah board’s duties and attributes.
Originality/value – This paper’s originality and value lies in its critical review of current Shariah
supervisory practices across 25 OIC member states. Also, the paper puts forward various suggestions
to the regulatory authorities and to the Islamic Financial Services Board to enhance the Shariah
governance system and to standardize the different practices of Shariah governance worldwide.
Keywords : | Regulation, Institutional Shariah board, Islamic financial institutions, National Shariah board, OIC member states, Shariah supervision, UNSPECIFIED |
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Journal or Publication Title: | Journal of Financial Regulation and Compliance |
Volume: | 23 |
Number: | 2 |
Item Type: | Article |
Subjects: | Ekonomi Islam |
Depositing User: | Users 15 not found. |
Date Deposited: | 26 Dec 2019 05:10 |
Last Modified: | 26 Dec 2019 05:10 |
URI: | https://repofeb.undip.ac.id/id/eprint/826 |