Shariah supervisory systems in Islamic finance institutions across the OIC member countries An investigation of regulatory frameworks

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

[thumbnail of Shariah supervisory systems in Islamic finance institutions . . ..pdf] Text
Restricted to Repository staff only

Download (116kB)


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
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

Actions (login required)

View Item
View Item