An analysis of the role and competency of the Shari'ah Committees (SCs) of Islamic Banks and Financial Service Providers

IFSB’s Guiding Principles on Shari'ah Governance Systems for Institutions Offering Islamic Financial Services defines “Shari'ah governance system” as the set of institutional and organisational arrangements through which an institution offering Islamic financial services oversees Shari...

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Main Authors:	Hassan, Rusni, Ibrahim, Uzaimah, Abdullah, Nurdianawati Irwani, Abdul Aziz, Akhtarzaitie, Sawari, Fuad
Format:	Monograph
Language:	English
Published:	International Shari'ah Research Academy for Islamic Finance (ISRA) 2010
Subjects:	HG1501 Banking HG4001 Financial management. Business finance. Corporation finance. KBP174 Observances and practice of Islam KBP3526 Public finance
Online Access:	http://irep.iium.edu.my/5242/ http://irep.iium.edu.my/5242/1/research_paper_18-printing.pdf

id	iium-5242
recordtype	eprints
spelling	iium-52422011-12-27T01:25:19Z http://irep.iium.edu.my/5242/ An analysis of the role and competency of the Shari'ah Committees (SCs) of Islamic Banks and Financial Service Providers Hassan, Rusni Ibrahim, Uzaimah Abdullah, Nurdianawati Irwani Abdul Aziz, Akhtarzaitie Sawari, Fuad HG1501 Banking HG4001 Financial management. Business finance. Corporation finance. KBP174 Observances and practice of Islam KBP3526 Public finance IFSB’s Guiding Principles on Shari'ah Governance Systems for Institutions Offering Islamic Financial Services defines “Shari'ah governance system” as the set of institutional and organisational arrangements through which an institution offering Islamic financial services oversees Shari'ah compliance, i.e., that Islamic banking products and operations are in accord with Shari'ah principles. This requires the establishment of a Shari'ah advisory board. The Shari'ah governance of Islamic financial institutions (IFIs) in Malaysia consists of two components: the Shari'ah apex body, which is the Shari'ah Advisory Council (SAC) established by the Commission, and the Shari'ah advisors appointed by the respective institutions (Shari'ah Committees). Their roles are directing, reviewing, supervising and approving or rejecting the activities of IFIs in order to ensure compliance with Shari'ah rules and principles. The extent to which Islamic banks comply with Shari'ah principles is, to a great extent, determined by the role of such boards. Consequently, this body needs sufficient authority to enable its members to perform their functions effectively. However, many issues have arisen about the role and competency of Shari'ah advisors. This research aims to examine the current practice of Shari'ah advisory in Malaysia from the perspectives of advisors, bankers and regulators. The research focuses on the roles and functions practically played by the Shari'ah advisors and the IFIs’ expectations of them. Problems faced by the Shari'ah advisors, bankers and regulators need to be specifically identified so that measures to bridge the gaps between them may be proposed. This will ensure a harmonious relationship between all stakeholders as well as ensuring that the dayto-day running of IFIs will be compliant with Islamic law. International Shari'ah Research Academy for Islamic Finance (ISRA) 2010 Monograph NonPeerReviewed application/pdf en http://irep.iium.edu.my/5242/1/research_paper_18-printing.pdf Hassan, Rusni and Ibrahim, Uzaimah and Abdullah, Nurdianawati Irwani and Abdul Aziz, Akhtarzaitie and Sawari, Fuad (2010) An analysis of the role and competency of the Shari'ah Committees (SCs) of Islamic Banks and Financial Service Providers. Project Report. International Shari'ah Research Academy for Islamic Finance (ISRA), Kuala Lumpur.
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG1501 Banking HG4001 Financial management. Business finance. Corporation finance. KBP174 Observances and practice of Islam KBP3526 Public finance
spellingShingle	HG1501 Banking HG4001 Financial management. Business finance. Corporation finance. KBP174 Observances and practice of Islam KBP3526 Public finance Hassan, Rusni Ibrahim, Uzaimah Abdullah, Nurdianawati Irwani Abdul Aziz, Akhtarzaitie Sawari, Fuad An analysis of the role and competency of the Shari'ah Committees (SCs) of Islamic Banks and Financial Service Providers
description	IFSB’s Guiding Principles on Shari'ah Governance Systems for Institutions Offering Islamic Financial Services defines “Shari'ah governance system” as the set of institutional and organisational arrangements through which an institution offering Islamic financial services oversees Shari'ah compliance, i.e., that Islamic banking products and operations are in accord with Shari'ah principles. This requires the establishment of a Shari'ah advisory board. The Shari'ah governance of Islamic financial institutions (IFIs) in Malaysia consists of two components: the Shari'ah apex body, which is the Shari'ah Advisory Council (SAC) established by the Commission, and the Shari'ah advisors appointed by the respective institutions (Shari'ah Committees). Their roles are directing, reviewing, supervising and approving or rejecting the activities of IFIs in order to ensure compliance with Shari'ah rules and principles. The extent to which Islamic banks comply with Shari'ah principles is, to a great extent, determined by the role of such boards. Consequently, this body needs sufficient authority to enable its members to perform their functions effectively. However, many issues have arisen about the role and competency of Shari'ah advisors. This research aims to examine the current practice of Shari'ah advisory in Malaysia from the perspectives of advisors, bankers and regulators. The research focuses on the roles and functions practically played by the Shari'ah advisors and the IFIs’ expectations of them. Problems faced by the Shari'ah advisors, bankers and regulators need to be specifically identified so that measures to bridge the gaps between them may be proposed. This will ensure a harmonious relationship between all stakeholders as well as ensuring that the dayto-day running of IFIs will be compliant with Islamic law.
format	Monograph
author	Hassan, Rusni Ibrahim, Uzaimah Abdullah, Nurdianawati Irwani Abdul Aziz, Akhtarzaitie Sawari, Fuad
author_facet	Hassan, Rusni Ibrahim, Uzaimah Abdullah, Nurdianawati Irwani Abdul Aziz, Akhtarzaitie Sawari, Fuad
author_sort	Hassan, Rusni
title	An analysis of the role and competency of the Shari'ah Committees (SCs) of Islamic Banks and Financial Service Providers
title_short	An analysis of the role and competency of the Shari'ah Committees (SCs) of Islamic Banks and Financial Service Providers
title_full	An analysis of the role and competency of the Shari'ah Committees (SCs) of Islamic Banks and Financial Service Providers
title_fullStr	An analysis of the role and competency of the Shari'ah Committees (SCs) of Islamic Banks and Financial Service Providers
title_full_unstemmed	An analysis of the role and competency of the Shari'ah Committees (SCs) of Islamic Banks and Financial Service Providers
title_sort	analysis of the role and competency of the shari'ah committees (scs) of islamic banks and financial service providers
publisher	International Shari'ah Research Academy for Islamic Finance (ISRA)
publishDate	2010
url	http://irep.iium.edu.my/5242/ http://irep.iium.edu.my/5242/1/research_paper_18-printing.pdf
first_indexed	2023-09-18T20:13:44Z
last_indexed	2023-09-18T20:13:44Z
_version_	1777407648736477184

An analysis of the role and competency of the Shari'ah Committees (SCs) of Islamic Banks and Financial Service Providers

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