scholarly journals An Investigation on Sharia Governance in Islamic Banking A Case of Islamic Banks in Oman

2021 ◽  
Vol 8 (7) ◽  
pp. 330-340
Author(s):  
Ziyad Juma Al-Musheifri
Keyword(s):  
Conceptual Framework ◽  
Islamic Law ◽  
Supervisory Board ◽  
Research Paper ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Legal Documents

The concept of Sharia governance in Islamic banks in Oman was highlighted by presenting the conceptual framework for Sharia governance and regulating the Islamic banks through Sharia governance. Finally, the study explains the role of Sharia governance in raising the efficiency of Islamic banks. As this research paper concluded that Sharia governance has a major role in Islamic banks, through the existence of a Sharia supervisory body on all transactions that take place inside these banks, which prevents the occurrence of any activities that violate the provisions of Islamic law, as happens in other banks. The Sharia Supervisory Board for Muzn is the highest authority in the bank with regard to all matters related to Islamic law. It ensures that the commission’s decisions are strictly followed. The Sharia Supervisory Board reviews product papers, structures, policies, and legal documents and all other tasks. The board also provides decisions based on Sharia in all matters and related banking issues, including opinion on all aspects of the bank's commitment to Islamic law. The findings indicated that Sharia governance laws must be applied by Islamic banks and they need to make updates through the SSB and AAOIFI boards. Sharia was found to be a regulatory and supervisory component that Islamic banks must operate under to ensure the religion has been applied within the establishment of the banks.  

scholarly journals Standard Quality Banking Services of Islamic Banks

2018 ◽  
Vol 8 (1) ◽  
pp. 301
Author(s):  
Haneen A. Al-Khawaja ◽  
Barjoyai Bardai
Keyword(s):  
Islamic Law ◽  
Theoretical Aspect ◽  
Islamic Banking ◽  
Islamic Banks ◽  
High Confidence ◽  
Banking Services ◽  
Standard Quality ◽  
Definition Of

This research discusses in detail the theoretical aspect of the quality standards of banking services of traditional Islamic banks. The criterion of "Shari'ah Compliance" was added by the researcher to the importance and role of dealing with Islamic banks, the definition of this standard and its importance, how to test it for banks as well as how, without the legitimate commitment of these banks to what is classified as Islamic from the foundation, we focus on the importance of the existence of a legal commitment to any Islamic bank to achieve the quality of Islamic banking services of high quality in accordance with Islamic law and laws to achieve a high confidence in the customers who belong to him and deal with his Conspiracy.

Sharia’h practice at Islamic banks in Pakistan

2018 ◽  
Vol 9 (3) ◽  
pp. 274-289
Author(s):  
Muhammad Tariq Majeed ◽  
Abida Zainab
Keyword(s):  
Risk Sharing ◽  
Banking Sector ◽  
Islamic Law ◽  
Banking Industry ◽  
Supervisory Board ◽  
Primary Data ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type

PurposeIslamic banks provide an alternative financial system based on Sharia’h (Islamic law). However, critics argue that operation at Islamic banks is violating Sharia’h particularly in terms of provision of interest free services, risk sharing and legal contract. The purpose of this paper is to empirically evaluate the Sharia’h practice at Islamic banks in Pakistan by considering some basic principles of Sharia’h. Design/methodology/approachPrimary data are collected from 63 branches of Islamic banks in Pakistan. Questionnaire is used as an instrument. The study uses structural equation modeling that includes confirmatory factor analysis and regression analysis. Data are codified and analyzed using SPSS and Amos. FindingsThis study finds that Islamic banks are providing interest free services, ensuring that transactions and contracts offered by Islamic banks are legal and offering conflict-free environment to customers. In contrast, estimated results expose that Islamic banks are not sharing risk and Sharia’h supervisory board is not performing its role perfectly. Similarly, it is found that organization and distribution of zakat and qard-ul-hassan are weak at Islamic banks. Research limitations/implicationsData are collected from Islamabad federal capital of Pakistan that hold just 5 per cent share of Islamic banking industry. This small share may not provide true picture of Islamic banking sector. Practical implicationsTo ensure risk sharing, Islamic banking industry must consider the development of new modes of financing and innovation of more products based on Sharia’h. State Bank of Pakistan should ensure separate regulatory framework that enable Islamic banks to provide qard-ul-hassan, organize and allocate zakat. Originality/valueThis paper discusses the perception of bankers, who are actually the executors, about Shariah’s practices at Islamic banks in Pakistan. There are not many discussions on this topic that could be found, and hence this could be considered as a significant contribution by this paper to the existing literature of Islamic finance.

scholarly journals Examining the role of sharia supervisory board attributes in reducing financial statement fraud by Islamic banks

2020 ◽  
Vol 15 (3) ◽  
pp. 106-116
Author(s):  
Indah Anisykurlillah ◽  
Prabowo Yudo Jayanto ◽  
Hasan Mukhibad ◽  
Umi Widyastuti
Keyword(s):  
Islamic Law ◽  
Control Mechanism ◽  
Supervisory Board ◽  
Ordinary Least Squares ◽  
Negative Influence ◽  
Financial Statement ◽  
Islamic Banks ◽  
Financial Statement Fraud ◽  
Research Findings

Sharia Supervisory Board (SSB) plays an important role in implementing Islamic law in Islamic banks, including fraud prevention. This ungodly act, also known as haram, is highly forbidden in Islam, as evidenced in the holy book of Al Qur’an. Therefore, this study was conducted to provide evidence on the role of SSB attributes (number of members, expertise, cross-membership, educational level, attendance of meeting, tenure) in preventing fraud. This study used 11 Islamic banks in Indonesia as research samples that were observed during 2014–2018. Data were analyzed using the ordinary least squares (OLS) method. The research findings from this study showed that the number of members, cross-membership, education level, attendance of meetings, and SSB tenure were not proven to reduce fraud. SSB’s expertise in accounting/finance had a negative influence on financial statement fraud. The implication of the study is that SSB’s expertise helps banks to effectively carry out their duties, namely detecting financial statement fraud. SSB acts as an independent control mechanism that states that all bank activities are in line with Islamic law and also avoid financial statement fraud.

Libyan Islamic Banks and their Importance in Achieving Development

2021 ◽  
Vol 1 (4) ◽  
pp. 1-31
Author(s):  
Ezzedin Mohammad Mansor Elammari
Keyword(s):  
Sustainable Development ◽  
Economic Development ◽  
Social Development ◽  
Financial Institutions ◽  
Islamic Law ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Investment Projects ◽  
Use Of Resources

This research paper seeks to highlight the role of Islamic banks in achieving development and its importance in Libya. These financial institutions are a humanitarian and social development message aimed at collecting funds and achieving the optimal use of resources in accordance with the rules and provisions of Islamic law to build an Islamic solidarity community, as well as employing money in investment projects that help achieve Economic and social development in Libya and thus achieving sustainable development through various Islamic financing formulas. This study reached a set of results, including that Islamic banking financing for economic projects is good and is increasing in recent times and that economic development is the goal of every country to develop its weak economy.

scholarly journals Dewan Pengawas Syariah Dan Pengungkapan Aspek Lingkungan, Produk Dan Jasa Pada Bank Syariah

2019 ◽  
Vol 4 (2) ◽  
pp. 169-181
Author(s):  
Ari Purwanti
Keyword(s):  
Annual Report ◽  
Supervisory Board ◽  
Social Reporting ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Test Results ◽  
Environmental Aspects ◽  
Board Meeting ◽  
Banking Services

This study aims to provide empirical evidence of the influence of the role of the Sharia Supervisory Board on the disclosure of environmental aspects and aspects of banking services product on Islamic banking in Indonesia based on Islamic Social Reporting in the annual report period 2013-2015. This study performed content analysis and simple regression. There are nine Islamic banks were selected in the study sample were tested. The results showed that the amount of the Sharia Supervisory Board has given a significant effect on the extent of disclosure of environmental aspects and also aspects of banking services products based on Islamic Social Reporting. However, the test results that show the influence of the frequency of the Sharia Supervisory Board meeting on the extent of disclosure of environmental aspects and aspects of banking products based Islamic Social Reporting that proved insignificant.

scholarly journals The System of Governance in Malaysia, and the Extent of its Effectiveness in Islamic Banks and their Windows in Algeria

2021 ◽  
Vol 4 (Special Issue) ◽  
pp. 75-103
Author(s):  
Mohamed Chourana ◽  
Sana Bensayah ◽  
Aghilas Kashi
Keyword(s):  
Civil Society ◽  
Central Bank ◽  
Islamic Law ◽  
Supervisory Board ◽  
Advisory Board ◽  
The Political ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Financial Industry ◽  
Governance System

This study aimed mainly at identifying the principles of governance in Islamic banks and measuring the extent to which these principles are applied in Islamic banks in Algeria, because what distinguishes Islamic banking is the existence of a Sharia supervisory board that looks at the activities and contracts that result from it. Islamic law as a reference for it in all items. Some countries, on top of them Malaysia, have established the Sharia advisory board at the level of the Central Bank of Malaysia, which is the authority empowered to verify the implementation of the provisions of Islamic law and its obligation in the work of Islamic banks Which represents the Sharia governance of Islamic banks. This research studies the extent to which the political administration provides the necessary infrastructure for the development of the emerging Islamic financial industry in Algeria in all fields, legal, sharia and Financial. Is it possible to establish a Sharia governance system with its controls and standards in the management of Islamic banks in Algeria, and to establish a central law for advisory and Sharia councils? And to what extent is the governance system considered and the extent of its effectiveness considered in Islamic banks, taking advantage of the Malaysian experience? Especially since Algerian Islamic banks do not have the confidence of civil society due to the absence of legitimate governance foundations in them.

scholarly journals A Quantitative Study of the Role Shariah Boards and Bank Ownership Structures Play in Enhancing the Financial Performance of Islamic Banks: A Case of Pakistan

ICR Journal ◽  
2020 ◽  
Vol 11 (2) ◽  
pp. 204-224
Author(s):  
Qaiser Abbas ◽  
Sheila Ainon Yussof ◽  
Muhammad Naeem Anjum
Keyword(s):  
Financial Performance ◽  
Supervisory Board ◽  
Islamic Banking ◽  
Central Feature ◽  
Islamic Banks ◽  
Membership Change ◽  
Supervisory Boards ◽  
Banking Institutions ◽  
Shariah Governance

Shariah governance is a central feature and the second layer of corporate governance for Islamic banks (IBs) and Islamic financial institutions (IFIs). Shariah governance is unique to IBs and IFIs due to their possession of Shariah Supervisory Boards (SSB). SSBs serve to ensure that the management of Islamic banking institutions complies with shariah principles. Shariah governance is not only designed to raise the confidence of investors and the public in terms of authenticity and compliance to Islamic banking practices, but also to minimise the fiduciary and reputational risks of Islamic banking institutions. Due to the importance of shariah governance and the role of SSBs in IBs, this research investigates the role of SSBs in influencing the financial performance of IBs with the moderation role of ownership structure in Pakistan. By using nine years of data (2009-2017) pertaining to three Islamic banks in Pakistan, we found that shariah supervisory board reputations, expertise, cross membership, change in composition, shariah qualification, and ownership have significant moderation relationships with the financial performance of IBs. This study is an attempt to provide a deeper understanding of the role of owners and Shariah Supervisory Boards in enhancing the financial performance of Islamic banks for both researchers and policymakers.

scholarly journals DRAMATURGY: RIBA ON HOME OWNERSHIP LOAN IN ISLAMIC BANKING (CASE STUDY ON BANK BTN SYARIAH KCPS CIPUTAT, TANGERANG SELATAN)

2021 ◽  
Vol 3 (1) ◽  
pp. 25
Author(s):  
Aulia Julian Faizatunazilla ◽  
Siti Jamilah
Keyword(s):  
Islamic Law ◽  
Home Ownership ◽  
Supervisory Board ◽  
Primary Data ◽  
Islamic Banking ◽  
Islamic Banks ◽  
The Public ◽  
Islamic Bank ◽  
Back Stage

The purpose of this study was to determine usury behavior in the Housing Loan or Credit in Islamic banks and to determine the application of the existing contract system in Housing Loans in Islamic banks using the dramaturgy method. The data used in this study is primary data, where researchers conducted interviews directly with the Bank BTN Syariah KCPS Ciputat, a member of the Sharia Supervisory Board and one of the customers who used a House Ownership Credit product at an Islamic bank. The results of this study can be concluded that the front stage that the bank shows to the public is in accordance with the back stage that the bank does not show to the public and Bank BTN Syariah KCPS Ciputat conducts its business in accordance with Islamic law and the fatwa of the National Sharia Council. So that in this study Bank BTN Syariah KCPS Ciputat does not have usury in its business.

scholarly journals Financial Engineering and Its Role in the Growth and Development of Islamic Banking in Palestine

2018 ◽  
Vol 10 (2) ◽  
pp. 64
Author(s):  
Amer S. Jaber
Keyword(s):  
Financial Engineering ◽  
Growth And Development ◽  
Supervisory Board ◽  
Modern Technology ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Supervisory Boards ◽  
Study Population ◽  
The Impact

The study aimed to identify the role of financial engineering in the growth and development of Islamic banking in Palestine; this is through the acknowledgment of the role of the Sharia Supervisory Board represented by the jurisprudential opinions on new Islamic products and tools. Moreover, the role of the regulations and instructions issued by the Palestine Monetary Authority (PMA) concerning Islamic banks. In addition to the impact of experience and employees’ training, as well as the impact of modern technology on the growth and development of Islamic banking in Palestine.The researcher used the analytical descriptive approach to reach conclusions and recommendations that can be generalized. The study population was employees working at Islamic banks in Palestine, who are (1049) employees. The sample for the study targeted 315 employees, which consists 30% of the total population. The tool used for the study was questionnaires distributed on the sample to collect preliminary data. The number of respondents was (258) employees which composes 81% of the sample.The study has reached many conclusions, and the following are the most important ones: The views of the Sharia Supervisory Board in the banks operating in Palestine play a major role in the growth and development of Islamic banking, while the other areas play a moderate role in the growth and development of Islamic banking in Palestine. The study recommended the need to spread the culture of electronic Islamic banking, and the need to update the regulations and instructions governing Islamic banking. In addition to the need for cooperation and coordination between the Sharia Supervisory Boards of the banks and the unified authority that is affiliated with the PMA.

دور الشريعة الإسلامية في ترسيخ مبادئ الحوكمة: مدى إلزامية الوعد في المصارف الإسلامية نموذجاً (The Role of Shariah in Consolidating the Principles of Governance: The Study of the Extent of Mandatory Promise in Islam)

2019 ◽  
Vol 16 (2) ◽  
pp. 137-165
Author(s):  
ميسون قوادري ◽  
عارف علي عارف ◽  
حسن بن إبراهيم الهنداوي
Keyword(s):  
Islamic Law ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Muslim Community ◽  
Community Members ◽  
Banking Institutions ◽  
Descriptive Approach ◽  
The Stability ◽  
Financial Transactions

يشهد العصر الراهن نموا معتبرا في حجم المؤسسات المصرفية الإسلامية؛ ما ترتب عنه زيادة الحاجة للاهتمام بأساليب التنظيم الإدارية والشرعية في هذه المؤسسات؛ لتحقيق أهدافها التي أنشأت من أجلها وتلبية رغبات أفراد المجتمع المسلمين وغير المسلمين ممن يرغبون في التعامل معها؛ لذا يأتي هذا البحث لبيان ماهية الحوكمة الشرعية في المصارف الإسلامية وعلاقتها بنظام هذه المؤسسات والتركيز على مبدأ الوفاء بالوعد وبيان مدى إلزاميته وعلاقته بمبادئ الحوكمة وذلك لإبراز السبق العلمي والدور الأساسي للشريعة الإسلامية في ترسيخ قواعد الحوكمة في جانب من جوانبها وأنها كفيلة باستقرار المعاملات بصفة عامة والمعاملات المالية بصفة خاصة بما تحويه من مبادئ سامية، وسينتهج البحث المنهج التحليلي لتحليل أقوال الفقهاء حول مسألة الوعد الملزم، والمنهج الوصفي لبيان مبادئ الحوكمة، وعلاقتها بمبادئ الشريعة الإسلامية السمحاء. الكلمات المفتاحيّة: الوعد، حكم الوعد، الحوكمة، مقاصد الشريعة الإسلامية، المصارف الإسلامية. Abstract The present epoch is witnessing a significant growth in the Islamic banking institutions, which has led to an increase of need of methods of administrative and legal in these institutions in order to achieve the objectives for which they were established and to meet the desire of Muslim and non-Muslim community members who wish to deal with them. Therefore, this study aims to discuss the essence of Islamic governance in Islamic banks and their relationship to the system of these institutions as well as to focus on the principle of fulfilling the promise and to show the extent of its mandatory and its relationship to the principles of governance. Hence, the study highlights the basic role of Islamic law in consolidating the principles of governance. These kind of principles securing the stability of transactions generally and financial transactions particularly, which containing exalted principles. This study used the analytical approach to analyze the statements of jurists on the issues of binding promise, as well as descriptive approach to explain the principles of governance and its relation to the principles of Islamic law. Keywords: Promise, Governance, The goal of Islamic laws, Islamic banks.

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