International comparison of Shari’ah governance guidelines: AAOIFI, IFSB and BNM

Issue of the corporate governance has emerged with the birth of the corporation. However, it became an attractive issue due to the financial crisis. Similarly, the issue of Shari’ah compliance in Islamic finance is given the attention when the Islamic finance industry arose. Therefore, renowned inte...

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Main Authors:	Kasim, Nawal, Htay, Sheila Nu Nu, Syed, Ahmed Salman
Format:	Conference or Workshop Item
Language:	English English
Published:	2013
Subjects:	HG1501 Banking HG178 Liquidity
Online Access:	http://irep.iium.edu.my/32893/ http://irep.iium.edu.my/32893/1/International_Comparison_of_Shariah_governance_guidelines_%281%29_14_Sept2013.pdf http://irep.iium.edu.my/32893/6/International.pdf

id	iium-32893
recordtype	eprints
spelling	iium-328932013-12-04T07:52:16Z http://irep.iium.edu.my/32893/ International comparison of Shari’ah governance guidelines: AAOIFI, IFSB and BNM Kasim, Nawal Htay, Sheila Nu Nu Syed, Ahmed Salman HG1501 Banking HG178 Liquidity Issue of the corporate governance has emerged with the birth of the corporation. However, it became an attractive issue due to the financial crisis. Similarly, the issue of Shari’ah compliance in Islamic finance is given the attention when the Islamic finance industry arose. Therefore, renowned international organizations such as Accounting, Auditing Organization for Islamic Financial Institutions (AAOIFI) and Islamic Financial Services Board (IFSB) have provided the Shari’ah governance guidelines. In addition, Bank Negara Malaysia (BNM) has laid down the similar guideline. However, to our knowledge, there is no research has been conducted in comparing these guidelines. In our opinion, it is necessary to compare them in order to find out whether there is any variation among the suggestions given by the guidelines. Therefore, the purpose of this paper is to make a comparison among these Shari’ah governance guidelines and to propose the most comprehensive elements to be included in the Shari’ah governance guideline. It has been found that Shari’ah governance framework provided by AAOIFI has seven sections which discussed the Shari’ah Supervisory Board, Shari’ah review, Internal Shari’ah review, audit and governance committee, statement on governance principles corporate social responsibility conduct and disclosure. In the case of IFSB, the framework includes scope and approach of Shari’ah governance system, how to use the framework and the qualitative characteristics of Shari’ah Supervisory Committee. BNM provides the general requirements of the framework and qualitative characteristics which are similar to the IFSB and in addition, it also provides the guidelines on Shari’ah review and Shari’ah audit which are also similar to AAOIFI. BNM further provides the guideline on the functions of Shari’ah risk management and Shari’ah research in Islamic finance. 2013-10 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/32893/1/International_Comparison_of_Shariah_governance_guidelines_%281%29_14_Sept2013.pdf application/pdf en http://irep.iium.edu.my/32893/6/International.pdf Kasim, Nawal and Htay, Sheila Nu Nu and Syed, Ahmed Salman (2013) International comparison of Shari’ah governance guidelines: AAOIFI, IFSB and BNM. In: International Conference on Islamic Finance Muamalat and Financial Criminology (IFMFC), 23-24 Oct 2013, Grand Caprice FRestaurant, Lim Ket Kai Centre, Cagayan de Oro City, Philippines. (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HG1501 Banking HG178 Liquidity
spellingShingle	HG1501 Banking HG178 Liquidity Kasim, Nawal Htay, Sheila Nu Nu Syed, Ahmed Salman International comparison of Shari’ah governance guidelines: AAOIFI, IFSB and BNM
description	Issue of the corporate governance has emerged with the birth of the corporation. However, it became an attractive issue due to the financial crisis. Similarly, the issue of Shari’ah compliance in Islamic finance is given the attention when the Islamic finance industry arose. Therefore, renowned international organizations such as Accounting, Auditing Organization for Islamic Financial Institutions (AAOIFI) and Islamic Financial Services Board (IFSB) have provided the Shari’ah governance guidelines. In addition, Bank Negara Malaysia (BNM) has laid down the similar guideline. However, to our knowledge, there is no research has been conducted in comparing these guidelines. In our opinion, it is necessary to compare them in order to find out whether there is any variation among the suggestions given by the guidelines. Therefore, the purpose of this paper is to make a comparison among these Shari’ah governance guidelines and to propose the most comprehensive elements to be included in the Shari’ah governance guideline. It has been found that Shari’ah governance framework provided by AAOIFI has seven sections which discussed the Shari’ah Supervisory Board, Shari’ah review, Internal Shari’ah review, audit and governance committee, statement on governance principles corporate social responsibility conduct and disclosure. In the case of IFSB, the framework includes scope and approach of Shari’ah governance system, how to use the framework and the qualitative characteristics of Shari’ah Supervisory Committee. BNM provides the general requirements of the framework and qualitative characteristics which are similar to the IFSB and in addition, it also provides the guidelines on Shari’ah review and Shari’ah audit which are also similar to AAOIFI. BNM further provides the guideline on the functions of Shari’ah risk management and Shari’ah research in Islamic finance.
format	Conference or Workshop Item
author	Kasim, Nawal Htay, Sheila Nu Nu Syed, Ahmed Salman
author_facet	Kasim, Nawal Htay, Sheila Nu Nu Syed, Ahmed Salman
author_sort	Kasim, Nawal
title	International comparison of Shari’ah governance guidelines: AAOIFI, IFSB and BNM
title_short	International comparison of Shari’ah governance guidelines: AAOIFI, IFSB and BNM
title_full	International comparison of Shari’ah governance guidelines: AAOIFI, IFSB and BNM
title_fullStr	International comparison of Shari’ah governance guidelines: AAOIFI, IFSB and BNM
title_full_unstemmed	International comparison of Shari’ah governance guidelines: AAOIFI, IFSB and BNM
title_sort	international comparison of shari’ah governance guidelines: aaoifi, ifsb and bnm
publishDate	2013
url	http://irep.iium.edu.my/32893/ http://irep.iium.edu.my/32893/1/International_Comparison_of_Shariah_governance_guidelines_%281%29_14_Sept2013.pdf http://irep.iium.edu.my/32893/6/International.pdf
first_indexed	2023-09-18T20:47:30Z
last_indexed	2023-09-18T20:47:30Z
_version_	1777409773499580416

International comparison of Shari’ah governance guidelines: AAOIFI, IFSB and BNM

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