White Rose University Consortium logo
University of Leeds logo University of Sheffield logo York University logo

Sharia Supervisory Board in Islamic Banks: A Critical Analysis of the Current Framework

Al Amer, Saleh Abdulrahman (2018) Sharia Supervisory Board in Islamic Banks: A Critical Analysis of the Current Framework. PhD thesis, University of Leeds.

[img] Text
Sharia Supervisory Board in Islamic Banks A Critical Analysis of the Current Framework.pdf - Final eThesis - complete (pdf)
Restricted until 1 February 2024.

Request a copy


Sharia Supervisory Boards (SSBs) are established within the structure of Islamic financial institutions (IFIs) to ensure the credibility of sharia-compliance. In sharia governance, the SSB is the main tool which IFIs apply to be presumed as sharia-compliant. However, the insertion of this body into the internal structure of the corporation can prove challenging, as this body, with its powerful authority, is unknown to the structure of the corporation. The role of sharia supervision performed by SSBs requires a high level of independence, which is significantly compromised in its current structure. While many researchers have identified conflict of interests surrounding the structure of SSBs and proposed suggestions, this thesis rethinks the entire structure of SSBs to make them more consistent with the well-known corporate governance mechanisms. The thesis examines the nature of SSBs’ roles and concludes that these are more closely aligned to gatekeeping. More specifically, their roles are similar to those of external auditors, and so the SSBs should be structured as such. This requires a separation of the SSB’s roles to be reassigned to different institutions. Regarding the sharia standard-setting role, the thesis suggests establishing a national Sharia Standard-setting Board to be the exclusive authority for issuing sharia standards for the Islamic finance industry. This body should overcome the limitations existing within similar bodies in certain jurisdictions where SSBs are granted wide legislative authority. To assess the auditing roles of SSBs, the thesis analyses the accountability framework of sharia governance. It argues that sharia firms provide a better alternative for conducting independent external sharia auditing. Also, a regulatory authority needs to be implemented for more effective accountability and to serve the unique stakeholders of sharia-compliance. The thesis concludes by proposing an SSB-free model which promotes sharia supervision as a profession and so, in turn, the whole industry of Islamic finance.

Item Type: Thesis (PhD)
Keywords: Islamic finance, Islamic banking, sharia supervisory board, sharia governance, SSB-free
Academic Units: The University of Leeds > Faculty of Education, Social Sciences and Law (Leeds) > School of Law (Leeds) > Centre for Business Law and Practice (Leeds)
Depositing User: Mr. Saleh Al Amer
Date Deposited: 28 Jan 2019 09:54
Last Modified: 28 Jan 2019 09:54
URI: http://etheses.whiterose.ac.uk/id/eprint/22489

Please use the 'Request a copy' link(s) above to request this thesis. This will be sent directly to someone who may authorise access.
You can contact us about this thesis. If you need to make a general enquiry, please see the Contact us page.

Actions (repository staff only: login required)