Optimization the Role of Shariah Supervisory Board for Shariah Governance in Islamic Banking
Article Sidebar
Picture in here are illustration from public domain image or provided by the author, as part of their works
Published:
May 20, 2020
Keywords:
Islamic Banks, Supervisory Shariah Board, Shariah Governance, Good Governance
Main Article Content
Abstract
Many studies show that one of the biggest challenges in Islamic banking is related to lack of proper and effective Shariah governance. By focusing on the role of Shariah Supervisory Board (SSB), this paper attempts to extract some keys on how to achieve better performance and development of Islamic banking industry by reviewing previous studies. This study was done by using literature review approach. This study concludes that increasing the size of SSB, improving higher skills and competences of SSB members, keeping the independency of SSB member as well as the need of Central Shariah Board (CSB) and shariah auditor would affect to better performance of Islamic banking.
Article Details
Issue
Section
Articles
Copyright (c) 2020 Izzani Ulfi
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Abd Razak, A. H. (2018). Centralisation of corporate governance framework for Islamic financial institutions: Is it a worthy cause? ISRA International Journal of Islamic Finance, 10(1), 36–51.
Abdulazeem Abozaid. (2016). The internal challenges facing Islamic finance industry. International Journal of Islamic and Middle Eastern Finance and Management, 34(10).
Abdullah, M. F., & Rahman, A. A. (2017). Shari’ah governance of Islamic Banks in Bangladesh issues and challenges. Journal of Islamic Economics, Banking and Finance, 13(3), 82–94.
Abu-Tapanjeh, A. M. (2009). Corporate governance from the Islamic perspective: A comparative analysis with OECD principles. Critical Perspectives on Accounting, 20(5), 556–567.
Ahmad, M. R., & Al-Aidaros, A.-H. (2015). The Need of Independent Shariah Members in Islamic Cooperative Banks: An Empirical Study of Professional Accountants in Malaysia. International Review of Management and Business Research, 4(1), 110–120.
Ajili, H., & Bouri, A. (2018). Corporate governance quality of Islamic banks: measurement and effect on financial performance. International Journal of Islamic and Middle Eastern Finance and Management, 11(3), 470–487.
Alam, M. K., Ab Rahman, S., Mustafa, H., Shah, S. M., & Hossain, M. S. (2019). Shariah governance framework of islamic banks in bangladesh: Practices, problems and recommendations. Asian Economic and Financial Review, 9(1), 118–132.
Almutairi, A. R., & Qutainah, M. A. (2017). Corporate Governance : Evidence from Islamic Banks. Social Responsibility Journal.
Farag, H., Mallin, C., & Ow-Yong, K. (2018). Corporate governance in Islamic banks: New insights for dual board structure and agency relationships. Journal of International Financial Markets, Institutions and Money, 54, 59–77.
Grassa, R. (2013). Shariah supervisory system in Islamic financial institutions: New issues and challenges: a comparative analysis between Southeast Asia models and GCC models. Humanomics, 29(4), 333–348.
Grassa, R. (2015). Shariah supervisory systems in Islamic finance institutions across the OIC member countries. Journal of Financial Regulation and Compliance, 23(2), 135–160.
Hamza, H. (2013). Sharia governance in Islamic banks: effectiveness and supervision model. International Journal of Islamic and Middle Eastern Finance and Management, 6(3), 226–237.
Haridan, N. M., Hassan, A. F. S., & Karbhari, Y. (2018). Governance, religious assurance and Islamic banks: Do Shariah boards effectively serve? Journal of Management and Governance, 22(4), 1015–1043.
Islamic Financial Service Board. Guiding Principles on Shariah Governance Systems for Institutions Offering Islamic Financial Services (2009).
Jensen, M., & Meckling, W. (1976). Theory of the Firm: Mangerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 305–360.
Khalid, A. A., Haron, H., Sarea, A. M., & Masron, T. A. (2018). The role of shariah supervisory board on internal Shariah audit effectiveness: Evidence from Bahrain. Academy of Accounting and Financial Studies Journal, 22(5), 1–15.
Mansour, N., Thamar, N., & Hassan, R. (2016). Shari’ah Supervisory Board Characteristics Effects On Islamic Banks’ Performance : Evidence from Malaysia. International Journal of Bank Marketing.
Ng, T. W. H., & Feldman, D. C. (2009). How broadly does education contribute to job performance? Personnel Psychology, 62(1), 89–134.
Nomran, N. M., & Haron, R. (2020). Shari’ah supervisory board’s size impact on performance in the Islamic banking industry: An empirical investigation of the optimal board size across jurisdictions. Journal of Islamic Accounting and Business Research, 11(1), 110–129.
Noordin, N. H., & Kassim, S. (2019). Does Shariah committee composition influence Shariah governance disclosure?: Evidence from Malaysian Islamic banks.
Journal of Islamic Accounting and Business Research, 10(2), 158–184.
Ramly, Z., & Nordin, N. (2018). Sharia Supervision Board, Board Independence, Risk Committee and Risk-taking of Islamic Banks in Malaysia. International Journal of Economics and Financial Issues, 8(4), 290–300.
Sepky, M. (2015). Tingkat Kepatuhan Syariah di Lembaga Keuangan Syariah. Jurnal Akuntansi Dan Keuangan Islam, 3, No. 1(2015), 57–68.
Umam, K. (2015). Urgensi Standarisasi Dewan Pengawas Syariah dalam Meningkatkan Kualitas Audit Kepatuhan Syariah. Panggung Hukum, 1(2).
Abdulazeem Abozaid. (2016). The internal challenges facing Islamic finance industry. International Journal of Islamic and Middle Eastern Finance and Management, 34(10).
Abdullah, M. F., & Rahman, A. A. (2017). Shari’ah governance of Islamic Banks in Bangladesh issues and challenges. Journal of Islamic Economics, Banking and Finance, 13(3), 82–94.
Abu-Tapanjeh, A. M. (2009). Corporate governance from the Islamic perspective: A comparative analysis with OECD principles. Critical Perspectives on Accounting, 20(5), 556–567.
Ahmad, M. R., & Al-Aidaros, A.-H. (2015). The Need of Independent Shariah Members in Islamic Cooperative Banks: An Empirical Study of Professional Accountants in Malaysia. International Review of Management and Business Research, 4(1), 110–120.
Ajili, H., & Bouri, A. (2018). Corporate governance quality of Islamic banks: measurement and effect on financial performance. International Journal of Islamic and Middle Eastern Finance and Management, 11(3), 470–487.
Alam, M. K., Ab Rahman, S., Mustafa, H., Shah, S. M., & Hossain, M. S. (2019). Shariah governance framework of islamic banks in bangladesh: Practices, problems and recommendations. Asian Economic and Financial Review, 9(1), 118–132.
Almutairi, A. R., & Qutainah, M. A. (2017). Corporate Governance : Evidence from Islamic Banks. Social Responsibility Journal.
Farag, H., Mallin, C., & Ow-Yong, K. (2018). Corporate governance in Islamic banks: New insights for dual board structure and agency relationships. Journal of International Financial Markets, Institutions and Money, 54, 59–77.
Grassa, R. (2013). Shariah supervisory system in Islamic financial institutions: New issues and challenges: a comparative analysis between Southeast Asia models and GCC models. Humanomics, 29(4), 333–348.
Grassa, R. (2015). Shariah supervisory systems in Islamic finance institutions across the OIC member countries. Journal of Financial Regulation and Compliance, 23(2), 135–160.
Hamza, H. (2013). Sharia governance in Islamic banks: effectiveness and supervision model. International Journal of Islamic and Middle Eastern Finance and Management, 6(3), 226–237.
Haridan, N. M., Hassan, A. F. S., & Karbhari, Y. (2018). Governance, religious assurance and Islamic banks: Do Shariah boards effectively serve? Journal of Management and Governance, 22(4), 1015–1043.
Islamic Financial Service Board. Guiding Principles on Shariah Governance Systems for Institutions Offering Islamic Financial Services (2009).
Jensen, M., & Meckling, W. (1976). Theory of the Firm: Mangerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 305–360.
Khalid, A. A., Haron, H., Sarea, A. M., & Masron, T. A. (2018). The role of shariah supervisory board on internal Shariah audit effectiveness: Evidence from Bahrain. Academy of Accounting and Financial Studies Journal, 22(5), 1–15.
Mansour, N., Thamar, N., & Hassan, R. (2016). Shari’ah Supervisory Board Characteristics Effects On Islamic Banks’ Performance : Evidence from Malaysia. International Journal of Bank Marketing.
Ng, T. W. H., & Feldman, D. C. (2009). How broadly does education contribute to job performance? Personnel Psychology, 62(1), 89–134.
Nomran, N. M., & Haron, R. (2020). Shari’ah supervisory board’s size impact on performance in the Islamic banking industry: An empirical investigation of the optimal board size across jurisdictions. Journal of Islamic Accounting and Business Research, 11(1), 110–129.
Noordin, N. H., & Kassim, S. (2019). Does Shariah committee composition influence Shariah governance disclosure?: Evidence from Malaysian Islamic banks.
Journal of Islamic Accounting and Business Research, 10(2), 158–184.
Ramly, Z., & Nordin, N. (2018). Sharia Supervision Board, Board Independence, Risk Committee and Risk-taking of Islamic Banks in Malaysia. International Journal of Economics and Financial Issues, 8(4), 290–300.
Sepky, M. (2015). Tingkat Kepatuhan Syariah di Lembaga Keuangan Syariah. Jurnal Akuntansi Dan Keuangan Islam, 3, No. 1(2015), 57–68.
Umam, K. (2015). Urgensi Standarisasi Dewan Pengawas Syariah dalam Meningkatkan Kualitas Audit Kepatuhan Syariah. Panggung Hukum, 1(2).