اسلامی بنکوں میں شریعہ ایڈوائزری: ایک تجزیاتی مطالعہ -------------------------------------------------------------------------------------Shariah Advisory in Contemporary Islamic Banks: An Analytical Study

Abstract

Complying of Islamic Banking products and services with the principles of Shariah is the essence of Islamic banking industry. A sound and effective Sharī’ah compliance framework is thus critically important to give confidence to the general public about Shariah conformity of Islamic Banking Institutions’ (IBIs’) products and services. The objective of this study is to compare the Sharī’ah Governance regulations issued by the Central Bank of Pakistan, Bank Nigara Malaysia and other bodies, i.e. Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and Islamic Financial Services Board (IFSB). This study highlights qualification and competency of a Shariah Advisor/ Shariah Supervisory Board Member from the Quran, Sunnah and sayings of renowned Islamic jurists. The study will also address the issues of accountability, audit and role of Shariah supervisory board in Islamic financial institutions. Hence the independence of Shariah advisor is necessary for effectively ensuring Sharī’ah compliance in Islamic Bank. The study highlights that the impartial decisions, accountability, transparency, and trustworthiness of Shariah supervisory board is important for the credibility of Islamic Banking. Being an exploratory and analytical study, both primary and secondary sources of data were gathered and used.