Guiding Principles for Shariah Governance

Powerful Essays
Yahaya Ismail Legal and Regulatory Issues in Islamic Banking and Finance Guiding Principles for Shariah Governance System Professor: Dr. Kazeem Yavari For Institutions Offering Islamic Financial Services (IFSB Standards) 25/05/2011

INTRODUCTION:

The Islamic Financial Service Board is an international financial organization. It was founded in 2003 and issues guiding principles and standards within the Islamic banking and financial sector. It aims to promote stability and order in the Islamic financial industry. It also aims to promote the awareness of Islamic financial services. Among its duties is the issuance of Shariah-compliant standards, and provision of guidance and supervision for Islamic Financial Institutions. The IFSB issued principles and standards regarding issues on Risk Management, Capital Adequacy Standards, Corporate Governance, Transparency and Market Discipline, Supervisory Review Process, Governance for Islamic Collective Scheme, Sukuk Securitization and Real Estate Investment, Takaful (Islamic Insurance) Undertakings, Conduct of Business, and Shariah Governance Systems1 for institutions offering Islamic financial services. The Board developed guiding principles in recent years to strengthen governance structures and processes in various segments of the Islamic financial services industry. These three guiding principles are  Guiding Principles for Governance for Institutions offering only Islamic Financial Services (IFSB-3, 2006)  Guiding Principles on Governance for Islamic Collective Investment Schemes (IFSB6, 2008)  Guiding Principles on Governance for Takaful Operations (IFSB-8, 2009) In all three guiding principles, there were recurring issues of the functions of the Shariah boards2. Due to these recurring issues, the IFSB prepared other sets of guiding principles on Shariah governance system. The objectives of these guiding principles are to: I. Complement other prudential standards issued by the IFSB by focusing on the importance

You May Also Find These Documents Helpful

  • Good Essays

    It Guiding Principles

    • 268 Words
    • 2 Pages

    Information Technology Guiding Principles Information technology services are governed by a set of guiding principles. These principles were developed to express the fundamental concepts and guiding themes for global information technology initiatives, and to assure that activities and IT accomplishments are aligned with corporate strategic goals. Guiding principles document the essential notions for information technology services, provide direction to assure…

    • 268 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Benjamin Franklin’s Guiding Principles. In this passage, there are plenty of guiding principles, but there are two that are really good. These two are optimism and honesty. Optimism is looking at the good side of things, and honesty is just simply just telling the truth. The first guiding principle is honesty. Benjamin Franklin uses this in his passage as he is talking about him looking like a wreck in front of his soon to…

    • 222 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    10 guiding principles

    • 358 Words
    • 2 Pages

    Inspiration- My daughter is my biggest inspiration because she pushes me to do everything. 10. Success- I want to be successful in life even though I have postponed my education I am now more than ever determined in what I do. I use all of these principles in a professional workplace (classroom) but especially respect. I have always been taught to give respect…

    • 358 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    BK5503 Islamic Banking January 2014 Semester INCEIF The Global University in Islamic finance MSc in Islamic Finance Are existing systems for Shari’ah governance adequate? How could they be improved? BK5503 Islamic Banking January 2014 Semester Name: Mohamad Zaky Bin Jailani Student ID: 1400025 Mohamad Zaky Bin Jailani 1400025 Page 1 BK5503 Islamic Banking January 2014 Semester Table of Contents Key Terms and Abbreviations 3 Abstract 3 1.0 Introduction…

    • 2671 Words
    • 18 Pages
    Powerful Essays
  • Good Essays

    10 Guiding Principles

    • 430 Words
    • 2 Pages

    e, the ratio of an object’s height to the distance be- tween its base and the horizon can indicate what size an object is and can be the basis for size constancy. Size constancy refers to perceiving an object of a certain size, such as a six-foot-tall man, as being six feet tall regardless of whether he is close to the viewer or far away from the viewer. Another invariant is time-to-contact. People and animals can accurately judge when they will have contact with an- other, but they…

    • 430 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    shariah governce

    • 461 Words
    • 2 Pages

    Session 1: Concept of Shariah governance The definition of “shariah governance system” is referred to the processes and structures composed by the stakeholders in the Islamic Financial Standard Board in order to ensure that shariah rules and principles are compiled within the industry. Islamic Financial Standard Board began their operations on March 2003. They are considered to be an international standard setting organization for the purpose of promoting and enhancing the stability of the Islamic…

    • 461 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Corporate Governance: Corporate governance involves regulatory and market mechanisms, and the roles and relationships between a company’s management, its board, its shareholders and other stakeholders, and the goals for which the corporation is governed.[1][2] Lately, corporate governance has been comprehensively defined as "a system of law and sound approaches by which corporations are directed and controlled focusing on the internal and external corporate structures with the intention of monitoring…

    • 417 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Six principles of IT governance Responsibility: Groups and individuals within an organization understand and accept their responsibilities in respect of both supply of, and demand for, IT. Those with responsibility for actions also have the authority to perform those actions. Strategy: The organization’s business strategy takes into account the current and future capabilities of IT; the strategic plans for IT satisfy the current and ongoing needs of the organization’s business strategy.…

    • 356 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Maqasid Shariah

    • 1072 Words
    • 5 Pages

    MAQASID AL SHARIAH (Goals, purposes and objectives of the shariah) Maqasid Al Shariah is branch of Usul Fiqh made systematic by Imam Syathibi as what Imam Syafi’ did to Jurisprudent. Syathibi was born as Abu Ishak Ibrahim bin Musa bin Muhammad Allakhami al-Gharmathi in Granada in 730H and died 790H or 1388. He lives during the reign of Bani Ahmar descendant of Sa’ad bin Ubadah a companion of the Prophet. He was one of the great scholars of Mazhab Maliki. Why Allah revealed the Shariah? Scholar…

    • 1072 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Waad in Shariah

    • 5577 Words
    • 23 Pages

    Introduction to risk management In islamic financial institutions RZB4503 waad from the Shariah perspective Table of Contents Introduction 3 The definition of waad 3 Pillars of waad 4 Term, conditions and prohibitions of waad 5 The difference between waad and aqad 5 Scholars opinions 6 Applications and issues of waad in modern Islamic financial transactions and its importance 10 Effects of waad from Islamic financial institutions perspective 11 Conclusion 13 References…

    • 5577 Words
    • 23 Pages
    Powerful Essays