Islamic Finance: Laying Down an Overarching Schema for Value based Sharī‘ah Advisory and Governance Framework

Muhammad Ayub

Article Details

Islamic Finance: Laying Down an Overarching Schema for Value based Sharī‘ah Advisory and Governance Framework

Authors:

Muhammad Ayub

Publisher:

Riphah International University

Journal:

Journal of Islamic Business and Management Vol.3 Issue 2, pp.0-0

Document Type:

Article

Publication Date:

1/2013

Document Language:

English

Document ID (Org No.):

2001947688

pISSN:

2075-6291

Keywords:

Abstract:

 The fast growth of Islamic Finance has simultaneously exposed the weaknesses in the system as being applied. The products have evolved as replication of the conventional products without any linkage with maqasid al-sharī‘ah . Conformation of many products to the tenets of the sharī‘ah is doubtful even in letter, of sure devoid of the spirit. There are concerns on sharī‘ah advisory, compliance and the regulatory systems as applied at national and the global levels. The countries like Malaysia and Pakistan and a few professionals from UK and UAE have lately taken some initiatives to introduce reforms in the related area, yet a lot more needs to be done to strengthen the underlying value system and the aspect of sharī‘ah compliance - the focal determinant for sustainable development of Islamic financial system. This paper suggests structural reforms for strengthening the value system at the sharī‘ah committees and regulatory levels to upkeep the integrity and credibility of the most respectful and crucial stakeholder of the Islamic finance – the sharī‘ah scholars and hence the system. Introducing a well-planned regulatory system and removing / managing the ‘conflict of interests’ in the structure of sharī‘ah supervision are the necessary steps to be taken with ultimate objective to achieve maqasid al-sharī‘ah . Establishment of Associations of sharī‘ah Advisors at national levels and a Global Commission on sharī‘ah Advisory at global level may help in resolving many related issues. The standards setting institutions, regulatory bodies and the sharī‘ah scholars have to make joint efforts in this regard.

Article Details

Islamic Finance: Laying Down an Overarching Schema for Value based Sharī‘ah Advisory and Governance Framework

Authors:

Muhammad Ayub

Publisher:

Riphah International University

Journal:

Journal of Islamic Business and Management Vol.3 Issue 2, pp.0-0

Document Type:

Article

Publication Date:

1/2013

Document Language:

English

Document ID (Org No.):

2001947688

pISSN:

2075-6291

Sharī‘ah Governance

Sharī‘ah Advisors

Prudential Regulations

Fatwa Shopping

Conflict of Interest

Vanilla Products

AAOIFI Standards

Issues

Article Details

Authors: Muhammad Ayub

Publisher: Riphah International University

Journal: Journal of Islamic Business and Management Vol.3 Issue 2, pp.0-0

Document Type: Article

Publication Date: 1/2013

Document Language: English

Document ID (Org No.): 2001947688

pISSN: 2075-6291

Issues

Authors:

Muhammad Ayub

Publisher:

Riphah International University

Journal:

Journal of Islamic Business and Management Vol.3 Issue 2, pp.0-0

Document Type:

Article

Publication Date:

1/2013

Document Language:

English

Document ID (Org No.):

2001947688

pISSN:

2075-6291