Islamic corporate governance: the significance and functioning of Shari’ah supervisory board in Islamic banking

Yıl 2019, Cilt: 6 Sayı: 1, 87 - 108, 15.02.2019

Imran Khan , Syeda Nitasha Zahid

Öz

The stability and
resilience that Islamic banking (IBs) industry has shown during the current
global crisis is based on the principles of Islamic economic laws that rest on
equity, participation, and business ethics. The literature on Islamic corporate
governance (ICG) is growing quite rapidly and the industry has emerged as an
alternative to the conventional counterpart. This paper critically reviews the
existing literature on ICG with a particular focus on the significance and
functions of Shari’ah supervisory
board (SSB), which differentiate IBs
from CBs. This review describes ICG framework, elaborate and summarize SSB
functions, compares IBs
with CBs and assess the impact of SSB on IB’s performance.
The key findings show that majority of the literature on SSB describes guiding
and controlling as two main functions of a Shari’ah
board and extent of literature supports positive association between Shari’ah governance
and IBs performance. This study might be helpful for scholars and practitioners
approaching this field to study the role and functioning of SSB.

Anahtar Kelimeler

Shari’ah supervisory board, Islamic corporate governance, SSB functions, performance

Kaynakça

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