Publication:
Corporate Governance and Shariah Compliance in Institutions Offering Islamic Financial Services

Simple item page
dc.contributor.authorGrais, Wafik
dc.contributor.authorPellegrini, Matteo
dc.date.accessioned2012-06-25T13:57:01Z
dc.date.available2012-06-25T13:57:01Z
dc.date.issued2006-11
dc.description.abstractThe structures and processes established within an institution offering Islamic financial Services (IIFS) for monitoring and evaluating Shariah compliance rely essentially on arrangements internal to the firm. By being incorporated in the institutional structure, a Shariah supervisory board (SSB) has the advantage of being close to the market. Competent, independent, and empowered to approve new Shariah-conforming instruments, an SSB can enable innovation likely to emerge within the institution. The paper reviews the issues and options facing current arrangements for ensuring Shariah compliance by IIFS. It suggests a framework that draws on internal and external arrangements to the firm and emphasizes market discipline. In issuing its fatwas, an SSB could be guided by standardized contracts and practices that could be harmonized by a self-regulatory professionals' association. A framework with the suggested internal and external features could ensure adequate consistency of interpretation and enhance the enforceability of contracts before civil courts. The review of transactions would mainly be entrusted to internal review units, which would collaborate with external auditors responsible for issuing an annual opinion on whether the institution's activities has met its Shariah requirements. This process would be sustained by reputable entities such as rating agencies, stock markets, financial media, and researchers who would channel signals to market players. This framework would enhance public understanding of the requirements of Shariah and lead to more effective options available to stakeholders to achieve improvements in Islamic financial services.en
dc.identifierhttp://documents.worldbank.org/curated/en/2006/11/7186425/corporate-governance-shariah-compliance-institutions-offering-islamic-financial-services
dc.identifier.doi10.1596/1813-9450-4054
dc.identifier.urihttps://hdl.handle.net/10986/8901
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper No. 4054
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectACCOUNTING PRACTICES
dc.subjectACCOUNTING STANDARDS
dc.subjectARTICLES OF ASSOCIATION
dc.subjectAUDIT COMMITTEE
dc.subjectAUDITING
dc.subjectAUDITOR INDEPENDENCE
dc.subjectAUTHORITY
dc.subjectBANK NEGARA MALAYSIA
dc.subjectBANK OF THAILAND
dc.subjectBANKING SUPERVISION
dc.subjectBANKING SYSTEM
dc.subjectBANKS
dc.subjectBUSINESS ORGANIZATIONS
dc.subjectCAPITAL MARKETS
dc.subjectCENTRAL BANKS
dc.subjectCHARTER
dc.subjectCOMPANY
dc.subjectCONFLICT OF INTEREST
dc.subjectCONFLICTS OF INTEREST
dc.subjectCONSENSUS
dc.subjectCORPORATE ENTITY
dc.subjectCORPORATE GOVERNANCE
dc.subjectCORPORATE GOVERNANCE ARRANGEMENTS
dc.subjectCORPORATION
dc.subjectCORPORATIONS
dc.subjectDEBT
dc.subjectDECISION-MAKING
dc.subjectDISCLOSURE
dc.subjectDISTRIBUTION OF INCOME
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC GROWTH
dc.subjectEMPLOYMENT
dc.subjectENFORCEABILITY
dc.subjectETHICAL STANDARDS
dc.subjectEXTERNAL AUDITORS
dc.subjectFINANCIAL CONTRACTS
dc.subjectFINANCIAL INDUSTRY
dc.subjectFINANCIAL INFORMATION
dc.subjectFINANCIAL INSTITUTION
dc.subjectFINANCIAL INSTITUTIONS
dc.subjectFINANCIAL INSTRUMENTS
dc.subjectFINANCIAL INTERESTS
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL PERFORMANCE
dc.subjectFINANCIAL PERFORMANCES
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL SERVICES
dc.subjectFINANCIAL STATEMENTS
dc.subjectFINANCIAL TRANSACTIONS
dc.subjectHOUSING
dc.subjectHUMAN RESOURCE
dc.subjectINCORPORATED
dc.subjectINDEPENDENT DIRECTORS
dc.subjectINDIVIDUALS
dc.subjectINSTITUTIONAL ENVIRONMENT
dc.subjectINSTITUTIONAL STRUCTURE
dc.subjectINSURANCE
dc.subjectINTEREST INCOME
dc.subjectINTERNAL AUDIT
dc.subjectINVESTMENT BANK
dc.subjectISLAMIC BANK
dc.subjectISLAMIC BANKING
dc.subjectLABOR MARKET
dc.subjectLAWS
dc.subjectLEGISLATION
dc.subjectLEGISLATIVE ACTS
dc.subjectLIMITED
dc.subjectMAJORITY SHAREHOLDERS
dc.subjectMANAGEMENT REPORTS
dc.subjectMANAGERS
dc.subjectMARKET DISCIPLINE
dc.subjectMINORITY SHAREHOLDERS
dc.subjectMUTUAL FUNDS
dc.subjectNON-BANK
dc.subjectPEER REVIEW
dc.subjectPROPERTY RIGHTS
dc.subjectPROPRIETARY
dc.subjectPUBLIC POLICY
dc.subjectRATING AGENCIES
dc.subjectREGULATORY FRAMEWORK
dc.subjectREGULATORY INSTITUTIONS
dc.subjectRENTS
dc.subjectSECURITIES
dc.subjectSHAREHOLDERS
dc.subjectSOCIETY
dc.subjectSTAKEHOLDER
dc.subjectSTAKEHOLDERS
dc.subjectSTATE BANK
dc.subjectSTATE BANK OF PAKISTAN
dc.subjectSTOCK EXCHANGE
dc.subjectSTOCK MARKET
dc.subjectSTOCK MARKETS
dc.subjectSUPERVISORY AUTHORITIES
dc.subjectTRANSPARENCY
dc.subjectTRUST FUNDS
dc.subjectUNIVERSITIES
dc.titleCorporate Governance and Shariah Compliance in Institutions Offering Islamic Financial Servicesen
dspace.entity.typePublication
okr.crossref.titleCorporate Governance And Shariah Compliance In Institutions Offering Islamic Financial Services
okr.date.doiregistration2025-04-10T09:18:51.556126Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2006/11/7186425/corporate-governance-shariah-compliance-institutions-offering-islamic-financial-services
okr.globalpracticeFinance and Markets
okr.globalpracticeGovernance
okr.guid675821468141267256
okr.identifier.doi10.1596/1813-9450-4054
okr.identifier.externaldocumentum000016406_20061108095535
okr.identifier.internaldocumentum7186425
okr.identifier.reportWPS4054
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/11/08/000016406_20061108095535/Rendered/PDF/wps4054.pdfen
okr.topicFinance and Financial Sector Development::Non Bank Financial Institutions
okr.topicBanks and Banking Reform
okr.topicLaw and Development::Corporate Law
okr.topicGovernance::National Governance
okr.topicGovernance::Governance Indicators
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
Files
Original bundle
Now showing 1 - 2 of 2
Thumbnail Image
Name:
wps4054.pdf
Size:
472.56 KB
Format:
Adobe Portable Document Format
Download
No Thumbnail Available
Name:
wps4054.txt
Size:
107.14 KB
Format:
Plain Text
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.71 KB
Format:
Plain Text
Description:
Download
Collections
Policy Research Working Papers