Publication:
Corporate Governance and Shariah Compliance in Institutions Offering Islamic Financial Services
dc.contributor.author | Grais, Wafik | |
dc.contributor.author | Pellegrini, Matteo | |
dc.date.accessioned | 2012-06-25T13:57:01Z | |
dc.date.available | 2012-06-25T13:57:01Z | |
dc.date.issued | 2006-11 | |
dc.description.abstract | The 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.identifier | http://documents.worldbank.org/curated/en/2006/11/7186425/corporate-governance-shariah-compliance-institutions-offering-islamic-financial-services | |
dc.identifier.uri | http://hdl.handle.net/10986/8901 | |
dc.language | English | |
dc.publisher | World Bank, Washington, DC | |
dc.relation.ispartofseries | Policy Research Working Paper No. 4054 | |
dc.rights | CC BY 3.0 IGO | |
dc.rights.holder | World Bank | |
dc.rights.uri | http://creativecommons.org/licenses/by/3.0/igo/ | |
dc.subject | ACCOUNTING | |
dc.subject | ACCOUNTING PRACTICES | |
dc.subject | ACCOUNTING STANDARDS | |
dc.subject | ARTICLES OF ASSOCIATION | |
dc.subject | AUDIT COMMITTEE | |
dc.subject | AUDITING | |
dc.subject | AUDITOR INDEPENDENCE | |
dc.subject | AUTHORITY | |
dc.subject | BANK NEGARA MALAYSIA | |
dc.subject | BANK OF THAILAND | |
dc.subject | BANKING SUPERVISION | |
dc.subject | BANKING SYSTEM | |
dc.subject | BANKS | |
dc.subject | BUSINESS ORGANIZATIONS | |
dc.subject | CAPITAL MARKETS | |
dc.subject | CENTRAL BANKS | |
dc.subject | CHARTER | |
dc.subject | COMPANY | |
dc.subject | CONFLICT OF INTEREST | |
dc.subject | CONFLICTS OF INTEREST | |
dc.subject | CONSENSUS | |
dc.subject | CORPORATE ENTITY | |
dc.subject | CORPORATE GOVERNANCE | |
dc.subject | CORPORATE GOVERNANCE ARRANGEMENTS | |
dc.subject | CORPORATION | |
dc.subject | CORPORATIONS | |
dc.subject | DEBT | |
dc.subject | DECISION-MAKING | |
dc.subject | DISCLOSURE | |
dc.subject | DISTRIBUTION OF INCOME | |
dc.subject | ECONOMIC ACTIVITY | |
dc.subject | ECONOMIC GROWTH | |
dc.subject | EMPLOYMENT | |
dc.subject | ENFORCEABILITY | |
dc.subject | ETHICAL STANDARDS | |
dc.subject | EXTERNAL AUDITORS | |
dc.subject | FINANCIAL CONTRACTS | |
dc.subject | FINANCIAL INDUSTRY | |
dc.subject | FINANCIAL INFORMATION | |
dc.subject | FINANCIAL INSTITUTION | |
dc.subject | FINANCIAL INSTITUTIONS | |
dc.subject | FINANCIAL INSTRUMENTS | |
dc.subject | FINANCIAL INTERESTS | |
dc.subject | FINANCIAL MARKETS | |
dc.subject | FINANCIAL PERFORMANCE | |
dc.subject | FINANCIAL PERFORMANCES | |
dc.subject | FINANCIAL SECTOR | |
dc.subject | FINANCIAL SERVICES | |
dc.subject | FINANCIAL STATEMENTS | |
dc.subject | FINANCIAL TRANSACTIONS | |
dc.subject | HOUSING | |
dc.subject | HUMAN RESOURCE | |
dc.subject | INCORPORATED | |
dc.subject | INDEPENDENT DIRECTORS | |
dc.subject | INDIVIDUALS | |
dc.subject | INSTITUTIONAL ENVIRONMENT | |
dc.subject | INSTITUTIONAL STRUCTURE | |
dc.subject | INSURANCE | |
dc.subject | INTEREST INCOME | |
dc.subject | INTERNAL AUDIT | |
dc.subject | INVESTMENT BANK | |
dc.subject | ISLAMIC BANK | |
dc.subject | ISLAMIC BANKING | |
dc.subject | LABOR MARKET | |
dc.subject | LAWS | |
dc.subject | LEGISLATION | |
dc.subject | LEGISLATIVE ACTS | |
dc.subject | LIMITED | |
dc.subject | MAJORITY SHAREHOLDERS | |
dc.subject | MANAGEMENT REPORTS | |
dc.subject | MANAGERS | |
dc.subject | MARKET DISCIPLINE | |
dc.subject | MINORITY SHAREHOLDERS | |
dc.subject | MUTUAL FUNDS | |
dc.subject | NON-BANK | |
dc.subject | PEER REVIEW | |
dc.subject | PROPERTY RIGHTS | |
dc.subject | PROPRIETARY | |
dc.subject | PUBLIC POLICY | |
dc.subject | RATING AGENCIES | |
dc.subject | REGULATORY FRAMEWORK | |
dc.subject | REGULATORY INSTITUTIONS | |
dc.subject | RENTS | |
dc.subject | SECURITIES | |
dc.subject | SHAREHOLDERS | |
dc.subject | SOCIETY | |
dc.subject | STAKEHOLDER | |
dc.subject | STAKEHOLDERS | |
dc.subject | STATE BANK | |
dc.subject | STATE BANK OF PAKISTAN | |
dc.subject | STOCK EXCHANGE | |
dc.subject | STOCK MARKET | |
dc.subject | STOCK MARKETS | |
dc.subject | SUPERVISORY AUTHORITIES | |
dc.subject | TRANSPARENCY | |
dc.subject | TRUST FUNDS | |
dc.subject | UNIVERSITIES | |
dc.title | Corporate Governance and Shariah Compliance in Institutions Offering Islamic Financial Services | en |
dspace.entity.type | Publication | |
okr.doctype | Publications & Research :: Policy Research Working Paper | |
okr.doctype | Publications & Research | |
okr.docurl | http://documents.worldbank.org/curated/en/2006/11/7186425/corporate-governance-shariah-compliance-institutions-offering-islamic-financial-services | |
okr.globalpractice | Finance and Markets | |
okr.globalpractice | Governance | |
okr.identifier.doi | 10.1596/1813-9450-4054 | |
okr.identifier.externaldocumentum | 000016406_20061108095535 | |
okr.identifier.internaldocumentum | 7186425 | |
okr.identifier.report | WPS4054 | |
okr.language.supported | en | |
okr.pdfurl | http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2006/11/08/000016406_20061108095535/Rendered/PDF/wps4054.pdf | en |
okr.topic | Finance and Financial Sector Development :: Non Bank Financial Institutions | |
okr.topic | Banks and Banking Reform | |
okr.topic | Law and Development :: Corporate Law | |
okr.topic | Governance :: National Governance | |
okr.topic | Governance :: Governance Indicators | |
okr.unit | Development Research Group (DECRG) | |
okr.volume | 1 of 1 | |
relation.isSeriesOfPublication | 26e071dc-b0bf-409c-b982-df2970295c87 |
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