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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