By Imran Hussein Minhas
Abstract
Governance means ensuring the compliance the rules and regulations prescribed for observance in an organization for efficiency and achievements of its aims and objects. As Islamic banking is based on Shariah principles and rules, it is necessary that it should be subject to Shariah governance to ensure its working within Shariah parameters and not overstepping its limits. For this purpose a Shariah governance model has been envisaged which will be headed by Shariah advisory board aided by other ancillary departments. Its edifice will be raised on four pillars Management and Supervision Shariah Advisory Shariah Compliance and Review Transparency and Disclosure This will strengthen the belief in the system as being truly Shariah compliant. It will also result in Islamic banks’ strict adherence to Shariah principles and reduce the risk of their deviation from the correct path.
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