The Role of Shariah Board in Islamic Banks: Pakistan9apos9s Perspective

Muhammad Mushtaq Ahmed, Zia Uddin and Muhammad Iqbal
Additional contact information
Muhammad Mushtaq Ahmed: Assistant Professor, Department of Islamic & Arabic Studies, University of Swat, KP, Pakistan.
Zia Uddin: Lecturer, Department of Islamic & Arabic Studies, University of Swat, KP, Pakistan.
Muhammad Iqbal: Lecturer, Department of Islamic & Arabic Studies, University of Swat, KP, Pakistan.

Global Regional Review, 2017, vol. 2, issue 1, 356-363

Abstract: The State Bank of Pakistan introduced diversion from the individual Shariah advisory system to the Shariah board mechanism by issuing the Shariah governance framework in 2016 by making it mandatory for the Islamic banks to have an independent Shariah board. In this paper, it is examined whether the Shariah boards have any effective role in the improvement of the Shariah compliance environment of the banks or not? And how to make it more effective for the betterment of the Islamic banking industry? A questionnaire has been developed to study and inspect these issues. The results indicate that even though the role of sharia board could not be denied in the improvement of Shariah compliance in IBIs, however, the mechanism may be further strengthened. The study also suggests that Shariah board members should be involved regularly by making it obligatory on the IBIs to arrange frequent meetings of the board.

Keywords: Shariah Board; Islamic Banks; Pakistan; Shariah Compliance (search for similar items in EconPapers)
Date: 2017
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://grrjournal.com/jadmin/Auther/31rvIolA2LALJouq9hkR/myTCWfQ5jK.pdf (application/pdf)
https://www.grrjournal.com/issue/The-Role-of-Shari ... akistans-Perspective (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aaw:grrjrn:v:2:y:2017:i:1:p:356-363

DOI: 10.31703/grr.2017(II-I).25

Access Statistics for this article

More articles in Global Regional Review from Humanity Only
Bibliographic data for series maintained by M Imran Khan ( this e-mail address is bad, please contact ).