Shari’ah Governance of Islamic Banking Institutions in Pakistan: An Analytical Overview

Sahibzada Muhammad Wasim Jan
Additional contact information
Sahibzada Muhammad Wasim Jan: Islamic Law Department, Ahmad Ibrahim Kulliyyah of Laws, International Islamic University Malaysia, Kuala Lumpur, Malaysia

International Journal of Business and Administrative Studies, 2020, vol. 6, issue 6, 286-299

Abstract: Shari’ah governance is the arrangement which provides legitimacy to the business of Islamic Banking Institutions (IBIs) because the concept of Shari governance requires that all business affairs of IBIs must be conducted according to Shari’ah rules and principles under the Shari’ah supervision. Shari’ah governance for IBIs is directed and controlled by the State Bank of Pakistan (SBP) with the assistance of its Shari’ah Advisory Committee (SAC) and practiced by Shari’ah boards in IBIs with the aid of other organs of the organization. Applying a descriptive methodology, the research has investigated the current practice of Shari’ah governance depending on the regulatory guidelines and standards issued by the SBP and the literature on the topic. The research has discovered that Shari’ah governance of IBIs in Pakistan has been formulated and implemented significantly by SBP but at the industry level, the composition and functions of Shari’ah boards require some regulatory enhancements in order to safeguard the credibility and marketability of Shari’ah governance of IBIs. The research suggests that Shari’ah boards must have additional members qualified for the position and their functions should be comprehensive as well as their performance should be assessed so it could cater the business needs of IBIs.

Keywords: Shari’ah governance; Islamic banking; SBP; SAC; Shari’ah board (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://kkgpublications.com/business-v6-i6-article-1/ (application/pdf)
https://kkgpublications.com/wp-content/uploads/2020/12/ijbas.6.10001-6.pdf (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:apa:ijbaas:2020:p:286-299

DOI: 10.20469/ijbas.6.10001-6

Access Statistics for this article

International Journal of Business and Administrative Studies is currently edited by Professor Dr. Bahaudin G. Mujtaba

More articles in International Journal of Business and Administrative Studies from Professor Dr. Bahaudin G. Mujtaba Calle Alarcon 66, Sant Adrian De Besos 08930, Barcelona Spain.
Bibliographic data for series maintained by Professor Dr. Bahaudin G. Mujtaba ().