Shari’Ah Compliance in a European Banking Context

Sevgi Osman and Nedyalko Valkanov

Economic Thought journal, 2025, issue 1, 72-96

Abstract: Compliance rules existed even before the earliest modern financial and banking regulations. This paper aims to compare compliance systems in terms of the principles of Islamic finance with those of conventional finance and to determine whether they can exist “under one roof”. It focuses on the importance of Shari’ah compliance in Islamic corporate governance and the main body for its assurance – the Shari’ah Supervisory board, which takes various shapes in different legal and regulatory systems. Using the content analysis method, Shari’ah compliance among European Islamic banks (or Islamic windows) was investigated and on this basis the conclusion was drawn that, with the help of internal and external efforts, an effective framework for Shari’ah compliance can be ensured even in traditional financial institutions. Such a framework is needed mostly for the clarification of Shari’ah rules and norms in societies with a vested interest in Islamic financial markets and products.

JEL-codes: G21 G32 G38 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://etj.iki.bas.bg/storage/app/uploads/public/ ... 594294c956055745.pdf

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:bas:econth:y:2025:i:1:p:72-96

Access Statistics for this article

More articles in Economic Thought journal from Bulgarian Academy of Sciences - Economic Research Institute Contact information at EDIRC.
Bibliographic data for series maintained by Diana Dimitrova ().