Shari’ah Governance Regimes for Islamic Finance: Types and Appraisal - I regimi di governance conformi alla shari’ah nella finanza islamica: tipologia e valutazione

Habib Ahmed ()
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Habib Ahmed: Institute of Middle Eastern & Islamic Studies, School of Government & International Affairs, Durham University, Postal: The Al-Qasimi Building Elvet Hill Road - DURHAM DH13TU - United Kingdom, http://www.dur.ac.uk/sgia/imeis/
Authors registered in the RePEc Author Service: Habib Ahmed () and Ahmed Mohamed Habib ()

Economia Internazionale / International Economics, 2011, vol. 64, issue 4, 393-412

Abstract: Islamic financial institutions provide financial services that abide by the principles and goals of Islamic law (Shari’ah). To ensure the compliance of the operations and products with Islamic law, a Shari’ah governance mechanism must be established. To understand the scope of Shari’ah governance the stakeholders of the Islamic banking industry and Shari’ah requirements need to be identified. The type of Shari’ah governance framework for Islamic finance will depend on the legal and regulatory environment in different jurisdictions. At organizational level, the overall corporate governance framework in Islamic banks will define the role of Shari’ah governance. After identifying four Shari’ah governance regimes existing in different countries, the paper suggests an optimal Shari’ah governance framework that can reduce the Shari’ah complaint risks and ensure long-term growth of the industry. - Le istituzioni finanziarie islamiche forniscono servizi nel rispetto dei principi e degli obiettivi della legge islamica (la Shari’ah). Al fine di assicurare che le operazioni e i prodotti finanziari si conformino alla legge islamica devono essere adottati adeguati sistemi di governance. Per capire le modalità di tale governance è necessario identificare gli stakeholder del sistema bancario islamico e i requisiti necessari secondo la Shari’ah. Il tipo di struttura della governance dipenderà a livello legale e regolatorio da diverse giurisdizioni. Dopo aver individuato quattro regimi di governance che rispettano la Shari’ah applicati in diversi paesi, questo studio delinea una governance ideale in grado di ridurre i rischi e assicurare la crescita del settore nel lungo periodo.

Keywords: Islamic Finance; Shari’ah Governance; Shari’ah Supervisory Boards (search for similar items in EconPapers)
JEL-codes: G39 P59 (search for similar items in EconPapers)
Date: 2011
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