Shariah Supervisory Board
Group of scholars ensuring a bank’s compliance with Islamic principles.
Detailed Description
Shariah Supervisory Board
What is the primary role of a Shariah Supervisory Board?
The primary role is to ensure that Islamic financial institutions comply with Shariah law and uphold ethical financial practices.
Who typically composes a Shariah Supervisory Board?
It is composed of qualified Islamic scholars and experts in Islamic jurisprudence, finance, and economics.
What are some functions of the Shariah Supervisory Board?
Functions include issuing fatwas, conducting audits, providing training on Shariah compliance, and approving new financial products.
How does the Shariah Supervisory Board differ from conventional banking oversight?
The SSB emphasizes ethical considerations and Shariah compliance, while conventional oversight focuses on financial performance and regulatory compliance.
What challenges does the Shariah Supervisory Board face?
Challenges include differing interpretations of Shariah law, lack of standardized frameworks, and criticisms of being overly conservative.