Shari’ah Supervision Board Roles And Approaches In Developing Islamic Financial Institutions

Abstract

The obligatory of indoctrinating muslim society with Islamic norm is unequivocally a need itself. Since the demand and the progress of Islamic financial industry has been growth immensely, an independent body auditing the operation becomes indispensablie from day to day. It is not only auditing for the accountability of the Islamic financial institution’s operation but also an auditing for the operation to be Shariah compliance. The Shari’ah supervisory board (SSB), comprises high caliber scholars, is formed in order to assess whether the operations and the products offered by Islamic Financial Institutions (IFI’s) are complying to Shariah rules. This paper elaborates the SSB roles and approaches in developing Islamic financial institutions and applies qualitative method as well in order to achieve the shari’ah objectives (maqasid as-shari’ah). In the end of the paper the researcher highlights some important recommendations or suggestions about the roles and approaches of SSB in the developing Islamic financial institutions as a whole