What are the Elements and Structures of Corporate Governance in Islamic Banking and how they differ from the conventional banking?© BrainMass Inc. brainmass.com October 17, 2018, 12:33 pm ad1c9bdddf
Islamic Banking incorporates the basic beliefs of good corporate governance, stressing the three main areas of accountability, transparency and trustworthiness in accordance to the teaching of Islam.
It differs from conventional banking because equity participation, risk and profit-and-loss sharing arrangements form the basis of Islamic banking. With these financial arrangements, stakeholder relationships and ...
Corporate governance in Islamic banking incorporates another layer of control through the requirement of Shari'a board or Shari'a supervisory board. The main function of the Shari'a board is to supervise and to ensure banks are not involve in the non-halal trading in their transactions. Banks are also prohibited from taking interest from their customers. People deposit their money in Islamic bank in the principle of risk and profit sharing, therefore, they will receive dividends rather than interest.
Shari'ah Islamic Law Governance
Please provide a thorough explanation and elaboration of what is the concept, basic facts/ basic theory, major ideas, background and practices of Shari'ah "Islamic Law" Governance, what the basic theory behind it and how it works compared to best practices of corporate governance.
Provide cases and comparisons and contrasts with non-Shari'ah or conventional corporate governance practices. Are there any arguments or examples in support of the above mentioned?
What is the conclusion of the above comparisons and contrasts? What precautionary measures should Islamic financial institutions take to avoid non-compliance with Shari'ah governance standards? What is the contribution of Shari'ah governance standards to the financial systems and corporate governance best practices and the economy at large?View Full Posting Details