Slide show for detailed information about risk management in Islamic banking and how it is different from conventional banking
includes risk failures models, risk mitigation tools etc.
Slide show for detailed information about risk management in Islamic banking and how it is different from conventional banking
includes risk failures models, risk mitigation tools etc.
Islamic Banking (IB)Definition:Islamic banking can be defined as: a form of modern banking based on Islamic legal concepts using risk- sharing as its main method excluding financing based on fixed pre- determined return.
This presentation was presented by a group of students of MBA (Finance) at University Institute of Management Sciences (University of Arid Agriculture Rawalpindi, Pakistan
Islamic Banking (IB)Definition:Islamic banking can be defined as: a form of modern banking based on Islamic legal concepts using risk- sharing as its main method excluding financing based on fixed pre- determined return.
This presentation was presented by a group of students of MBA (Finance) at University Institute of Management Sciences (University of Arid Agriculture Rawalpindi, Pakistan
Unlocking the Value of Regulatory Compliance to Advance Financial Planning &...Proformative, Inc.
Call reporting, DFAST, CCAR - the amount of time and energy spent by banks to comply with cumbersome banking regulations is painful at best. You can turn this process into an advantage for your company by leveraging current advances in technology to cost-effectively streamline compliance with regulatory requirements and deliver more advanced planning and analysis that fuels company growth.
This study theoretically examines the role of shariah board in supervising Islamic banks, in particular the responsibility and the authority of the board members
Corporate Governance of Capital Market of BangladeshIOSR Journals
This paper outlines the conceptual, contextual and disciplinary scope of the rapidly evolving area of corporate governance of capital market of Bangladesh. As a basis for improving the rigor of research and analysis, some definitions, principles, theories and legal frame work of corporate governance are examined. This study also investigates the extent to which the capital market of Bangladesh comply with the corporate governance guidelines of Securities and Exchange Commission Bangladesh(SECB) and it also indicates that only sound corporate governance practices are the foundation upon which the trust of investors(stakeholders, banks, and non bank financial institutions) and other stakeholders is founded.
Golden opportunities under corporate governancetaxguru4
Like in any family there are unwritten rules for good bonding between members, the corporate governance is all about a system of direction, feedback, and control using regulations and ethical guidelines meeting societal expectations. The word governance is derived from the word ‘gubernate’, which means to steer. Thus, Corporate govern...
Corporate Governance ensures that the business of a firm is conducted in an ethical manner in compliance with the laws, rules, and regulations and the industry's best practices. A company’s corporate governance is important to investors since it shows a company’s direction and business integrity.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
2. Outline:-
Concept of corporate governance
Historical development of CG
Models for CGs
Shariah governance system
Shariah oversight in Islamic banks
Functions shariah oversight council
Characteristics of shariah oversight council
Legal observer in Islamic banks
Conclusion
3. Definition of corporate
governance
Corporate governance is the system of rules,
practices and processes by which a company is
directed and controlled.
Corporate governance essentially involves
balancing the interests of a company's many
stakeholders, such as shareholders, management,
customers, suppliers, financiers, government and
the community.
Since corporate governance also provides the
framework for attaining a company's objectives.
4. History
The modern practice of corporate governance has its
roots in the 17th-century Dutch Republic.
The first recorded corporate governance dispute in
history, took place in 1609 between the
shareholders/investors (most notably Isaac Le Maire)
and directors of the Dutch East India Company (VOC),
the world's first formally listed public company.
5. MODELS OF CORPORATE GOVERNANCE
Corporate governance systems vary around the
world.
This because in some cases, corporate
governance focuses on link between a shareholder
and company, some on formal board structures
and board practices and yet others on social
responsibilities of corporations.
However, basically, corporate governance is seen
as the process by which organizations are run.
There is no one model of corporate governance
which is universally acceptable as each model has
its own advantages and disadvantages.
Following are some of the models of corporate
governance.
6. Anglo-American Model
This model is also called an ‘Anglo-Saxon model’
and is used as basis of corporate governance in
U.S.A, U.K, Canada, Australia, and some common
wealth countries.
The shareholders appoint directors who in turn
appoint the managers to manage the business.
Thus there is separation of ownership and control.
The board usually consist of executive directors
and few independent directors. The board often
has limited ownership stakes in the company.
Moreover, a single individual holds both the
position of CEO and chairman of the board.
8. German Model
This is also called as 2 tier board model as there
are 2 boards viz.
The supervisory board and the management
board. It is used in countries like Germany,
Holland, France, etc.
Usually a large majority of shareholders are banks
and financial institutions.
The shareholder can appoint only 50% of members
to constitute the supervisory board.
The rest is appointed by employees and labor
unions.
10. Principles of Corporate
Governance
The principles were developed and permitted by the ministers
of OECD member countries in order to help all countries
governments in their efforts to create legal and regulatory
frameworks for corporate governance in their countries.
The six CG Principles are:
Ensuring the basis of an effective corporate governance
framework
The rights of shareholders and key ownership functions
The equitable treatment of shareholders
The role of stakeholders in corporate governance
Disclosure and transparency
The responsibilities of the board
11. Shari’ah governance system
the Shari’ah Governance System as the set of
institutional and organisational arrangements
through which an Institution Offering Islamic
Financial Services (IFI) ensures that there is
effective independent oversight of Shari’ah
compliance over each of the following structures
and processes:
(i) Issuance of relevant Shari`ah pronouncements and
resolutions;
(ii) Distribution of information on such Shari`ah
pronouncements and resolutions to the operative personnel
of the IFI who monitor the day-to-day compliance with the
Shari`ah pronouncements and resolutions;
(iii) An internal Shari`ah compliance review or audit.
12. Legitimate (Sharia) oversight in
general
The meaning of legitimate (Sharia) oversight in general is
to follow-up, audit, examination and analysis of all works
and behaviors and others banking and financial activities
to ensure they are in accordance with the provisions and
principles of Islamic law as well as matching the behavior
of the bank with scholars’
Views (fatwas), decisions, and recommendations issued
by the Fiqh groups and similar Councils, where using a
range of appropriate means and
Methods that are conformity to Islam and its law, and
finding irregularities, errors and
Correct them as well as reporting these errors to the
authorities concerned, which including the notes,
guidelines, instructions, and describing how to achieve
better development.
13. Specific characteristics of Sharia
oversight
There are specific characteristics of Sharia oversight as
follow:-
1) The operations of Sharia Council include the following-
up all actions and behaviors of individuals, groups,
institutions and others, then evaluating them and review
them in the light of the provisions and principles of the
Islamic Sharia. In addition to that, include the analysis of
errors, irregularities, and deficiencies, if any. Moreover,
illustrating the reasons for errors, shortcomings and
setting the necessary recommendations to resolve
them.
2) Applying Legitimate (Sharia) Council is obligatory, and
applying it is not limited to a particular area or on
particular people, but it should be applied on individuals,
businesses, institutions, government agencies, and
other bodies.
14. Specific characteristics of Sharia
oversight….CONT
3) The principles and standards of Legitimate (Sharia)
Council are derived from the combination of provisions
and principles of the Qur'an and Sunnah as well as
Islamic sources such as scholars’ writings and books in
this subject, as well as fatwas issued from the Council
of Fiqh (jurisprudence) and Fatwa legitimacy in
everything novelty and contemporary.
4) The Sharia (legitimate) oversight is founded to guide
people toward the law of Almighty Allah and establish
commitment with Almighty Allah to help people evaluate
and correct their mistakes and irregularities if happened.
5) There are a team of scholars, scientists and experts,
who take over the work of the Sharia and who enjoy
their independence and neutrality, but the
recommendations of the Commission are binding and
enforceable and they are not considered a consultant
15. The concept of legitimate oversights in Islamic
banks
The legitimate oversight represents the inspection
of commitment by the Islamic Bank on the
provision of Islam and the whole activities of the
bank.
The inspection includes the following activities:
Contracts, agreements,
policies, banking products,
transactions, contracts for incorporation,
financial statements and reports in particular
internal audit and inspection reports by the Central
Bank.
The inspectors have the right to read all records and
transactions.
16. Establishing a Legitimate (Sharia)
Council
1) The formation of Sharia Council in Islamic banks represent a
Legitimate Oversight Council which is unable to fulfill its functions and
achieve its role correctly unless includes three complementary
departments (boards) as follow:
i. The board of fatwa: the board is responsible for issuing fatwas and rooting of
Sharia scientific for developing the mechanisms of Islamic banking, the board of
Fatwa is present at all level of each bank, and contribute to the creation of
legitimate alternatives and practical solutions to the problems of Islamic banks as
well as dealing with the theoretical aspect of Islamic banking.
ii. The board of Sharia inspection: this board is present at all departments of
Islamic bank and its mission to monitor the implementation of advisory opinions
and recommendations of Fatwa Council and ensure that the Islamic bank
management is committed to the directives of the Fatwa Council and the advisory
opinion of them, and the legitimate limitation drawn to them.
iii. The Supreme Oversight Board : This board is at all level of banks, which
constitute the reference for all legitimate oversight bodies in Islamic banks, and this
board review the legitimate foundations of Islamic financial products, and it is
responsible to grant the integrity of Sharia application and the approval of the
principles and provisions of Islamic product, decline contracts, approve documents,
and monitor mechanisms and purposes of Islamic financial products before
processing of classifying them technically and legally according to Sharia
17. The main functions of Oversight Council
1) To ensure the matching of Islamic banking activities with the
provisions and principles of Islamic law, and review Fatwa
position before and decision, and may request all associated
data that support achieving its mission.
2) To refer the banking, financial and administrative transactions
developed for Fatwa board and issue necessary fatwas.
3) Replying all question received by the Sharia Supervisory
Board, and read the request of Muslims to determine the
legitimacy of the transactions with accordance of Islamic law.
4) Prepare periodic reports during the year, and present them to
the Board of Fatwa included the extent of financial
transactions which are comply with the provisions and
principles of Islamic law.
5) Prepare an annual report and submit it to the General
Assembly in a form of a certificate stating the extent of
compliance with the provisions and principles of Islamic law to
all financial transactions carried out by the Islamic bank.
18. The main functions of Oversight
Council….cont.
6) The Council is cooperating with the various
regulatory agencies in the interests of the Islamic
banks.
7) Stating the new fatwas within the economic and
banking sector, which are issued by the
jurisprudence bodies, and evaluate the necessary
fatwas in the Islamic countries as well as examining
its importance.
8) Finding Islamic alternative transactions which found
violating the provisions and principles of the Islamic
Sharia.
9) Following the developments in the Islamic banking
sector to offer new versions of Islamic transactions.
19. It’s compulsory that members of fatwa
council should be available the whole
daily operations?
It is not a compulsory that the members of fatwa Council
should be available the whole day, but they could be
available according to periodic meeting after agreeing and
planning by all members, or can gather immediately after a
call from the sole legal observer in the Islamic bank if it is
necessary, and each member has the right to get all data
and necessary information to fulfill the work as well as
reading the panels, systems, instructions, records,
contracts, and agreement, where the decision of the
Council is obligatory to the banks within its area of work.
20. The role of legal observer in Islamic banks
The legal observer is a representative of legal oversight board in
Islamic banks, and the most important roles are the following:
1) Following up all transactions in Islamic bank, and make sure these
transactions are carried out in accordance with the provisions and
principles of Islamic law, and indicating any irregularities and
mistakes in order to inform the general manager of the bank to
correct them in time.
2) Processing and collecting the issues that need for interpretation and
submitting them to the board of fatwa and Sharia Council in its
regular meetings to take the right decisions about them such as
issuing new fatwas or raising them to other bodies or scholars or
scientific centers specialist in legitimate fatwa.
3) Inviting the Sharia Council Board to held immediate meeting if it is
necessary.
4) Respond to questions sent to him and answering them according to
his knowledge, otherwise raise them to the Sharia Council Board if it
is not possible to answer them individually.
21. The role of legal observer in Islamic
banks…cont.
5) To perform his functions, the observer compiles the necessary
data and information and then conducts interviews with the
executive department in the Islamic bank.
6) Attending meetings of some important committees in the
Islamic Bank, such as: Investment Committee, and the
Committee of Personnel affairs.
7) Supervising the work of his deputies and following-up and
evaluation of their performance and work to overcome the
difficulties they face during the work.
8) Organizing seminars, lectures and meetings related to the
development of employees and developing their knowledge
about the legitimacy of fatwa as well as responding to their
queries.
22. The characteristics of the members of
Legitimate oversight Council
The members of Legitimate Oversight Council should
have special characteristics which distinct them from
other members, such as the characteristic of mufti and
diligent where they are able to judge in banking and
financial issues which are referred to them in order to
issue a decision about it.
Personal Characteristics, academic qualifications
I. Personal Oversights: The qualities that must be met by
members of the Council are numerous such as
neutrality and integrity and avoiding unfairness in
decision making, and to be experiences in Arabic
language and staying away from extremism in religion,
and they should have a good knowledge in science,
Quran, Sunnah, the origins of jurisprudence in Islam,
and the evidence of population, agreement, and the
speech of scholars in religion as well as the purposes of
Sharia.
23. Personal Characteristics,
academic qualifications….cont.
II. Occupational Oversights: the good knowledge of the
member in the details of his work in Islamic banks and the
reality of Islamic banking, also the details of transactions
in Islamic banking according to Sharia and the provisions
of Islam. Therefore, it is important to have a team in the
Council that combines both specialists in financial
transactions and experts in banking aspects to achieve
the Islamization of banking transactions obtained by
Islamic banks, and the Council is characterized by the
following:
1. Staying away from suspicion of personal interest and avoid
involving the members of Legitimate Oversight Council in the
Bank's Board, and the members of the Council contributes in
the bank’s capital and are chosen by the General Assembly of
the Bank.
2. The specialty of the Council is limited in preparing reports and
everything related to the contracts and reviewing them as well
as submitting fatwas and following up the execution of them
and consultation.
3. Moreover, they are responsible on answering any question
related to jurisprudential matters, the authority to stop illegal
24. legitimate observer in Islamic
banks Academic and practical
qualification:
Scientific qualification: The observer should be qualified
scientifically and have some publications in legitimate,
financial, and commercial aspects as in the following:
He should be well familiar and understandable in legal
aspects associated with Islamic law and Fatwas.
Should understand the various transactions in Islamic
banking.
Practical Qualifications: The observer should have adequate
experience in his work not less than 2 years in Islamic banks
and his work should be in the field of legitimate oversight as
well as similar activities in order to be familiar with various
banking aspects and how to apply legitimate Fatwas in
Islamic banks.
25. The independence of legitimate
Oversight Council and the extent of its
obligations.
Independence and Objectivity
The independence of the Legitimate Oversight Council in Islamic
banks is necessary, Banks need a oversight system which is
supervised the financial activities inside the bank and enjoy
objectivity and independence,
And ensure that the bank's operations conform to the provisions of
Islamic law and achieving the purposes of Sharia,
And if there is any doubt in the independence and objectivity of the
Council the confidence of depositors and bank’s customers will be
affected,
Also the absence independent Council would raise doubts to clients
about the level of genuine Islamic banking as well as raising
uncertainty among them which me may lead to stop dealing with the
bank.
26. The independence of Legitimate
Oversight Bod ….cont.
This is divided to the following:
Intellectual independence:
The Council is intellectually independence which enable it to issue decisions with
objectively and freedom, and
The Council can carry out comprehensive oversight of its organization and
access important information and understanding Islamic banking products and its
purpose, where its benefit has an impact on the society and achieve the
legitimate goals.
The Council can participate in the work of the bank from the first inception or to
create Islamic products to the day of release following the financial institution's
support, and the balance of the organization in achieving its goals, and produces
understanding between the institution and the Council, and performing the duties
of the Council with clear mind, and to meet the needs of the community without
the pursuit of profit,
And to improve the relationship and increase cooperation between organization
and management of the bank, and Council is an important factor and not a
hindrance to the progress of the bank.
27. The independence of Legitimate
Oversight Bod ...cont.
The organizational independence:
The organizational independence of the Council is associated with
its position in the organizational structure of the bank, where its
position should belong to the general assembly, and the assembly
should have an authority for employment and termination of jobs,
whereas the management has no power.
To ensure the independence of the Council in Islamic banks there
should be special regulations that organizes the work of the Council
and specify its mission and objectives as well as the relationship
between the internal legitimate Council, the general assembly, the
board of the bank, the employees, and the clients of the bank.
29. CONCLUSION
That Islamic banks become a necessity for work in financial
sector in Islamic and Arabic countries.
Therefore, it is essential to have an oversight system
including a legitimate oversight unit that organizes the work of
Legitimate Oversight Council in a way that grant the
maximum degree of cooperation between the members of the
Council and bank’s management.
The Islamic banks practice their work with accordance to the
provision of Islam and Sharia, and support the banking
functions through special guidelines the follow the Islamic law
in order to employ money correctly and should be Halal as
instructed by Sharia and the principles of Islam in financial
deals, where the legitimate oversight become an essential
part of this role.
Editor's Notes
Organization for Economic Co-operation and Development