Evaluating Qatar Central Bank’s Governance on Islamic Banks in Qatar

Hamad Alsayed,M.Y Jaaffar,A Muhammad,A Abdullah Sani

doi:10.1051/shsconf/20173600009

Abstract

This paper aims to evaluate the governance of Qatar Central bank (QCB) on Islamic banks (IBs). Related-data will be taken from secondary sources. It is expected that QCB efficiently governs IBs in a way fulfills its unique nature. However, evidence suggests a number of issues in QCB governance towards IBs when looking at various dimensions. In Islamic Financial product dimension, QCB has no clear indications for enforcing its tawaruq-related regulations. This results on the extreme usage of tawaruq by IBs. In the social dimension, while it is suggested by early Islamic economists promoting equity products, such products are very slightly used by IBs in Qatar. The absence of QCB’s regulations to promote such social aspects has led to the concentration of debt-based products. In terms of Sharia governance (SG) dimension, a number of issues have been raised such as the absence of cross-boarding regulations and the proper definition for the qualifications of sharia scholars. It is recommended, thus, to enforce tawaruq regulations properly, to create social-oriented regulations, to fix CG related issues discussed in this paper, and to unify Islamic financial contracts among IBs.

Highlights

Research BackgroundIt is required for corporate governance (CG) in Islamic financial institutions (IFIs) to have additional layer of governance for ensuring sharia-compliance known as sharia governance (SG)
This paper aims to evaluate the governance of Qatar Central bank (QCB) in Islamic banks (IBs) in Qatar
This paper aims to evaluate the governance of Qatar Central bank (QCB) on Islamic banks (IBs)

Summary

Introduction

Research BackgroundIt is required for corporate governance (CG) in Islamic financial institutions (IFIs) to have additional layer of governance for ensuring sharia-compliance known as sharia governance (SG). Hasan (2012) has studied the role of regulatory authorities of both Gulf Corporate Countries (GCC) and Malaysia in sharia governance of IFIs. He provides insights on the different types of regulatory authorities in these countries and to what extent they achieve the efficiency in the IF industry. His findings suggest that the sharia governance practiced in Malaysia is more regulated and transparent than the one in GCC. He added that Malaysia is superior on GCC in having a central sharia body, known as Sharia Advisory Counsel, that is involved in both fatwa issuance and dispute resolving

Objectives

Methods

Discussion

Conclusion