Abstract
PurposeSharīʿah Secretariat plays a significant role in assisting Sharīʿah Supervisory Boards (SSBs) in their role in achieving Sharīʿah compliance in Islamic banks (IBs). The key objective of the study is to develop a organizational framework of the Sharīʿah Secretariat for the IBs in Bangladesh.Design/methodology/approachThe study applied qualitative case study research. The data have been collected from 17 respondents through semi-structured interviews from IBs and professional experts in Bangladesh.FindingsThis study proposes a full-time Sharīʿah Secretariat and several departments for further enhancement of the Sharīʿah functions in IBs in Bangladesh. The framework proposed in this study covers the formation, functions, composition, qualification, reporting line, independence, remuneration and terms of appointment of the Sharīʿah Secretariat to set a uniform benchmark for all IBs in Bangladesh. It is anticipated that the outcomes of this research will assist to further strengthen the Sharīʿah governance of IBs in Bangladesh.Research limitations/implicationsThis research contributed to the national and global regulatory authorities and IBs by proposing a Sharīʿah Secretariat framework for the smooth functioning of the IBs in Bangladesh. The framework proposed in this study covers the formation, functions, composition, qualification, reporting line, independence, remuneration and terms of appointment of Sharīʿah Secretariat.Originality/valueThis study proposed a framework which is considered the first organizational framework so far for the Sharīʿah Secretariat of IBs in Bangladesh. IBs can apply this proposed framework to form their Sharīʿah Secretariat structure.
Highlights
Sharıah governance (SG) is the complete system by which Islamic banks (IBs) and Islamic financial institutions (IFIs) ensure Sharıah (Islamic law) principles in business activities and transactions (Ginena and Hamid, 2015)
They found that the main reasons for the absence of a comprehensive Sharıah governance framework (SGF) for IBs in Bangladesh are the intentions of regulators and concerned stakeholders and the lack of qualified Sharıah scholars (Alam et al, 2020a) the prior research suggested the formation of a central Sharıah regulatory authority for IBs in Bangladesh (Abdullah and Rahman, 2017; Hassan et al, 2017; Alam et al, 2019, 2020b, c; Alam, 2020)
The Sharıah Secretariat (SS) can be formed with a full-time Supervisory Boards (SSBs) member and Sharıah officers consisting of several Sharıah functioning units (State Bank of Pakistan, 2018)
Summary
Sharıah governance (SG) is the complete system by which Islamic banks (IBs) and Islamic financial institutions (IFIs) ensure Sharıah (Islamic law) principles in business activities and transactions (Ginena and Hamid, 2015). Islamic Financial Services Board (IFSB) (2009) defines the SG system as a process of ensuring Sharıah compliance in the overall functions and activities of an IFI. The key aim of SG is to enhance the application of Sharıah rules by IFIs. The key aim of SG is to enhance the application of Sharıah rules by IFIs The adoption of such rules confirms the proper functioning of SG, ensures Sharıah compliance and protects the interests of depositors, customers, shareholders, as well as all relevant stakeholders of the IFI (Alam et al, 2019). It is imperative to have a sound Sharıah governance framework (SGF) for IFIs. Institutional Sharıah Supervisory Boards (SSBs), the Sharıah Secretariat (SS) as well as Sharıah officers perform their functions based on the SG guidelines provided by the central bank and developed by individual IBs. The Accounting and Auditing
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