Islamic Banking and Finance: Shariah Governance in Theory and Practice

Mohammad Mansoor Khan


This paper investigates the case of Shariah governance and compliance at Islamic banks worldwide. It explores fundamental features of Islamic banking policy instruments from Shariah perspectives in order to appraise the business affairs of Islamic banks. This paper finds that Shariah governance has severely failed to ensure religious, ethical and social sanctities of Islamic banks. The personal, consumer finance and deposit-taking operations at Islamic banks are based on interest and time value of money, and a crystal clear case of Shariah violations. The majority of Muslim business and societal groups have shown increasing concerns over the serious Shariah governance and compliance issues at Islamic banks. There are increasing pressures on Islamic banks to prove themselves not only financially viable but also Shariah-compliant and valued-based entities.

Full Text:



Copyright (c) 2019 Journal of Management Research

Journal of Management Research ISSN 1941-899X


Copyright © Macrothink Institute


To make sure that you can receive messages from us, please add the '' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.