Islamic Banking Regulation and the Role of the Sharia Board: The UK Case Study (Banche Islamiche, Regole E Vigilanza: Il Ruolo Dello Sharia Board)

Posted: 30 Aug 2016 Last revised: 5 Oct 2016

See all articles by Abdelhafid Benamraoui

Abdelhafid Benamraoui

University of Westminster

Yousef Ali Alwardat

King Abdulaziz University

Uzma Ashraf Barton

AIIFL, Faculty of Law, The University of Hong Kong; Georgetown University Law Center

Date Written: June 30, 2016

Abstract

English Abstract: The research paper examines the main views of regulating and supervising of Islamic financial institutions and the role of the Sharia supervisory board in overseeing the operations of these institutions in the UK. The authors draw lessons from the existing regulatory experience of both wholesale and retail financial instruments and suggest areas of improvements in terms of the role of Sharia board. The results reveal clear discrepancies across banks in terms of areas covered by the Sharia board as well as its structure. There are also many weaknesses in the current models used by banks for their Sharia board.

Italian Abstract: Il lavoro esamina le principali tendenze in materia di regolamentazione e vigilanza delle istituzioni finanziarie islamiche e il ruolo dello Sharia supervisory board nel monitoraggio di tali istituzioni nel Regno Unito. Gli autori prendono le mosse dalla normativa che attualmente regola gli strumenti finanziari all'ingrosso e al dettaglio e suggeriscono margini di miglioramento nel ruolo dello Sharia supervisory board. I risultati rivelano differenze tra le banche esaminate per quanto riguarda sia le aree coperte dal board sia la sua stessa struttura. Sono evidenziate anche molte carenze nei modelli attuali utilizzati dalle banche per i loro Sharia supervisory board.

Keywords: Islamic Financial Institutions, Regulation, Sharia Supervisory Board, UK

JEL Classification: G21, G28

Suggested Citation

Benamraoui, Abdelhafid and Alwardat, Yousef Ali and Barton, Uzma Ashraf, Islamic Banking Regulation and the Role of the Sharia Board: The UK Case Study (Banche Islamiche, Regole E Vigilanza: Il Ruolo Dello Sharia Board) (June 30, 2016). Bancaria No. 06/16, University of Hong Kong Faculty of Law Research Paper No. 2016/029, Available at SSRN: https://ssrn.com/abstract=2831890

Abdelhafid Benamraoui (Contact Author)

University of Westminster

309 Regent Street
London, W1R 8AL
United Kingdom

Yousef Ali Alwardat

King Abdulaziz University

P.O.Box 80200
Jeddah, 21589
Saudi Arabia

Uzma Ashraf Barton

AIIFL, Faculty of Law, The University of Hong Kong ( email )

Faculty of Law, Pokfulam Road
Pokfulam
Hong Kong
Hong Kong
+852 9285 4145 (Phone)
+85225593543 (Fax)

HOME PAGE: http://www.aiifl.com

Georgetown University Law Center

DC 20001
United States

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