Accountability and level of competency of the Shariah Supervisory Board in Bank Muamalat Malaysia Berhad

The establishment of Islamic banking and finance is prevailed by Shariah principles. In this regard, it is important to have a comprehensive, robust and well-functioning Shariah audit and governance to guarantee that all products and services offered by the Islamic Financial Institutions (IFIs...

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Main Author:	Mohamad Yunus, Mohd Hadli Shah
Format:	Thesis
Language:	English
Published:	2016
Subjects:	Banks and banking - Religious aspects - Islam Finance (Islamic law) Finance - Religious aspect - Islam
Online Access:	http://psasir.upm.edu.my/id/eprint/65965/1/GSM%202016%204%20UPM%20IR.pdf
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id	my-upm-ir.65965
record_format	uketd_dc
spelling	my-upm-ir.659652018-11-16T00:26:15Z Accountability and level of competency of the Shariah Supervisory Board in Bank Muamalat Malaysia Berhad 2016-06 Mohamad Yunus, Mohd Hadli Shah The establishment of Islamic banking and finance is prevailed by Shariah principles. In this regard, it is important to have a comprehensive, robust and well-functioning Shariah audit and governance to guarantee that all products and services offered by the Islamic Financial Institutions (IFIs) are widely acknowledged as Shariah compliant. The purpose of this study is to examine the role played by Shariah Supervisory Board (SSB) of an IFI in ensuring the accountability conception and the level of auditing competency is consistent with the Shariah principles. The focus of the study is on aspects of three issues, which are: Shariah compliance, accountability and level of auditing competency. In this study, the qualitative research method was applied and ethnographic research approach was employed so as to understand the social context on the accountability and level of competency amongst SSB. The data gathering process included three sources of empirical materials. First is through Bank Muamalat Malaysia Berhad’s (BMMB’s) website, newsletter and other publicly accessible materials. Second is by inconspicuous on-site observation: by participation in meetings, planning sessions and in other internal gatherings. Third is through observations and informal conversations supplemented by semi-structured interviews with the key respondents represented by the members of Shariah Committee (SC) and Shariah Department staff of BMMB Head Office for a period of two months. The findings of this study primarily revealed that the SSB members deal in accordance with regards to the Shariah compliance comprehension in association with IFI interpretation and accountability conception. This study also found that the epistemological conception of accountability emphasises on the subjection, transparency, independence, confidentiality, faith and justice which reflects the relationship between self and statutory regulations are positively influenced by Islamic business ethic. Hence, the association of accountability and level of auditing competency has a significant influence in supporting SSB supervising the IFI accordingly. This study will definitely contribute to a practical conceptual framework of solutions to the IFI. At the same time, it may contribute a full range of knowledge and skills to the standard setter in determining the problems, designing and implementing suitable remedial measures. In addition, it will benefit the educational institutions in Malaysia especially in the development of curriculum and training modules for Shariah audit that fulfill the Shariah requirements. The educational institutions must also take up the challenge to produceable and certified Shariah auditors’ graduates to cater for thefuture demand globally. Furthermore, the findings of this research may be used as guidelines and evaluation for future references. Banks and banking - Religious aspects - Islam Finance (Islamic law) Finance - Religious aspect - Islam 2016-06 Thesis http://psasir.upm.edu.my/id/eprint/65965/ http://psasir.upm.edu.my/id/eprint/65965/1/GSM%202016%204%20UPM%20IR.pdf text en public masters Universiti Putra Malaysia Banks and banking - Religious aspects - Islam Finance (Islamic law) Finance - Religious aspect - Islam
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English
topic	Banks and banking - Religious aspects - Islam Finance (Islamic law) Finance - Religious aspect - Islam
spellingShingle	Banks and banking - Religious aspects - Islam Finance (Islamic law) Finance - Religious aspect - Islam Mohamad Yunus, Mohd Hadli Shah Accountability and level of competency of the Shariah Supervisory Board in Bank Muamalat Malaysia Berhad
description	The establishment of Islamic banking and finance is prevailed by Shariah principles. In this regard, it is important to have a comprehensive, robust and well-functioning Shariah audit and governance to guarantee that all products and services offered by the Islamic Financial Institutions (IFIs) are widely acknowledged as Shariah compliant. The purpose of this study is to examine the role played by Shariah Supervisory Board (SSB) of an IFI in ensuring the accountability conception and the level of auditing competency is consistent with the Shariah principles. The focus of the study is on aspects of three issues, which are: Shariah compliance, accountability and level of auditing competency. In this study, the qualitative research method was applied and ethnographic research approach was employed so as to understand the social context on the accountability and level of competency amongst SSB. The data gathering process included three sources of empirical materials. First is through Bank Muamalat Malaysia Berhad’s (BMMB’s) website, newsletter and other publicly accessible materials. Second is by inconspicuous on-site observation: by participation in meetings, planning sessions and in other internal gatherings. Third is through observations and informal conversations supplemented by semi-structured interviews with the key respondents represented by the members of Shariah Committee (SC) and Shariah Department staff of BMMB Head Office for a period of two months. The findings of this study primarily revealed that the SSB members deal in accordance with regards to the Shariah compliance comprehension in association with IFI interpretation and accountability conception. This study also found that the epistemological conception of accountability emphasises on the subjection, transparency, independence, confidentiality, faith and justice which reflects the relationship between self and statutory regulations are positively influenced by Islamic business ethic. Hence, the association of accountability and level of auditing competency has a significant influence in supporting SSB supervising the IFI accordingly. This study will definitely contribute to a practical conceptual framework of solutions to the IFI. At the same time, it may contribute a full range of knowledge and skills to the standard setter in determining the problems, designing and implementing suitable remedial measures. In addition, it will benefit the educational institutions in Malaysia especially in the development of curriculum and training modules for Shariah audit that fulfill the Shariah requirements. The educational institutions must also take up the challenge to produceable and certified Shariah auditors’ graduates to cater for thefuture demand globally. Furthermore, the findings of this research may be used as guidelines and evaluation for future references.
format	Thesis
qualification_level	Master's degree
author	Mohamad Yunus, Mohd Hadli Shah
author_facet	Mohamad Yunus, Mohd Hadli Shah
author_sort	Mohamad Yunus, Mohd Hadli Shah
title	Accountability and level of competency of the Shariah Supervisory Board in Bank Muamalat Malaysia Berhad
title_short	Accountability and level of competency of the Shariah Supervisory Board in Bank Muamalat Malaysia Berhad
title_full	Accountability and level of competency of the Shariah Supervisory Board in Bank Muamalat Malaysia Berhad
title_fullStr	Accountability and level of competency of the Shariah Supervisory Board in Bank Muamalat Malaysia Berhad
title_full_unstemmed	Accountability and level of competency of the Shariah Supervisory Board in Bank Muamalat Malaysia Berhad
title_sort	accountability and level of competency of the shariah supervisory board in bank muamalat malaysia berhad
granting_institution	Universiti Putra Malaysia
publishDate	2016
url	http://psasir.upm.edu.my/id/eprint/65965/1/GSM%202016%204%20UPM%20IR.pdf
_version_	1747812371262341120

Accountability and level of competency of the Shariah Supervisory Board in Bank Muamalat Malaysia Berhad

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