Establishment - SAC of BNM was established in May 1997 as the highest Shariah authority in Islamic finance in Malaysia under Central Bank Act 2003. - SC established first by Bank Islam Malaysia Behad under Islamic Banking Act 1983 as the shariah advisor to the particular institution and followed by all the islamic bank or bank that provide islamic services and products. - SC of Islamic bank is a committee set up in the respective bank with a purpose to ensure Shariah compliance to its operations and products. This establishment is a statutory requirement provided under the Central Bank of Malaysia Act 2009 and Islamic Financial Services Act 2013.
Function - The function of SAC is for the ascertainment of Islamic law for the purposes of Islamic banking business, takaful business, Islamic financial business, Islamic development financial business, or any other business, which is based on Shariah principles and is supervised and regulated by Bank Negara Malaysia. SAC also act as the advisor to bank on any shariah issue related to financial matter and issue a ruling upon reference to it in accordance with its part and also advise the IFIs or any other person under any written law. From the line above, we understand that SAC’s scope of responsibility is for the business related to banking and finance in the national level and nurture all those institutions especially in any issue related to shariah. - Whether the SC of Islamic bank is responsible to evaluate the new products of the institution, review the existing products or services, endorse and validate all documents, monitor the operations of the bank, provide written shariah opinion, and act as the assistant of SAC of BNM. And we could see that the scope of SC’s responsibility is towards the management of the Islanic bank/IFI.
Appoinment - The appointment of SAC of BNM made by Yang Dipetuan Agung (YPDA) on the advice of Minister after consultation with Bank Negara Malaysia. - While the appointment of SC of islamic bank made by the Board of Directors of respective bank or the shareholders.
References - BNM website, Shariah Advisory Council - Slideshare, Shariah Advisory Council - Venardos, Angelo. Islamic Banking and Finance in South East Asia and Its Development and Future - Central Bank Act 2003 - Islamic Financial Services Act 2013
Establishment - SAC of BNM was established in May 1997 as the highest Shariah authority in Islamic finance in Malaysia under BAFIA 1989. - SC established first by Bank Islam Malaysia Behad under Islamic Banking Act 1983 as the shariah advisor to the particular institution and followed by all the islamic bank or bank that provide islamic services and products. - SC of Islamic bank is a committee set up in the respective bank with a purpose to ensure Shariah compliance to its operations and products. This establishment is a statutory requirement provided under the Central Bank of Malaysia Act 2009 and Islamic Financial Services Act 2013 and both SAC and SC are regulated under these acts.
Function - The function of SAC is for the ascertainment of Islamic law for the purposes of Islamic banking business, takaful business, Islamic financial business, Islamic development financial business, or any other business, which is based on Shariah principles and is supervised and regulated by Bank Negara Malaysia. SAC also act as the advisor to bank on any shariah issue related to financial matter and issue a ruling upon reference to it in accordance with its part and also advise the IFIs or any other person under any written law. From the line above, we understand that SAC’s scope of responsibility is for the business related to banking and finance in the national level and nurture all those institutions especially in any issue related to shariah. - Whether the SC of Islamic bank is responsible to evaluate the new products of the institution, review the existing products or services, endorse and validate all documents, monitor the operations of the bank, provide written shariah opinion, and act as the assistant of SAC of BNM. And we could see that the scope of SC’s responsibility is towards the management of the Islanic bank/IFI.
Appoinment - The appointment of SAC of BNM made by Yang Dipetuan Agung (YPDA) on the advice of Minister after consultation with Bank Negara Malaysia. - While the appointment of SC of islamic bank made by the Board of Directors of respective bank or the shareholders.
References - BNM website, Shariah Advisory Council - Slideshare, Shariah Advisory Council - Venardos, Angelo. Islamic Banking and Finance in South East Asia and Its Development and Future - Central Bank Act 2003 - Islamic Financial Services Act 2013
SAC and SC have strong relation with AAIOFI, Basel Committee and IFSB as these international organization set the guidelines that can be used as the references of both SAC and SC in determining any policy or in reviewing any product, services or documents issued by the bank of IFIs.
Among the standards has been issued by AAIOFI is Governance Standard for IFIs that also mention about the appointment, composition and report of Shariah Supervisory Board, Shariah review and also regarding the independence of Shariah Boards.
IFSB-10 related Shariah Governance also highlighted some points related to Shariah Board and explain key elements of Shariah Governance of IFIs.
As Basel Committee, in Basel 2 pillar 2 also has written the principles regarding supervisory review which is strongly related with the function of SAC and SC of the IFIs. Both of these boards are also responsible to adjust and adapt the guidelines made by this Committee, so it can be relevant to be practiced by the Islamic financial institutions (because the background of Basel itself is conventional).
Establishment
ReplyDelete- SAC of BNM was established in May 1997 as the highest Shariah authority in Islamic finance in Malaysia under Central Bank Act 2003.
- SC established first by Bank Islam Malaysia Behad under Islamic Banking Act 1983 as the shariah advisor to the particular institution and followed by all the islamic bank or bank that provide islamic services and products.
- SC of Islamic bank is a committee set up in the respective bank with a purpose to ensure Shariah compliance to its operations and products. This establishment is a statutory requirement provided under the Central Bank of Malaysia Act 2009 and Islamic Financial Services Act 2013.
Function
- The function of SAC is for the ascertainment of Islamic law for the purposes of Islamic banking business, takaful business, Islamic financial business, Islamic development financial business, or any other business, which is based on Shariah principles and is supervised and regulated by Bank Negara Malaysia. SAC also act as the advisor to bank on any shariah issue related to financial matter and issue a ruling upon reference to it in accordance with its part and also advise the IFIs or any other person under any written law.
From the line above, we understand that SAC’s scope of responsibility is for the business related to banking and finance in the national level and nurture all those institutions especially in any issue related to shariah.
- Whether the SC of Islamic bank is responsible to evaluate the new products of the institution, review the existing products or services, endorse and validate all documents, monitor the operations of the bank, provide written shariah opinion, and act as the assistant of SAC of BNM.
And we could see that the scope of SC’s responsibility is towards the management of the Islanic bank/IFI.
Appoinment
- The appointment of SAC of BNM made by Yang Dipetuan Agung (YPDA) on the advice of Minister after consultation with Bank Negara Malaysia.
- While the appointment of SC of islamic bank made by the Board of Directors of respective bank or the shareholders.
References
- BNM website, Shariah Advisory Council
- Slideshare, Shariah Advisory Council
- Venardos, Angelo. Islamic Banking and Finance in South East Asia and Its Development and Future
- Central Bank Act 2003
- Islamic Financial Services Act 2013
Establishment
ReplyDelete- SAC of BNM was established in May 1997 as the highest Shariah authority in Islamic finance in Malaysia under BAFIA 1989.
- SC established first by Bank Islam Malaysia Behad under Islamic Banking Act 1983 as the shariah advisor to the particular institution and followed by all the islamic bank or bank that provide islamic services and products.
- SC of Islamic bank is a committee set up in the respective bank with a purpose to ensure Shariah compliance to its operations and products. This establishment is a statutory requirement provided under the Central Bank of Malaysia Act 2009 and Islamic Financial Services Act 2013 and both SAC and SC are regulated under these acts.
Function
- The function of SAC is for the ascertainment of Islamic law for the purposes of Islamic banking business, takaful business, Islamic financial business, Islamic development financial business, or any other business, which is based on Shariah principles and is supervised and regulated by Bank Negara Malaysia. SAC also act as the advisor to bank on any shariah issue related to financial matter and issue a ruling upon reference to it in accordance with its part and also advise the IFIs or any other person under any written law.
From the line above, we understand that SAC’s scope of responsibility is for the business related to banking and finance in the national level and nurture all those institutions especially in any issue related to shariah.
- Whether the SC of Islamic bank is responsible to evaluate the new products of the institution, review the existing products or services, endorse and validate all documents, monitor the operations of the bank, provide written shariah opinion, and act as the assistant of SAC of BNM.
And we could see that the scope of SC’s responsibility is towards the management of the Islanic bank/IFI.
Appoinment
- The appointment of SAC of BNM made by Yang Dipetuan Agung (YPDA) on the advice of Minister after consultation with Bank Negara Malaysia.
- While the appointment of SC of islamic bank made by the Board of Directors of respective bank or the shareholders.
References
- BNM website, Shariah Advisory Council
- Slideshare, Shariah Advisory Council
- Venardos, Angelo. Islamic Banking and Finance in South East Asia and Its Development and Future
- Central Bank Act 2003
- Islamic Financial Services Act 2013
SAC and SC have strong relation with AAIOFI, Basel Committee and IFSB as these international organization set the guidelines that can be used as the references of both SAC and SC in determining any policy or in reviewing any product, services or documents issued by the bank of IFIs.
ReplyDeleteAmong the standards has been issued by AAIOFI is Governance Standard for IFIs that also mention about the appointment, composition and report of Shariah Supervisory Board, Shariah review and also regarding the independence of Shariah Boards.
IFSB-10 related Shariah Governance also highlighted some points related to Shariah Board and explain key elements of Shariah Governance of IFIs.
As Basel Committee, in Basel 2 pillar 2 also has written the principles regarding supervisory review which is strongly related with the function of SAC and SC of the IFIs. Both of these boards are also responsible to adjust and adapt the guidelines made by this Committee, so it can be relevant to be practiced by the Islamic financial institutions (because the background of Basel itself is conventional).