Proposing an organizational framework for the Sharīʿah Secretariat of Islamic banks in Bangladesh

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 demographic 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.

One regulator: diversified Shariah governance practices, why?

“…Similarly, 5–8 respondents are adequate for a homogenous study, while 12–20 respondents are sufficient for a non-homogenous group (Crabtree and Miller, 1999). The study saturated with 17 respondents as followed prior research (Alam, 2021; Alam, 2022; Alam et al. , 2022a, b; Tabash et al.…”

Applicability of the Islamic Corporate Governance for Shariah Companies in Malaysia

“…It argues that although Islam does not legally adopt the idea of corporate responsibility, the rules and regulations regarding making choices in an Islamic setting are found in the Holy Quran and the Sunnah, or the ways and manners of the prophet. Several studies also propose a full-time Sharıah Secretariat and several departments for further enhancement of the Sharıah functions (Alam, Ahmad, Muneeza, Tabash, & Rahman, 2022). Thus, this paper will discuss and proposes an Islamic corporate governance framework which can be adopted by all Shariah companies in Malaysia.…”