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Inaugural Roundtable Meeting of Centralised Shariah Advisory Authorities in Islamic Finance

Ref No : 10/18/02 02 Oct 2018 Embargo : For immediate release    

Bank Negara Malaysia today hosted an inaugural Roundtable Meeting of Centralised Shariah Advisory Authorities in Islamic finance in Kuala Lumpur.

The meeting marks the first platform that gathers more than 30 senior Shariah advisory authorities and supervisory authorities[1] from seven jurisdictions to exchange experiences, views and ideas on Shariah issues in Islamic finance. The roundtable meeting aims to foster greater collaboration among Shariah scholars who are members of centralised Shariah board and financial supervisory authorities in their jurisdictions. The meeting was chaired by Datuk Dr. Mohd Daud Bakar, Chairman of the Shariah Advisory Council of Bank Negara Malaysia.

The meeting recognised the importance of fostering greater connectivity and cooperation among Shariah scholars and financial supervisory authorities to unlock the true and full value proposition of Islamic finance. The crucial role of Shariah scholars in resolving and providing solutions to contemporary issues facing the ummah by ensuring transparent and credible Shariah rulings was also discussed.

In the area of governance, the meeting also exchanged views and discussed experiences in setting up a centralised mechanism for Shariah advisory, its operations and decision making process in the various jurisdictions. The delegates deliberated the challenges faced and measures adopted by the different jurisdictions in addressing emerging issues. These challenges include certainty and enforceability of Shariah requirements, transparency and clarity of Shariah rulings and implications of a rapidly evolving operating environment on Shariah deliberations. The roundtable meeting agreed that the continuation of this platform is important to network and share experience among Shariah scholars and financial supervisory authorities.


About the Shariah Advisory Authorities in Islamic Finance

The Shariah advisory authority is established to deliberate on Shariah matters in Islamic finance. Each country adopts a different model and approach in establishing their respective Shariah advisory authority, commensurate with the size and complexity of its Islamic finance industry as well as the local custom. The first establishment was in 1992, which denotes the first in history of Shariah advisory authority in Islamic finance. To date, 14 countries have formed their respective Shariah authorities, marking Central Bank of United Arab of Emirates as the recent one in 2017. The role as the Shariah advisory authority has positively impacted the development of Islamic finance, particularly in preserving the sanctity of Shariah and sustaining public confidence with Shariah rulings that have created a conducive environment for the industry to innovate and grow. 

 

 

 

[1] Shariah Advisory Council of Bank Negara Malaysia, Centralized Shariah Board of Central Bank of Bahrain, Syariah Financial Supervisory Board of Brunei Darussalam, Shariah Advisory Council of Maldives Monetary Authority, Higher Shariah Supervisory Board of Central Bank of Sudan, Higher Shariah Authority of Central Bank of the United Arab Emirates, Financial Regulation Authority Council of Experts of Central Bank of Nigeria.

Bank Negara Malaysia
02 Oct 2018

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