ACCOUNTABILITY AND RESPONSIBILITY OF SHARIAH SUPERVISORY BOARDS IN ISLAMIC FINANCIAL INSTITUTIONS

Abstract

This research aims to identify the accountability and responsibility of Shariah Supervisory Boards in Islamic Financial Institutions. The researcher follows the inductive and comparative approach to reach the objective of this research; through the inductive approach, the researcher will be able to evaluate the efficiency of the accountability and responsibility of Shariah Supervisory Boards in overseeing that Shariah governance is practiced in-line with international standards. The comparative approach compares Shariah Supervisory Boards’ models from different jurisdictions. The finding of this study shows that the implementation of the Shariah Supervisory Board in terms of the Islamic jurisprudential theory is achievable in-line with international standards. However, the actual practice of the Shariah Supervisory Board in Brunei Darussalam is still very limited and requires further development in the improvement of the Shariah Supervisory Board. Therefore, this research presents effective solutions to handle the current challenges in the implementation of the Shariah Supervisory Board, so that the Shariah Supervisory Board would bring effective financial development in Brunei Darussalam, particularly in the Islamic financial services.