Corporate Governance In Islamic Finance Basic Concepts And Issues

One of the objectives of this book is to discuss and create greater awareness of some of the crucial issues related to corporate governance in Islamic financial institutions. A second but in fact more important objective is to provide in the light of this discussion certain essential guidelines to improve corporate governance in these institutions and thereby enable them to not only maintain their momentum of growth and international acceptance but also safeguard the interests of all stakeholders. The paper gives particular attention to the mechanisms for corporate governance including the Board of Directors Senior Management shareholders depositors and regulatory and supervisory authorities. It also focuses on the effective management of risks and in particular on creating a supporting environment through moral uplift social legal and institutional checks greater transparency internal controls and Shari'a as well as external audit. The paper also indicates briefly the shared institutions that are needed for effective corporate governance.