Shariah Committee Independence: An Insider's View

Abstract

Shariah committee independence has been highlighted by the Shariah Governance Framework as an important credential for an effective functioning of Shariah committees. This study examined Shariah committee independence of local IFIs as perceived by the shariah committee members of the IFIs. The results identified Shariah committee independence safeguards and threats, and implied better effectiveness through clearly defined meaning of independence and guidelines or code of best practices as a guide for the committee and related parties.

Keywords: Governance, Shariah Governance, Independence, Safeguards, Threats

JEL Classification: G21, G34, M40, M1