Accusing the Existence of Sharia Supervisory Board
- DOI
- 10.2991/aebmr.k.200513.138How to use a DOI?
- Keywords
- Sharia Supervisory Board, independence, concurrent position, qualification
- Abstract
The optimalization of the sharia principles application to Islamic Financial Institutions (IFI) is largely determined by the role of the Sharia Supervisory Board (SSB). The Independence, concurrent positions and qualifications of SSB members can affect the optimal performance of its members. In fact, the independence of SSB is influenced by incentives originating from supervised institutions, which can have an impact on less objective supervision. The role of SSB is also not optimal due to the concurred positions and qualifications of SSB members. This study aims to analyze SSB in financial organizations, the regulations that regulate irrelevance in supervisory practices, and apperceive the qualifications of SSB to be in accordance with their duties and functions. This study used the primary and secondary legal materials of normative legal research method. The results of this study found that SSB did not obtain clarity of its existence in carrying out the supervisory function. Analysis of the existence is obtained by 3 indicators: independence, concurrent positions, and qualifications. Thus, this study recommends a review of the regulations related to SSB and establishes an independent institutions that can create optimization of SSB supervision in order to conceive Good Corporate Governance.
- Copyright
- © 2020, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - HR Muhammad Adam AU - Jamal Wiwoho AU - Burhanudin Harahap PY - 2020 DA - 2020/05/20 TI - Accusing the Existence of Sharia Supervisory Board BT - Proceedings of the International Conference on Law, Economics and Health (ICLEH 2020) PB - Atlantis Press SP - 731 EP - 737 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.200513.138 DO - 10.2991/aebmr.k.200513.138 ID - MuhammadAdam2020 ER -