الحوكمة الشرعية ودورها في الحماية من مخاطر السمعة الشرعية في البنوك الإسلامية

Sharia Governance and its Role in Protecting against Sharia-Reputational Risks in Islamic Banks

Abstract

Sharia governance is one of the systems upon which Islamic banks rely to monitor their operations from a Sharia perspective. The Sharia governance system is considered a fundamental factor in preserving the reputation of an Islamic bank from a Sharia perspective, as it works to ensure that the bank's transactions, services, and all its activities remain Sharia-compliant. This constitutes the identity of an Islamic bank and the most important factor in guiding customers to engage with it. This study examines the definition of Sharia governance, its tools, and its structure in Islamic banks, and its role in mitigating the Sharia reputational risks of Islamic banks. The study concluded that the Sharia governance system in Islamic banks is an ongoing process comprised of several parties. Sharia governance is not solely the work of the Sharia Supervisory Board, but rather a joint effort by the Board of Directors, the Sharia Board, and the executive management of the Islamic bank. The study also concluded that the effectiveness of the Sharia governance system plays a role in mitigating Sharia reputational risks in Islamic banks, enhancing the visibility of the Sharia oversight role in Islamic banks, and reducing Sharia violations and errors that could directly and indirectly impact the Sharia reputation of an Islamic bank, potentially leading to significant risks affecting the bank's financial results.