Shari`ah Compliance in Islamic BankingaWhy and How?

Abstract

Shari`ah compliance is regarded as the foundation of the Islamic banking. Though Islamic banks give priority on Shari`ah compliance, a number of factors hinder Shari`ah compliance. Shari`ah knowledge, efforts and seriousness of the bank authorities and bank employees are the pre-requisites for complying Shari`ah appropriately. But it is observed that there are lack of Shari`ah knowledge, efforts and seriousness among bank authorities and bank employees. The present study demonstrates the importance of Shari`ah compliance in general and particularly in Islamic banking to make them aware and serious in complying Shari`ah. The reasons for Shari`ah compliance are divided into six, such as: Shari`ah compliance for better life in the earth, Shari`ah compliance for saving life, property and honor, Shari`ah compliance for better life after death, Shari`ah compliance for salvation from punishment in the earth, Shari`ah compliance for salvation from punishment after death and Needs for Shari`ah compliance in Islamic banking. The paper also direct the way how Shari`ah compliance is being carried out at the organizational level.