We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Why Islamic Financial Institutions in Need for Corporate Governance Legal Framework - Essay Example

Comments (0) Cite this document
Summary
Islamic financial institutions have been feeling the effects of the recent global financial crisis. For instance, the Ihlas Finance House located in Turkey, the Islamic Bank of South Africa and the Islamic Investment Companies in Egypt have suffered closures…
Download paper
GRAB THE BEST PAPER
Why Islamic Financial Institutions in Need for Corporate Governance Legal Framework
Read TextPreview

Extract of sample
Why Islamic Financial Institutions in Need for Corporate Governance Legal Framework

Islamic finanical systems were particularly sucessful in the pre-colonial era but were methodologicaly replaced by conventional financial institutions during the colonial era. However over the last thirty or so years, Islamic financial institutions have been making a formidible comeback. Today Islamic financial systems have not only been established in Islamic states, but also internationally. Moreover, a number of conventional banks are also offering Islamic financial services evidencing the global acceptance of Islamic financial institutions.
According to the World Bank, Islamic fiancial services are offered globally via 284 financial institutions in 38 countries which are Islamic and non-Islamic states. Like any financial institution, good and effective corporate governance is necessary for the effective and efficient functioning of the institution and for the protection of stakeholder interests. The stakeholder insterest are not always monetary in nature and can include ethics, values and/or religion. For Islamic financial institution, the amin interests of stakeholders is that the institution offering Islamic financial services comply with Shariah principles. Thus Shariah-compliant functioning in an Islamic financial insitution is the key component of corporate governance in Islamic financial institutions.
...
However over the last thirty or so years, Islamic financial institutions have been making a formidible comeback. Today Islamic financial systems have not only been established in Islamic states, but also internationally. Moreover, a number of conventional banks are also offering Islamic financial services evidencing the global acceptance of Islamic financial institutions.1 According to the World Bank, Islamic fiancial services are offered globally via 284 financial institutions in 38 countries which are Islamic and non-Islamic states.2 Like any financial institution, good and effective corporate governance is necessary for the effective and efficient functioning of the institution and for the protection of stakeholder interests. The stakeholder insterest are not always monetary in nature and can include ethics, values and/or religion. For Islamic financial institution, the amin interests of stakeholders is that the institution offering Islamic financial services comply with Shariah principles. Thus Shariah-compliant functioning in an Islamic financial insitution is the key component of corporate governance in Islamic financial institutions.3 The challenge for Islamic financial institutions in formulating good and effective corporate governance constructs is reconciling Shariah-compliant principles with the interests of all stakeholders.4 The stakeholder relationship in Islamic financial institutions is different from conventional financial institutions because profit and risk sharing principles change the nature of the stakeholder relationship.5 Moreover, the definition of property also changes the Islamic financial institution’s perspective on corporate ... Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Why Islamic Financial Institutions in Need for Corporate Governance Essay”, n.d.)
Retrieved from https://studentshare.net/law/4623-why-islamic-financial-institutions-in-need-for
(Why Islamic Financial Institutions in Need for Corporate Governance Essay)
https://studentshare.net/law/4623-why-islamic-financial-institutions-in-need-for.
“Why Islamic Financial Institutions in Need for Corporate Governance Essay”, n.d. https://studentshare.net/law/4623-why-islamic-financial-institutions-in-need-for.
  • Cited: 0 times
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Would Islamic finance have prevented the current global financial crisis Discuss
Would Islamic Finance have Prevented the Current Global Financial Crisis? Islamic financial institutions in the Gulf Corporate Council (GCC) states performed relatively well during the global economic crisis of 2008-2009.1 The successful performance of Islamic financial institutions in the GCC states is attributed to sustained growth, a conservative prudential regulatory framework and the implementation of fundamental Islamic ideology.2 It has been argued that the primary cause of the 2008-2009 global financial crisis was a lack of discipline in the market which essentially gave way to high risk behaviour culminating in a crisis of unprecedented proportions.
18 Pages(4500 words)Essay
Ijarah Contracts Used By Islamic Financial Institutions
Similarities and Differences between Ijarah Contract and Leasing 4. AAOIFI Standards and IFRS Recommended Accounting Treatment of the Ijarah/Leasing Contracts 5. Conclusion 1. Introduction: A sound banking method forms the base for every winning financial system.
10 Pages(2500 words)Essay
Islamic Banking and the Financial Crisis
According to Mavrakis (2009, pp. 2 – 5), Islamic finance has emphasised on trying to remove completely any interest involved in financial transactions. The Quran, which is the Divine revelation presented to Prophet Mohammed, who is the Prophet of Islam, expressly forbids charging of interest, or riba, and Prophet Mohammad himself emphasised on this as mentioned in the Hadith, which is the other source of Islamic law, the Shariah.
12 Pages(3000 words)Essay
BME0006 Emerging and Alternative Financial Markets
A successful market is that which provides for the needs of the consumers and the citizens in general (Consumer Focus, 2010, p.2). Various regulatory procedures then needs to be instituted that advocates for these public needs. A desired regulatory mechanism has certain valued characteristics.
10 Pages(2500 words)Essay
Corporate Governance in Financial Services
Corporate governance is undoubtedly fundamental in the organizational setting. Practices of corporate governance influence and inform the interactions and relations between various stakeholders within and across an organization or industry. This was well observed during the global financial crisis that led to the failure of banks in the UK.
8 Pages(2000 words)Essay
Corporate governance in Islamic banks
The purpose of this study is to explain the position of stockholders in Islamic banks, present the obligations of employees in Islamic banks, identify the level at which the Sharia law is applied on Islamic banks – i.e. whether the principles of Sharia law are strictly followed by employees of all levels in Islamic banks, explain the benefits and pitfalls of corporate governance in Islamic banks will be clearly explained.
9 Pages(2250 words)Essay
Corporate Financial Management ( CORPORATE GOVERNANCE)
It was because of this reason that the regulations such as Sarbanes Oxley were promulgated in order to make it mandatory for the organizations to have a certain degree of corporate governance mechanism within them. The failure of large institutions especially financial services
10 Pages(2500 words)Essay
Comparison between financial engineering and Islamic financial engineering and is financial engineering support the banks and financial company in the credit crunch
173). On the other hand, it can be shown that Islamic financial engineering addresses risks specific to its nature. Islamic financial engineering attempts to reduce the risks arising from Shari-ah non-compliance and the legal risks that can emerge as Muslims interact with
6 Pages(1500 words)Essay
Discuss critically distinctions between Islamic finance regulation and conventional financing of commercial credit
on against interest (riba), risk sharing2 and asset-backed credit.3 An additional feature of Islamic banking is that all products and services are required to be Sharia compliant.4 In general Islamic banks operate with a higher level of discipline and under a tighter
16 Pages(4000 words)Essay
Corporate Governance
More importantly, the chapter dwells on the procedures and methodologies that will be involved in working on the paper. 21 Corporate governance in general has become the new crucible in which corporations are tested and declared worthy of the trust of
5 Pages(1250 words)Essay
Let us find you another Essay on topic Why Islamic Financial Institutions in Need for Corporate Governance Legal Framework for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us