Proceedings of the International Conference on Law, Economics and Health (ICLEH 2020)

Accusing the Existence of Sharia Supervisory Board

Authors
HR Muhammad Adam, Jamal Wiwoho, Burhanudin Harahap
Corresponding Author
HR Muhammad Adam
Available Online 20 May 2020.
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/).

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Volume Title
Proceedings of the International Conference on Law, Economics and Health (ICLEH 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
20 May 2020
ISBN
10.2991/aebmr.k.200513.138
ISSN
2352-5428
DOI
10.2991/aebmr.k.200513.138How to use a DOI?
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  -