Gone are the times when those with an interest in IBF had to wait for years to get an opportunity to receive a new book on Islamic banking and finance. Now, the likes of Wiley, Edward Elgar and even IBFIM keep on publishing a variety of books on the topic.
Out of its 43 titles related with Islamic economics, banking and finance, Wiley has already published 3 books in this field since the start of 2015. Since its inaugural publication Understanding Islamic Finance in 2007, the publisher has regularly added to its list of publications on the topic. With such an impressive collection of books on IBF, Wiley has undoubtedly emerged as a leading publisher in this niche area. What distinguishes Wiley from other publishers is its aggressive approach to marketing its titles in academia. Wiley’s recent addition to their already impressive Islamic finance titles is Foundations of Shari’ah Governance of Islamic Banks, written by two young scholars Karim Ginena and Azhar Hamid. The foreword is written by Tariqullah Khan who himself has published on the topic in the context of Islamic risk management and the related regulatory challenges.
The book is written in two parts – the first written by the first author and the second contributed by the other author. It combines theoretical aspects with the practitioner’s perspectives and should be a good source of knowledge for those who are looking to learn the theoretical foundations of Shari’a governance of Islamic banks. The book can safely be used for industry training as well as academic courses on IBF. In terms of the academic level, the book is suitable as a textbook for undergraduate courses in IBF. It is a comprehensive book that can also be used for industry training on Shari’a advisory functions within Islamic financial institutions.
After the publication of Zulkifli Hasan’s Shari’ah Governance in Islamic Banks (published by Edinburgh University Press in 2012) and Corporate Governance in Islamic Financial Institutions by Hussein Elasrag (published in 2014), the book at hand offers extended coverage, especially in terms of practical aspects of Shari’a governance and advisory. Furthermore, Hasan’s is a more scholarly work with academic depth in analyses while Ginena and Hamid focus more on the practice of IBF. It is a definite improvement on what Elasrag covered in his rather short book on the topic.
Each chapter is structured in such a way that it starts with relatively easy concepts and gradually builds up to cover some advanced topics. This makes the book an easy reading from a pedagogical viewpoint. The writing style is adequate and the language is easy to understand for non-native speakers of English and international students. The chapters are fairly detailed with an average length of over 50 pages (apart from the last one, which could have been extended and enriched with more discussion).
After and introductory chapter, the authors discuss the characteristics and objectives of Shari’a in a general Islamic economic framework. This is a general chapter that is perhaps necessary before going into more advanced topics.
Chapter 2 is on corporate and Shari’a governance of Islamic banks, covering a range of topics like the history of the hisba system in Islam to Shari’a risk management and the roles and responsibilities of the board of directors and senior management in the Shari’a assurance process.
Chapter 3 focuses on legal and regulatory aspects of Shari’a governance. The chapter starts with an overview of some of the most widely cited examples of Shari’a risk in the global Islamic financial services industry.
These include the court cases on the Islamic Investment Company of the Gulf (Bahamas) versus Symphony Gems N.V., Shamil Bank of Bahrain versus Beximco Pharmaceuticals, and a recent dispute between Investment Dar and Blom Developments Bank. These cases are used to highlight the need for harmony in the interpretation of Shari’a in modern legal contexts. The role of banking and financial regulators is also discussed in this chapter.
The last chapter in Part 1 covers internal Shari’a control systems. The topics include the components of a Shari’a control system, internal Shari’a audit function, fit and proper criteria for the Shari’a personnel and mechanism for Shari’a governance within Islamic financial institutions.
Part 2 is almost fully dedicated to Shari’a supervisory boards (SSBs), an institution that has assumed paramount importance in the contemporary practice of IBF. It begins with a chapter on SSBs, explaining the nomenclature and the history of SSBs in the context of IBF. There are sections on Accounting and Auditing Organisations for Islamic financial institutions (AAOIFI), Islamic Financial Services Board (IFSB) and the Fiqh Academy of Organisation of Islamic Cooperation (OIC). It is a detailed chapter covering the regulation of SSBs and the different models used in different parts of the Islamic world.
Chapter 6 focuses on the qualifications and regulations related to the members of the SSBs. Chapter 7 extends the analysis to cover issues like the authority of the SSB and the management of conflict arising from the involvement of Shari’a scholars in the practice of IBF. Chapter 8 further explains the process of Shari’a supervision and the responsibilities of the SSB. The book ends with a brief chapter on the emerging role of Shari’a advisory firms.
Overall, Foundations of Shari’ah Governance of Islamic Banks is a good book on the topic. Although it lacks academic rigour, it is yet a useful book for those who are looking for practical guidance on Shari’a matters related with IBF. Professor Khurshid Ahmad, a leading proponent of the Islamic economic system, aptly says about the book. “[It] is a timely effort to bring into sharp focus this unique dimension of Islamic banking. It contains a well-researched, fully documented, fairly detailed, and authentic exposition of the key concepts of Shari’a, Islamic guidelines for banking governance and some of the major efforts made over the last four decades to develop operational mechanisms to make banking Shari’a compliant. This book is an essential read for those who want to understand Islamic banking, and more so, for those engaged in the Islamic banking industry anywhere in the world.”
