Standardisation of Governance Standards for the Islamic Banking Sector

Focuses on the standardisation of corporate and shari'ah governance arrangements of Islamic Financial Institutions particularly the Islamic banks and its aims in protecting stakeholders' financial interest. It reviews the evolution and standardisation gone through the conventional banks and examine if it is necessary to standardise the Islamic financial institutions particularly the Islamic banks. Ir also reviews the existing corporate and shari'ah governance standards of Accounting Auditing Organisation for Islamic Financial Institutions (AAOIFI) and Islamic Financial Services Board (IFSB)and comparing the existing structure in the Islamic banks and particularly the arrangements put in place to protect the Stakeholders' financial interests. It discusses shortcomings notably in terms of potential conflict of interest between shareholders and other stakeholders in the Islamic bank structure.