Shariah governance for islamic financial institutions

The unique operational structures of Islamic financial institutions require the existence of a Shariah governance system within the framework of corporate governance system. However, the scope, boundaries, structure and implementation of the system in question may vary between countries and organizations. This study examines the current standards and regulations relating to Shariah governance system in Islamic financial institutions. For this purpose, firstly literature review was made and the framework of the subject was determined. The relevant international standards have been translated into Turkish and compared in terms of scope and content. On the other hand, the regulations made by different jurisdictions on the subject are scanned and the details are summarized in the comparison table. As a result, it has been determined that the international standards regarding the Shariah governance system in Islamic financial institutions approach the issue from different perspectives and are complementary to each other. Further, it has been precipitated that the optimal regulations on the issue was made by Malaysia, Turkey, Bahrain, Pakistan, Jordan, Oman and Nigeria.