A REVIEW ON SHARIA REGULATORY FRAMEWORK (SRFW) OF ISLAMIC FINANCIAL INSTITUTIONS (IFIs) MALAYSIA BASED ON ISLAMIC SPIRITUAL QUALITIES

Abstract

This research was conducted to identify the Malaysian Sharia Governance Exposure draft act issued on 09 November 2017, consists of 34 pages by Central Bank of Malaysia (BNM). Hence the complete compliance of Malaysian Sharia Regulatory Framework SRFW remained the subject matter of the discussion of most of researchers which need more review on its documents research. This paper has two objectives. First, to identify Malaysian SRFW sections that are related to Sharia committees (SC). Second, to review Malaysian SRFW on recruitment criteria based on Islamic spiritual qualities. According to the previous studies a document research would be reviewed, analytical and descriptive approaches would also be adopted. Thus, there was a certainty between current laws of this regulatory draft and the current practices of Islamic banks in Malaysia, except otherwise as explained thoroughly. However, this study also proved and acknowledged Malaysian SRFW among the advanced and the most inclusive in today’s world particularly with the adoption of Islamic spiritual qualities in its recruitment criteria. It comprises of Islamic Banking Act (IBA) 1983, Sharia Governance Framework (SGF) 2010, Islamic Financial Services Act (IFSA) 2013 and Sharia governance exposure draft (SGE) 2017. It can be easily concluded of positive use and adoption of the Malaysian SRFW by other Islamic countries for smooth take-up of Islamic Banking in their countries.