An analysis of the role and function of the Shaiah control in Islamic banks (Ph.D. Dissertation)

Religious or shari`a control in Islamic banks is examined. Shari`a control committees and the their effects on the behavior of clients, shareholders, investors, etc. are considered. A survey questionnaire and interviews related to practices and profiles of institutions and clients is the core of the research effort. The results show that the role of religious committee varies from bank to bank. The Committee does however play an effective role in increasing halal (permissible) activities in Islamic banks. Their key role seems to be, according to the author, performing ''pre-audit'' function to assure that fatwa (religious decision) is carried out correctly. In international trade, the committees have to submit written reports - religious auditor's report - to the clients confirming the halal activities.