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Rethinking the strategic reach of Sharia boards. Abdel-Maoula Chaar. Abdel-Maoula Chaar. AM Chaar – Oman 1 st Islamic Finance & Banking Conference - Oman – January 2012. Overview of the presentation. Sharia Supervisory boards as guardian of Sharia compliancy - PowerPoint PPT Presentation
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AM Chaar – Oman 1st Islamic Finance & Banking Conference - Oman – January 2012
Abdel-Maoula Chaar
Rethinking the strategic reach of Sharia boards
Abdel-Maoula Chaar
AM Chaar – Oman 1st Islamic Finance & Banking Conference - Oman – January 2012
AM Chaar – Oman 1st Islamic Finance & Banking Conference - Oman – January 2012
Overview of the presentation
Sharia Supervisory boards as guardian of Sharia compliancy
Reputation and Sharia boards efficiency
The strategic reach of Sharia boards
AM Chaar – Oman 1st Islamic Finance & Banking Conference - Oman – January 2012
Case Study: Lebanese Banks
BANK TYPE YEAR
Al Baraka – Lebanon Fully Fledged 1979
Lebanese Islamic Bank Subsidiary 2005
BLOM Development Subsidiary 2005
Arab Finance House Fully Fledged 2006
AM Chaar – Oman 1st Islamic Finance & Banking Conference - Oman – January 2012
Sharia Boards primary task
Ensuring the Sharia compliency of the operations
Suggesting Sharia compliant solutions to the bank
Reducing the liability of newness by giving legitimacy to the banks
AM Chaar – Oman 1st Islamic Finance & Banking Conference - Oman – January 2012
Assessing the scolars’ proficiency
Measuring the technical efficiency of the financial operations
Evaluating the soundness of the fatawas
Using the reputation as proxy
AM Chaar – Oman 1st Islamic Finance & Banking Conference - Oman – January 2012
Evaluating reputation
Incapacity to assess the proficiency of scholars
Perceived reputation linked to pointers
AM Chaar – Oman 1st Islamic Finance & Banking Conference - Oman – January 2012
Evaluating reputation
Scholar
Clients
Bank1REPUTATION
ATTRACKS
JOIN
recruitsBank2
JOIN
recruits
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AM Chaar – Oman 1st Islamic Finance & Banking Conference - Oman – January 2012
Islamic banking in Lebanon
Population: 4 million
Religious factions: 17
Number of muslims: 60% app.
Main Muslim sects: Sunni / Shi’a
AM Chaar – Oman 1st Islamic Finance & Banking Conference - Oman – January 2012
SSB
Isla
mic
Ba
nk
Legitimacy in localSunni market
Sunni Scholar
Legitimacy in localShi’a market
Shi’a Scholar
International
Scholar
Legitimacy in international andinterbank markets
Islamic banking in Lebanon
AM Chaar – Oman 1st Islamic Finance & Banking Conference - Oman – January 2012
THANK YOU FOR YOUR ATTENTION