The purpose of this paper is to draw an analytical review on corporate governance from the Islamic perspective, addressing the importance of understanding governance for Islamic institutions.
The study follows a browsing method that takes into consideration the difference between normal corporate governance in conventional banking and comparing that to Islamic banking.
It was found that it is very important to take into consideration the corporate governance in Islamic banks because it might help to draw the right image about the organization. In particular, how the Shariah Supervisory board functions and how it could be linked to the Islamic banking process.
This paper is one of few papers that highlight the importance of studying corporate governance for Islamic banks. The paper is of value in describing governance in Islamic institutions and how there are many issues under the investigation process, especially issues related to the Shariah Supervisory board and its functionality.
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