The Role Of The Central Bank In Supporting Islamic Banking Through The Policy Document On Shariah Governance Of Bank Negara Malaysia

Abstract

Our study aimed to understand the role of the Central Bank of Malaysia in the development of Islamic banks through the Sharia governance policy document of Bank Negara Malaysia ,and the improvements that resulted from its application on the ground. For this study, we choose Maybank islamic berhard, which is the most important and strongest Islamic bank in Malaysia as an exemple. The results illustrated that the application of Shariah governance and its structures improve the decision-making process by enhancing Sharia Committee , Improve the internal control by strengthening it with dedicated bodies , improve management of non-compliance risk ,enhance disclosure , transparency and clarify responsibilities and accountability.