Islamic Banking Regulation and the Role of the Sharia Board: The UK Case Study

The research paper examines the main views of regulating and supervising of Islamic financial institutions and the role of the Sharia supervisory board in overseeing the operations of these institutions in the UK. The authors draw lessons from the existing regulatory experience of both wholesale and retail financial instruments and suggest areas of improvements in terms of the role of Sharia board. The results reveal clear discrepancies across banks in terms of areas covered by the Sharia board as well as its structure. There are also many weaknesses in the current models used by banks for their Sharia board