Litigation as dispute resolution mechanism in Islamic finance: Malaysian experience
Litigation as the popular mode of dispute resolution in Islamic finance has proven inadequate in its application and interpretation of Shariah. Trails of Islamic finance cases have shown that civil court judges have no problems deciding on the civil law issues pertaining to Islamic finance, however, they are unsuited for adjudicating the Shariah issues. Section 55–58 of the Central Bank Act 2009 accords formal recognition to the Shariah Advisory Council (SAC) as their rulings is binding to the Islamic financial institutions and the courts. Post 2009 have seen that cases of law challenged the said sections as unconstitutional. The objective of this paper is to analyse the role of SAC either as expert ascertain or expert determination of the rulings on Islamic finance. In the course of discussion, s. 55–58 of Central Bank of Malaysia Act 2009 and Article 121(1) of the Constitution are analysed. Findings of the study showed that the role of SAC is merely expert ascertain of the rulings since they have no judicial power. Islamic financial law is divine in nature and different from the man made laws.
Academic and Industrial Research on Islamic Finance: Why it Matters
This paper explores the significance of the findings of academic research on Islamic finance and its suitability to serve the needs of the industry. The study recommends strategic directions for developing a plausible link and connection between industries and academic research.
Essential readings in Islamic finance
This "Essential Readings in Islamic Finance" is a collection of separately written papers that had been presented in various workshops and seminars. The authors of these papers are prominent figures from diferent backgrounds and are well known in their area of expertise. This book contains a total of twenty-two papers falling under the five themes, i.e, Shari`ah Framework of Islamic Banking and Finance; Islamic Banking Development; Takaful (Islamic Insurance); Legal, Accounting and Governance in Islamic Finance and Islamic Capital Market. This book gives an overview of the practice of Islamic finance, and highlights the latest developments in this innovative and fast-growing industry. Some of the papers also analyze the specific practicalities of contemporary financial instruments within the Shari'ah compliance framework. The book also discusses the challenges faced by Islamic finance industry and proposes suggestions for the way forward. We hope that the information provided in this book will be useful and enlightening to all scholars, researchers, students, academicians and practitioners.