THE EXTENT OF INTEGRATION OF THE GOVERNANCE COMMITTEE AND THE FATWA AND SHARIA SUPERVISORY BOARD IN LIMITING GAINS THAT DO NOT COMPLY WITH ISLAMIC LAW IN ISLAMIC BANKS CASE STUDY OF THE ARAB ISLAMIC BANK
The study aimed to identify the extent of the importance of the Governance Committee and its independence in Islamic financial and banking institutions and the Fatwa and Sharia Supervision Board and their integration in limiting non-compliant earnings with Islamic Sharia. This study gains its importance from the importance of the topic it deals with and the important implications it carries in limiting earnings that are not compatible with Islamic law and the future of Islamic banks in maximizing halal earnings and ending unlawful earnings through the Governance Committee and the Fatwa and Sharia Supervision Board and their integration in limiting earnings that are not compatible with Sharia And because it is one of the rare studies that dealt with the relationship of the independence of the Governance Committee and the involvement of the Fatwa and Sharia Supervisory Board to limit the profit that is not compatible with Islamic Sharia in Islamic banks. In order to achieve the desired goals of our study, a methodology based on an analysis of the direct credit financing returns in the Arab Islamic Bank was relied upon, and the returns that are not compatible with Islamic law from direct credit financing, comparing that revenue that resulted from direct credit financing with the revenues that are not compatible with Islamic law that resultedFor direct creditfinancing (vertical analysis) based onthe actual figures as stated in the financial statements of the Arab Islamic Bank. The study also relied on an electronic questionnaire that was designed to suit the objectives and hypotheses of the study and was distributed to a sample of the study complex, where the study population (685 Arab Islamic Bank employees) and the total number of questionnaires received from employees reached 71 questionnaires, and the results were analyzed using the SPSS statistical analysis program. This study concluded with several results, the most important of which are: - There is a statistically significant effect of the existence of the Governance Committee on the reduction of non-sharia-compliant earnings in Islamic banks at the level of (α ≤ 0.05). - There is a statistically significant effect of the presence of the Fatwa and Sharia Supervisory Authority on the reduction of non-Sharia-compliant earnings in Islamic banks at the level of (α ≤ 0.05). - There is a statistically significant relationship between the Governance Committee and the Supervision and Fatwa Authority in Islamic banks to limit gains that are not compatible with Islamic Sharia. In order to reduce the profit incompatible with Islamic law in the financial and banking institutions, the researcher recommended the interest of Palestinian institutions and companies in applying governance on an expanded scale, as well as allocating an independent committee for governance, and not being satisfied with the presence of a governance committee integrated with other committees.And directing financial institutions to establish a Sharia Supervisory Authority that would have direct links with the Governance Committee. The researcher also recommended the support of the researchers to delve deeper into the study of governance as a legal oversight body and their impact on financial institutions and their results.It also encourages investmentin Islamic financial institutions because of their consolidation of the principles of Islamic financial law in halal earning. Universities and educational institutions design a master's program concerned with the study of Islamic governance.And providing government supportto Islamic banking and financial institutions by reducing taxes or fees, taking into account their expenses in accordance with Islamic Sharia and the controls of Sharia laws governing banking work. It also provides awareness programs for citizens about governance, its nature and benefits. And the government carrying out comprehensive programs to consolidate governance as a comprehensive way of life. In conclusion, Islamic banks and Islamic banking institutions carry out publication campaigns about their Islamic work system, the aspects of disbursing profits that are not compatible with Islamic Sharia, and the legal control methods used to limit the gain that is not compatible with Islamic Sharia.
Keywords: Governance, Islamic Banks, Fatwa and Sharia Supervisory Board, NonSharia-Compliant Earnings in Islamic Banks, Governance of Islamic Banks, Islamic Governanc