Central Advisory Board and the New Shariah Governance Framework for Islamic Banks in Turkey: A Qualitative Approach

The centralized Shariah governance framework in Turkey differs from the rest of the world in terms of the composition and qualifications of advisory board members, organizational structure, working procedures, and interaction with advisory committees of participation banks. Many respondents highlighted the importance of defining the boundaries of Shariah standards that central advisory board issues. This chapter extends the literature on Islamic banking and Shariah governance mechanisms in the context of Turkey by presenting insights and policy recommendations to ensure a robust and comprehensive Shariah governance framework. The importance and need for harmonization of international Islamic financial contracts have been highlighted and emphasized in interviews as well. There are several certificate programs about standardizations in Islamic finance that some of the professionals in IFIs are required to obtain as requested by regulatory bodies. The Communique contains articles about the structure, working principles, and independence of advisory committees and Shariah compliance and Internal Shariah audit functions within banks.