Shariah Governance and Regulatory Oversight in Bank Conversion 

This paper examines Shariah governance and regulatory oversight in the conversion of conventional banks into Islamic banks. It emphasizes the need for a dedicated Islamic banking supervisory framework within central banks to ensure proper regulation, monitoring, and governance throughout the conversion process.

A strong Shariah governance framework is highlighted, including Shariah boards, audit and compliance units, risk management, and transparent reporting systems. The paper also addresses challenges such as purification of non-compliant assets, legal constraints, and handling residual conventional transactions through structured mechanisms like SPVs.

It concludes that successful bank conversion requires strict regulatory oversight, time-bound implementation, and robust Shariah governance to ensure credibility, transparency, and full compliance with Islamic principles.