Proposing an organizational framework for the Shariʿah Secretariat of Islamic banks in Bangladesh

Purpose – Sharıʿah Secretariat plays a significant role in assisting Sharıʿah Supervisory Boards (SSBs) in their role in achieving Sharıʿah compliance in Islamic banks (IBs). The key objective of the study is to develop a organizational framework of the Sharıʿah Secretariat for the IBs in Bangladesh.

Design/methodology/approach – The study applied qualitative case study research. The data have been collected from 17 respondents through semi-structured interviews from IBs and professional experts in Bangladesh.

Findings – This study proposes a full-time Sharıʿah Secretariat and several departments for further enhancement of the Sharıʿah functions in IBs in Bangladesh. The framework proposed in this study covers the formation, functions, composition, qualification, reporting line, independence, remuneration and terms of appointment of the Sharıʿah Secretariat to set a uniform benchmark for all IBs in Bangladesh. It is anticipated that the outcomes of this research will assist to further strengthen the Sharıʿah governance of IBs in Bangladesh.

Research limitations/implications – This research contributed to the national and global regulatory  authorities and IBs by proposing a Sharıʿah Secretariat framework for the smooth functioning of the IBs in Bangladesh. The framework proposed in this study covers the formation, functions, composition, qualification, reporting line, independence, remuneration and terms of appointment of Sharıʿah Secretariat.

Originality/value – This study proposed a framework which is considered the first organizational framework so far for the Sharıʿah Secretariat of IBs in Bangladesh. IBs can apply this proposed framework to form their Sharıʿah Secretariat structure.