Shariah Governance and Public Accountability: Strengthening Institutional Integrity in Contemporary Islamic Financial Institutions
Keywords:
Shariah Governance, Public Accountability, slamic Financial Institutions, Institutional Integrity, Maqasid al-ShariahAbstract
Shariah governance and public accountability represent two fundamental pillars that shape the integrity and sustainability of contemporary Islamic financial institutions (IFIs). As Islamic finance expands globally, concerns regarding transparency, ethical compliance, and institutional trustworthiness have intensified. This study aims to analyze the role of Shariah governance in reinforcing public accountability and strengthening institutional integrity within modern IFIs. Using a qualitative literature-based approach, this paper synthesizes recent academic findings, regulatory frameworks, and governance models published over the last five years. The analysis reveals that effective Shariah governance, supported by competent Shariah Supervisory Boards (SSBs), robust internal control systems, and transparent reporting mechanisms, significantly enhances accountability, stakeholder confidence, and ethical compliance. Furthermore, the integration of accountability principles aligned with Maqasid al-Shariah promotes sustainable governance practices that go beyond financial performance, emphasizing social justice and public welfare. This study contributes theoretically by proposing an integrative governance-accountability framework and practically by offering strategic recommendations for policymakers and practitioners in strengthening institutional resilience and public trust.
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