The greatest challenge resulting from different Shariah compliance practices followed by Islamic banks, Modarabas, Takaful companies, etc. is the reputational risk faced by IFIs and misperceptions in the minds of public about Shariah compliance. This issue, therefore, needs to be addressed through coordination amongst the supervisors. Another issue arises from overlapping supervisory jurisdiction.
This enables supervisors to provide feedback to bank management before these issues escalate and are cited in examination reports and as Matters Requiring Attention (MRAs), Matters Requiring Immediate Attention (MRIAs), or enforcement actions. But bank management must be receptive to these supervisory messages and should take proactive measures to address the issues identified.