BIS Review 6/2007  1  faith has to be managed right from the inception of an IFI and the Shariah Advisor/Board are assigned to perform their duties. Commitment of dedicated, qualified directors who understand and can assess Shariah Compliance would facilitate effective oversight and protect the industry from overall reputation risks.
Qualifications/experience of Shariah advisors is the key to judge and support the development of Shariah compliant financial services. In absence of this, there is a risk that for short term profits/gains the shareholders/BOD may become willing to compromise on the Shariah principles. The presence of Shariah literate directors would discourage precedence of profit motive over Shariah Compliance.