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International Journal of Academic Research in Economics and Management Sciences

Open Access Journal

ISSN: 2226-3624

Sharia Supervision and its Role in Developing Libyan Islamic Banking

Lutfi Alhadi Mohammed Abu Zayd, Seraj Moh Ekhlat

http://dx.doi.org/10.6007/IJAREMS/v12-i4/18707

Open access

This paper addressed the issue of Sharia supervision in Islamic banks, as it indicated that the Islamic society adopted a banking system borrowed from the West, which made banks usurious places. The paper presented the role of Sharia Supervision as a control body within the bank to ensure compliance with the provisions of Islamic Sharia in all financial transactions. The most important questions addressed in the paper included the concept of Sharia supervision and its role in Islamic banks, the mechanisms for exercising Sharia supervision in Islamic banks in Libya, the role and importance of Islamic banks. The paper adopted a descriptive, inductive approach to extrapolate studies related to the Sharia supervision of Islamic banks and derive a correct understanding of reality. It concluded with a set of results, the most important of which is that Islamic banks play an essential role in promoting economic and social development in Libya by providing Sharia-compliant financial services. Sharia supervision must remain sustainable and effective to ensure the sustainability of this positive impact and the development of Islamic banking. The paper recommended several points, the most important of which are: The role of Islamic banks in achieving economic and social development in Libya requires focusing on strengthening and deepening Sharia supervision, and developing strategies to confront economic challenges and crises. These measures will contribute to achieving development in Libyan society. In general, the paper highlights the importance of Sharia supervision in achieving compliance with the provisions of Islamic Sharia in Islamic banks and developing this sector in Libya.

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(Zayd & Ekhlat, 2023)
Zayd, L. A. M. A., & Ekhlat, S. M. (2023). Sharia Supervision and its Role in Developing Libyan Islamic Banking. International Journal of Academic Research in Economics and Management and Sciences, 12(4), 315–328.