At NBF Islamic, we bring a range of Shari'a compliant solutions to our wholesale banking, retail banking, treasury and investment banking customers.
We recognise the Shari'a as the foundation of our Islamic finance business practices. For our customers who trust us, it’s vital that we observe and comply with its rules and principles. To make sure that all our products and services are duly accredited and in line with Shari'a values, we follow a robust set of processes and procedures.
We follow international Shari'a governance best practices and we have our own Shari'a Governance Framework, supported by independent experts. This framework means that before we offer any Islamic banking products or services to our customers, they are rigorously evaluated and deemed officially Shari'a compliant. Our internal business activities and operations are also assessed to the same degree.
Our Shari'a Governance Framework (SGF)
- Our independent Shari'a Supervisory Board (SSB)oversees NBF Islamic activities and operations, making sure they are Shari'a compliant. This impartial SSB is made up of distinguished Shari'a governance experts, who deliberate issues related to our Islamic banking activities and operations. With no personal interests in NBF Islamic, they’re qualified to make sound Shari'a decisions.
- Our Shari'a Governance Committee (SGC) makes sure we have sufficient resources and capable employees to support our implementation of Shari'a governance, ultimately making sure that we execute all our operations in accordance with Shari'a principles.
- Together with our internal stakeholders and the external advisers on our SSB, we at NBF Islamic are able to bring our customers Islamic banking products and solutions that comply with Shari'a law.
Shari'a Governance Committee
Our highly empowered Shari'a Governance Committee (SGC) oversees our Shari'a governance processes at NBF Islamic. Providing essential cross-functional support for all our Islamic banking activities, our SGC drives the implementation of our comprehensive Shari'a Governance Framework (SGF). The Committee also coordinates with various NBF departments, committees and taskforces on Shari'a issues and provides support during Shari'a Audits.
The SGC makes sure NBF Islamic executes our Shari'a Governance Framework (SGF). They make sure we correctly implement the resolutions (religious decrees/edicts) issued by our SSB, managing this through the right reporting lines and complying with the SGF at all times.
The SGC has a thorough understanding of our Shari'a non-compliance risks. They know the areas in which we could potentially fail to meet our obligation to satisfy the Shari'a principles (non-compliance) and they are fully aware of the potential implications for us in such cases.
Alongside a sound Shari'a governance structure, the SGC looks closely at any of NBF’s overall policies and strategies that could enhance our Shari'a compliance – such as effective communication or sufficient and impartial disclosures. They make sure we administer these aspects of our business well, from a Shari'a standpoint, in our interactions with NBF Islamic.
The Committee also makes sure that NBF Islamic’s policies and procedures are clear on matters related to end-to-end Shari'a governance processes and that our Shari'a Supervisory Board’s resolutions are always accessible to the relevant people.
Our SGC makes sure that we execute our operations in accordance with Shari'a compliant policies and procedures at NBF Islamic. The Committee constantly reviews and updates our Shari'a compliance policies and procedures in line with current market practices and developments.