The Significance of the Islamic Law (Shari'a) Supervision of the Islamic Banks

Abstract

The financial transactions are among the major dealings introduced by the Islamic law or (shari’a), presented with strong rules and laws and deeply rooted principles to establish justice, bringing forth prosperity and righteousness for all human being. Therefore, Islamic shari’a compliant financing banks have been established in Muslim countries, committing themselves to avoid usury and other similar prohibited financing services. There are nearly 390 Islamic banks in 48 countries throughout the world. This study examines the significance of the concept of the Islamic law, or Shania’s supervision of the Islamic banking. It shows the areas of the Islamic sharia’s supervision of financing services. The study also addresses the extent of Jordan Islamic bank (JIB) compliance with the Islamic law principles pertaining to finance services extended to customers, individuals or organizations in all its branches in the Hashemite kingdom of Jordan.