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Sharia Supervisory Board. Ikhwanul Muslim 20090610032. Definition. Sharia Supervisory Board (SSB) is a supervisory body in sharia financial institution related to the decision of the national sharia board.

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sharia supervisory board

Sharia Supervisory Board

Ikhwanul Muslim

20090610032

definition
Definition
  • Sharia Supervisory Board (SSB) is a supervisory body in sharia financial institution related to the decision of the national sharia board.
  • Sharia supervisory board established based on the Decision Letter of the National Sharia Board No. 3 2000.
the function
The Function
  • Make the agreement related to the sharia financial product that made by the sharia financial institutions.
  • Annual report
  • Progress report – Indonesian bank
  • Make the recommendation related to the sharia financial product that proposed by sharia financial institutions.
  • Give sharia financial counseling to the society
  • Give the input to the sharia financial institutions
relation between ssb dps and nsb dsn
Relation between SSB (DPS) and NSB (DSN)
  • Sharia supervisory board existed in the sharia financial institution.
  • When sharia financial institution will make a new product (finance), it must consult to the sharia supervisory board.
  • Sharia supervisory board report to the national sharia board regarding the new product.
  • National sharia product make decision regarding the product, whether it is in line with the sharia principle or no.
continue
Continue
  • When the product is agreed by national sharia board. Sharia supervisory board can allow the sharia financial institution to apply their new product in their sharia financial institution.
membership of sharia supervisory board
Membership of Sharia Supervisory Board
  • In Sharia Bank, Sharia supervisory board consists of three persons. One of them is the head of the sharia supervisory board.
  • The duration of work is 4 years
conclusion
Conclusion
  • Sharia supervisiory board is basically the extension of national sharia bard in realizing the religious advices instructed by national sharia board.
  • Sharia supervisiory board isnt involved directly in the managerial practice of shria financial institutions because it has been responsibility, directly, under directorates authority of sharia financial institutions, but DPS has the right to give input toward the managers of the institutions.
references
References
  • Nurul Musjtari, Dewi, 2010, Hukum Perbankan Syariah dan Takaful (Dalam Teori dan Praktek), Lab Hukum Universitas Muhammadiyah Yogyakarta, Yogyakarta.
  • http://www.muamalatbank.com/home/about/organization