Sharia and Corporate Governance of Islamic Banks

Seen as an essential element of economic development, corporate governance has been at the center debate since 1990s. Its crucial interest for good functioning financial markets is strongly mentioned. Over last two decades, motivations opting have diverse and varied: Cadbury report, OECD reports, reflections Basel Committee, adoption Sarbanes-Oxley Act (or SOX) in 2002 United States, work on "corporate social responsibility". Indeed, one main elements to be established institution because it supposed guarantee promote principles equity, transparency responsibility Islamic banking sector. Unlike conventional approach, vision sector both: performance sharia compliance. In fact, institutions are faced with several dilemmas, namely Investment account holders (IAH) subject same risks shareholders, but do not rights shareholders. Furthermore, analysis measures proposed by IFSB remedy this situation concludes that degree required protect interests IAHs yet achieved, detriment all recommendations practices put place. The purpose paper highlight, hand, specificity from perspective system which bank run Shariah directors board. This what researchers called "dual governance".