CBK working on ‘draft law’ to appoint independent Sharia Supervisory Board
Legitimate bodies contradict this view
KUWAIT CITY: The Central Bank of Kuwait is currently working on a draft law which will allow it to appoint an independent Shari’a Supervisory Board, pointing out that if the law is passed, the Central Bank’s supervisory decisions on the Islamic banking sector will be subject to this committee to ensure compliance, reports Al-Rai daily. The sources pointed out that the Central Bank has gone a long way in preparing its vision for the draft law, without setting a specific date for submitting the draft law to the Council of Ministers in preparation for submission it to the National Assembly, but pointed to progress in this regard.
“If the law is amended, all transactions related to Shari’a will be subject to the fatwa ruling because what is issued by the authority is considered to be legitimate. The rules of fatwa and mufti must be followed, and the authority will be concerned with ensuring the proper implementation of the standards and the rules issued by them and the extent to which they are bound by those provisions in all its activities,” say sources.
The sources pointed out that the establishment of the Central Bank is a legitimate supervisory body that helps in achieving greater transparency and regulatory credibility, especially since this role is to be assigned to a body that includes a number of jurists specialized in financial transactions which are independent and impartial and whose views are binding and enforceable.
The Central Bank’s approach comes at a time when the debate is still open on the legitimacy of recent amendments of the rules and foundations for granting loans and personal financing for consumer purposes, which obliges donors, including Islamic finance, to pay interest in the event of early repayment.
In recent times, some of the known names, most notably the Minister of Justice and the Minister of Awqaf and Islamic Affairs, former Dr Nayef Al- Ajmi and Sheikh Ajil Al-Nashmi, a number of legitimate observations that assert the sanctity of this procedure, while Ajmi held the legitimacy these instructions.
On the other hand, there are legitimate bodies that contradict this view, foremost among which is the Shariah Board of Boubyan Bank, which stated the difference of jurisprudence and the diversity of jurisprudential opinions achieved for the legitimate interest.
In the meantime, it was learned that the Chairman of the Sharia Board of Boubyan Sheikh Abdul Aziz Al-Qassar met with Sheikh Al-Nashmi, and discussed the jurisprudential views on the issue from religious point of view, which concerns the person who is indebted, who seeks to complete a new transaction after the drop of his old one, where they reviewed 3 doctrinal views in answering the extent to which it is permissible to drop the banks that operate according to Islamic law for their returns on the remaining installments of their financing in case the customer decides to pay early.