Formation of the Shariah Supervisory Committee (SSC)

Article 104 of the Articles of Association of the Bank provides, on the licensing of the Social Islami Bank PLC, an Islamic Shari'ah Supervisory Committee shall be constituted with members from Fakihs/Islamic Scholars, Economists, Banker and Lawyers to advise the company on the operation of its business in order to ensure that they do not involve in any element which is not approved by Shari'ah. The Shari'ah Supervisory Committee consists of 07 (Seven) members nominated by the BOD of the Bank. Shariah Supervisory Committee of the Bank plays a vital role in framing and exerting policy for strict adherence of Shari'ah principles in all activities of the Bank since its very inception. The Shari'ah Supervisory Committee, which enjoys a high status in the structure of the Bank. Members of the Shariah Supervisory Committee meet frequently and deliberately on different issues confronting the Bank on Shariah matters. They give opinion and supervise to implement and comply Shari'ah principles in all activities of the Bank.

Functions of the Committee

• The function of the Shari'ah Supervisory Committee is to offer views on matters related to the Bank from time to time. The Shari'ah Supervisory Committee may require any papers from the Bank and examine the same in order to ensure that all activities of the Bank are being carried out in accordance with the Islamic principles.
• To devote time and effort to devise more Shariah compliant transactional procedures, templates and banking products that enable the Bank to adapt to market trends while maintaining a highly competitive edge in deposit procedures, investments and banking services
• The SSC assists the BOD by way of giving advice on matters relating to Shari'ah. The BOD must respect their recommendations on Shari'ah principles as it is committed to run the Bank strictly in accordance with Shari'ah.
• Analysing contracts and agreements concerning the Bank's transactions, as submitted by the Chairman of the Board of Directors or any department/branch within the bank or requested by the Board itself so that Shariah compliance can be evaluated and maintained.
• Ensuring Shariah compliance in the implementation of all banking transactions and correcting any breaches.
• The SSC have a Secretariat with a Member-Secretary, who oversee whether the functions of the Bank are being carried out in accordance with the principles of Islamic Shari'ah. The Member-Secretary shall remain responsible to the Shari'ah Supervisory Committee.
• The status of the SSC shall be advisory to the BOD and Supervisory in respect of operational activities of the Bank.
• The Committee submits a complete annual report for the Board of Director, summarizing all the issues referred to the Board, as well as its opinion on the Bank's transactional procedures.
• The Shariah Supervisory Committee certifies the Annual report of the bank.

Activities of the Department i.e. Shariah Supervisory Committee Secretariat

• The Secretariat consists of Muraquibs, who are entrusted with sufficient knowledge about all schools of Islamic thoughts. They supervise & monitor day to day operation of the banks as well as provide necessary guidelines in order to ensure full compliance of Shari'ah Principles.
• To conduct Shariah Audit and Inspection of all Branches of the Bank to ensure Compliance of the Shari'ah principles in each and every case of the Bank and will be responsible to the SSC.
• To motivate the executives and officers of the Bank to the Islamic Shariah principles, to make them practising Shariah rules particularly in all types of Investments.
• The Secretariat also assists the Member-Secretary for conducting the Shariah Supervisory Committee meetings, co-operate to arrange client get together in the branches in presence of Shariah Supervisory Committee Members and to convince the people for Banking in accordance to Islamic Shariah.