In the Name of Allāh,

the Entirely Merciful, the Especially Merciful

Praise is due to Allāh, Lord of the worlds, may the blessings and peace be upon our master Muḥammad, the last of prophets, on his family, and all his companions.

Resolution No. 190 (5/20)

Role of Fiqh Councils in Guiding Islamic Financial Institutions: Mechanisms and Modes

The Council of the International Islamic Fiqh Academy of the Organization of Islamic Cooperation, holding its 20th session in Oran, People’s Democratic Republic of Algeria, on 26 Shawwāl – 2 Dhū al-Qi’dah 1433h (13–18 September 2012),

Having examined the research papers submitted to the Academy concerning the Role of Fiqh Councils in Guiding Islamic Financial Institutions: Mechanisms and Modes,

Having listened to the discussions on the subject,

Reiterates that Fiqh Councils, Academies, Islamic financial institutions and banks constitute one of the most outstanding achievements of the present era, Appreciates the outstanding role of Shariah Supervisory Boards and Islamic banks and financial institutions in reviving contemporary Islamic financial sys-

tem and building confidence in it, Emphasizes:

1. Necessity of cooperation between Shariah supervisory boards of Islamic financial institutions and Fiqh academies for coordination and exchange of views.
2. Necessity of cooperation among Shariah supervisory boards in Islamic financial
3. The Academy should render practical studies to consolidate the role of Islamic financial institutions in the application of Shariah and find suit- able solutions for problems and crises encountered.
4. The Academy should prepare a comprehensive code to provide guidance for Islamic financial transactions.
5. The Academy reiterates item (1) paragraph (6) stated in its resolution 188 (3/20) that “Academy resolutions are valid from date of issuance without affecting contracts that precede them including ṣukūk issued based on Shariah-recognizable ijtihad(interpretative judgement).”

Recommends

1. Continuation of dialogue with central banks and supervisory bodies in Muslim countries to enable Islamic financial institutions to perform their role in the economic life and national development within the bounda- ries of Shariah and in the way that suits the specialties of Islamic financial
2. Communication of Academy resolutions to all Islamic banks and finan- cial institutions, educational institutions, and local and international centers of research and studies. The Academy resolutions should also be circulated among media and made accessible through social media.
3. Calling on Islamic financial institutions to adopt the resolutions of Fiqh Academies and Concils.

Indeed, Allāh is All-Knowing.