Supervisory Authority at the Central Bank of Oman

17/03/2015 05:17 AST

First meeting of High Sharia Supervisory Authority was held on Monday 16th March 2015 at the premises of Central Bank of Oman. All members, Shaikh Dr. Kahlan Bin Nabhan Al Kharoosi, Shaikh Dr. Abdullatif bin Mahmood Al Mahmood, Dr. Said bouheraoua, Mr. Ahmed Suhaimi bin Yahya and Dr. Yaqoob bin Mohammed Al Waily attended the first meeting.

His Excellency, HamoodSangour Al Zadjali, the Executive President welcomed the members and wished success in performing their due role as member of the Authority. HE stated that CBO is looking forward to benefit from their knowledge and experience in Fiqh, Islamic banking and finance in order to address the common interests.

Formation of High Sharia Supervisory Authority is a major step towards accomplishment of CBO efforts done since roll out of Islamic banking in the Sultanate. The Royal Decree No. 69/2012 opened doors for Islamic banking in the Sultanate through effecting amendments in Banking Law No. 114/2000 to undertake permitted banking activities by full-fledged Islamic banks or stand-alone Islamic Banking windows of conventional banks.

The members elected Shaikh Dr. Kahlan Bin Nabhan Al Kharoosi as Chairman of the Authority and Shaikh Dr. Abdullatif bin Mahmood Al Mahmood as its Deputy Chairman. The Authority noted the proposal to appoint coordinator/secretary and specifying his responsibilities. A presentation was given to the Authority on legal and regulatory framework of Islamic banking entities and their performance since the inception of business in January 2013 up to December 2014. It is worth mentioning that in December 2012, CBO issued a comprehensive Islamic Banking Regulatory Framework (IBRF), covering regulatory and supervisory aspects of Islamic banking, to ensure smooth functioning, soundness and stability of the Islamic banking industry in the Sultanate. IBRF provides detailed instructions and guidelines on the issues relating to licensing, supervision of Islamic banking entities, based on best regional and international experiences and practices.

Earlier the Board of Governors had approved the appointment of the above mentioned honorable scholars as members of the Authority. The Central Bank had issued Regulation No. BM/54/12/2013 on the formation of High Sharia

Supervisory Authority and its structure. In the light of this Regulation the functions of the Authority are to give opinion and advice to the CBO on Sharia matters related to Islamic banking business, to give binding rulings in the matters, submitted to it through CBO, on Fiqh disputes between Sharia supervisory boards of different Islamic banking entities, to give opinion on Sharia compliance of the transactions between Central Bank and Islamic banking entities which include opening of accounts, providing finance, sale and purchase and issuance of Islamic financial instruments etc.

Times of Oman