NEW GUIDLINES FOR SYARIAH SUPERVISORY BOARD
IN SYARIAH BANKING
On August 24, 2006 Bank Indonesia has enacted a new circular letter for syariah banking. This Circular Letter No. 8/19/DPbS concerning Syariah Supervising Guidelines and Report Procedure for Syariah Supervisory Board (“Guidelines”) (Pedoman Pengawasan Syariah dan Tata Cara Pelaporan Hasil Pengawasan Bagi Dewan Pengawas Syariah).
The purposes of this circular letter are:
- As a basic guideline for Syariah Supervisory Board in Syariah Banks and Syariah Rural Banks, and for details supervising guidelines, it can be seen in the circular letter’s attachment.
- This guidelines is should be considered as a minimum standard in supervising Syariah Banks and Rural Syariah Banks.
- The Syariah Supervising Report (“Report”), together with supervisory working paper (kertas kerja pengawasan), is submitted by Syariah Supervisory Board to the Boad of Directors, Board Commisioners, National Syariah Board, and Bank Indonesia, using form in the Chapter IV Guidelines.
- The report should be at least contain : (a) The supervising report concerning bank’s operational activities, based on regulations (fatwa) from Indonesian Council of Ulama and National Syariah Board; (b) Syariah Opinion, concerning of syariah bank operational guidelines and products; (c) A research report of new syariah bank products and services,
and also submitting an approval from Indonesian Council of Ulama and National
Syariah Board; (d) Syariah Opinion concerning syariah bank general operational activities in the bank publication report.
- With the enactment of this circular letter, the attachment No. 9 from Bank Indonesia Circular Letter No. No.6/31/DPbS dated 28 Juli 2004 corcerning Syariah Rural Bank and attachment No. 9 from Bank Indonesia Cricular Letter No. No.7/5/DPbS dated 8 Februari 2005 concerning Syariah Bank are declared no longer valid.