Sunday, 30 January 2011
University College of Bahrain (UCB) participated in The Annual Conference on Islamic Banking and Finance held by AAIOFI at Bahrain Conference Centre, Crowne Plaze Hotel. As part of the learning process and the expanding of students' knowledge, faculty members Mr. Imam Buchari and Mr. Sutan Emir Hidayat selected some of the academically advanced students to participate in the prestigious conference.
The topics covered in the conference were:
Session I: Governance for Sharia Supervisory Boards
This session discussed a possible initiative to regulate and limit the number of Islamic Financial Institutions that Sharia's Scholars can serve concurrently. This issue has been raised because there is an allegation towards some sharia' scholars who have been monopolistically serving many Islamic Financial Institutions. Invariably, due to this monopolistic governance, It would make many Islamic Financial Institutions unable to preserve the core value of Islamic commercial principles.The session also discussed the issue of shareholdings that sharia scholars can have in the Islamic financial institutions they serve.
Session II: Dealing with Default in Islamic Finance
The issues that have been raised in the case of dealing with default in Islamic Finance are of rights and obligations of Islamic Financial Institutions and of its customers, respectively, and how shariah compliant default can be achieved. The students benefited by understanding the idea of deciding default in Islamic Finance transactions.
Session III: Challenges in Capital Markets
The session discussed some issues relating to standardization of sukuk structures & documentations, and the initiative of forward movement beyond sukuk. The students were very interested and were obviously attentive to such matters especially since the topic discussed is related to one that University College of Bahrain has been offering, i.e; Islamic Financial Systems. They learnt how to achieve proper balance between the theoretical framework and ideal practices.
Session IV: Incompatibility of Conventional Accounting standards with Islamic Finance
The session discussed applying some conventional accounting standards into Islamic Financial Institutions and that AAOIFI Accounting standards should fully converge in Global conventional accounting standards. These issues gave food for thought to students who have just studied the subject of "Accounting for Islamic Banks".
Sessions V: Inconsistencies of fatwa issued by Sharia Supervisory Boards
This discussion was related to some criticism of fatwas that have been issued by monopolistic Shariah Supervisory boards. The students really listened to the speakers as they realized that it seems hard to balance between rigidly maintaining Islamic core values and commercialvalues as well.
Session VI: Application of Wa'ad (promise) and Bay al Arbun (earnest money deposit) contracts in
Islamic Financial transactions
The students were satisfied to have a clear view about the application of Wa'ad (promise) and Bay al Arbun (earnest money deposit) in the contract of options and future.