The definition of Islamic banking business appears at first flush to be simple: but in reality it is nt so. There are four madzhabs in the Sunni branch of Islam (as opposed to the Shi’a branch) and opinions even among the four schools do vary on many aspects of the law and no one can say that one opinion is correct and the others are not. It is more a questions of choice. In the event of differences in opinion on the law applicable in respect of any particular matter, there is no direction in the Act as to the law of which madhab is to be applied. Seen from this point of view the wording may seem to be too general. On the other hand, however the broad definition does have some positive aspects.
The Islamic Banking Act is unique piece of legislation. It provides for the setting up and licensing of " Islamic Banks". It Must be remebered that the Islamic Banking Act and Islamic law Generally are to be applied and implemented within the existing common law system and the regine of all other existing laws. Islamic banks and banking istitutions that offers Islamic banking products and services are required to establish a Shariah Supervisory Board(SSB) to advise them and to ensure that the operations an dactivities of the bank complies with Shariah principles. On the other hand, there are also those who believe that no form of banking can ever comply with the shariah.
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