Principles of Corporate Governance in Islamic Banking Compared to OECD Principles for Improving Credit System of Banks

The establishment of a monetry and financial security network in the banking system is one of the important issues in banking literature. In order to achieve these goals, the issue of the establishment of corporate governance in active organizations in the banking system, along with other influential factors, is very important. Due to the fact that corporate governance principles combine justice, transparency and accountability in organizations, its effective implementation in the banking system has led to increased capital efficiency, reduced investment risks, increased financial stability, lower capital cost rates and, consequently, encouraging economic activists to invest more. The ethical components of every economic activity in Islam are the creation of justice, integrity and equality of rights, in order to ensure that all its stakeholders are respected. Therefore, the task of Islamic banking is to implement the laws of the Shari'a with the principles of modern banking, in a way that preserves the personal goals of the stakeholders without neglecting social welfare. This paper discusses the nature, uses, and comparison of Islamic principles of corporate governance with its customary principles, with particular attention to the OECD, and, while explaining the primary priorities of corporate governance that are unique in Islamic Financial Institutions, the effects of Islamic corporate governance On the credit system of Islamic Financial Institutions. It can be concluded that although the Islamic economy is largely similar to conventional economics, there is always a certain form of difference between the two principles in their implementation. Therefore, the Islamic corporate governance perspective has broader horizons with respect to its obligations and responsibilities.