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Erudite AfricaCenter of Excellence
← Interest Free Banking Financing: Advanced

Sharia'h governance, exceptions and accountability

Module 07 / 7 · 45 min

Apply SAC rulings in every financing decision, learn from Sharia'h audit findings, purify non-compliant income, and approve and report exceptions without ever excepting Sharia'h.

In this module you will learn to

  • Apply the Sharia'h Advisory Committee's rulings in financing decisions and explain Sharia'h review and audit
  • Recognize the most common Sharia'h audit findings in IFB financing and purify non-compliant income
  • Define an exception, identify who can approve which level, and report exceptions
  • Explain each financing performer's accountability and how the procedure is revised

Built on

  • Erudite Africa training outline: Interest Free Banking Financing, Level 3 Advanced (October 2026)
  • A typical Ethiopian bank's IFB financing business procedure (May 2025), unnamed: approval system, grading, follow-up, problem finance, write-off, portfolio management and exceptions
  • NBE Bank Corporate Governance Directive No. SBB/91/2024 (influential shareholder at 2%) and Risk Based Capital Adequacy Requirement for Banks Directive No. SBB/95/2025, issued under Banking Business Proclamation No. 1360/2025
  • NBE directives on interest free banking, large exposures, related parties, and asset classification and provisioning, in their current versions
  • AAOIFI Sharia'h Standards, including Sharia'h Standard No. 8 (Murabaha); the host bank's Sharia'h Advisory Committee rulings take precedence
  • IFRS 9 Financial Instruments: expected credit loss staging

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.