Purpose: The purpose of the study is to critically evaluate the industry development of Nigerian Islamic banking system in terms of its establishment and operation using Malaysian experience as the base. The study also provides useful suggested recommendations as a way forward for the development and for the smooth running of the system. Methodology: Qualitative research method was employed by the study which consists of documentary review and face to face in-depth interview. with regulatory officers, practitioners, academicians who are directly involved in the operations of Islamic banking system in two countries Malaysia and Nigeria. And secondary source inform of documentary review is also employed. Findings: From the findings of this study, in terms of basic minimum things, most, but not all of the situations regarding shariah governance, in Nigeria are in line with footsteps of Malaysia. Thus, lots need to be done. The regulators should bear it in mind that in terms of shariah governance framework what they are have done are just the basic minimum required for the start, they should be prepared and ready for the comprehensive effective and efficient frameworks for the industry. Practical Implication/ Value of the Study: the study will have policy implication to the CBN and other stakeholders in the area of Islamic banking system. Findings of this study will be a source of reference for Nigeria and other countries in formulating the similar concept of Islamic banking system. The findings of the study will also help the management of the Islamic bank operators in the industry on how they should direct their management policies towards strategic tools to use in order to be able to reap industry’s potentials. The study will also add to the pool of available literature available on the subject matter.

In order to reduce risks to the soundness of the banking system and enhance banks’ role as active players in the development of the economy, effective prudential supervision is necessary and desirable in an Islamic banking framework as in conventional banking. Therefore, the objective of this paper is to examine the regulatory and prudential supervision framework of Islamic banking system in Malaysia in order to draw lessons for Nigerian Islamic banking system, taking into consideration the Nigerian environment. The paper is both descriptive and exploratory which employs qualitative research methodology with presentation based on documents review. The paper however suggests that comprehensive study of Malaysian Islamic banking system practices is required by Nigerian Islamic banking regulatory authority. The study will have policy implication to the Central Bank of Nigeria (CBN), and will also be a source of reference for academicians, students, practitioners and other countries in formulating the similar concept of Islamic banking system.

Purpose: The purpose of the study is to critically evaluate the regulatory and supervision of Nigerian Islamic banking system in terms of its establishment and operation. The study also proposes a model (primary requirements) as a way forward for the development and for the smooth running of the system. Methodology: The study employs qualitative approach making use of both the in-depth field interview with regulatory officers, practitioners, academicians who are directly involved in the operations of Islamic banking system in two countries Malaysia and Nigeria. And secondary source inform of documentary review is also employed. Findings: The study reveals that development of Islamic banking system in Nigeria is facing the following constraints: 1. Lack of government support, 2. Misconception about the concept of Islamic banking system, 3. Religion and ethnic sentiments. Although, a lot has been done by the CBN as the regulator from the findings of the study, but the desired results are yet to be seen. Finally, the study proposed a model of Islamic banking system in terms of requirements by a nation for the establishment and smooth running of the system. Practical Implication/ Value of the Study: The study will have policy implication to the CBN and other stakeholders in the area of Islamic banking system. Findings of this study will be a source of reference for Nigeria and other countries in formulating the similar concept of Islamic banking system because it provides gap which needs to be filled in order to make the system a success. The research will also have policy implications to international organizations such as IDB, World Bank, UN and IMF that have been championing the course of financial inclusion.

Banks in distress present a threat to orderliness and stability in financial markets due to the risk of "contagion" whereby if one financial institution fails; the sustainability of others is also threatened. In order to reduce bank failure to minimum bearable level the attention of the regulatory authority to effective regulation and supervision is being called for. Therefore, this paper tries to examine the theoretical framework and the essence of proper and effective regulation and supervision of Islamic financial system. The paper is both descriptive and explorative in nature employs qualitative research methodology. The study will have policy implication to Central Banks around the world in formulating and implementing effective legal, regulation and supervision for Islamic financial system. This will not only help in preventing distress or failure in banking industry but also serve as a developmental vehicle to push Islamic financial system to a higher level. It will also serve as a source of reference for the academicians, students and practitioners.