Jaenal ArifinRahma AuliaLabib NubahaiMuhammad Aunurrochim Mas'ad SalehMelinda Berliana2026-01-092026-01-092025-11-17Jaenal Arifin, Rahma Aulia, Labib Nubahai, Muhammad Aunurrochim Mas'ad Saleh & Melinda Berliana (2025). A COMPARATIVE STUDY ON SHARIA GOVERNANCE AND SUPERVISORY AUTHORITY IN ISLAMIC BANKING OF INDONESIA AND MALAYSIA. Malaysian Journal of Syariah and Law, 13(3), 604-614. https://doi.org/10.33102/mjsl.vol13no3.7372590-439610.33102/mjsl.vol13no3.737https://mjsl.usim.edu.my/index.php/jurnalmjsl/article/view/737/528https://oarep.usim.edu.my/handle/123456789/28456Malaysian Journal of Syariah and Law, Volume 13 Issue 3 Page (604-614)One of the critical aspects in the development of Sharia banking is Sharia compliance, which differentiates Islamic banks from conventional banks. To ensure adherence to Sharia principles, a sound supervisory mechanism is required which is undertaken by the Sharia Supervisory Board (Dewan Pengawas Syariah, DPS). The aim of this study is to analyze the legal framework governing Sharia compliance supervision in Islamic banking in Indonesia and Malaysia, focusing on the role and authority of the DPS in each jurisdiction, using a qualitative research design based on fieldwork. The results show that those countries use a two level supervisory structure in Sharia governance. A Sharia fatwa council is obligated to standardize and harmonize Sharia rulings for the macro level, and institutional Sharia councils are responsible for overseeing the implementation of these fatwas within financial institutions at the micro level. The difference on the principal between both systems lies in the legal status of the fatwa council. In Malaysia, the Sharia Advisory Council (SAC) functions as a statutory body under the central bank, whereas in Indonesia, the Sharia National Council (Dewan Syariah Nasional) operates as a non-governmental organization under the Indonesian Islamic Scholar Council (Majelis Ulama Indonesia, MUI). These organizational distinctions affect the legal standing and binding nature of the fatwas issued by each council.en-USShariah supervisory boardShariah committeeShariah complianceIslamic BankingIndonesiaMalaysiajournal-article604614133