Investment Risks Fund (IRF) in Islamic Banks: Insights from Shariah Supervisory Board Decisions, Law, and AAOIFI Standards with a Focus on Jordanian Islamic Banks

This study explores the administrative and accounting dimensions of the Investment Risks Fund (IRF) in Islamic banks, specifically within the context of Jordanian Islamic banks. It assesses the management, accountability, and investment strategies associated with these funds, raising essential questions about fund administration and the accounting principles applied. The research identifies a crucial need for these funds due to the unique nature of Islamic banks, which require oversight from central banks. The study highlights discrepancies between the accounting Islamic standard number 11 and the Jordanian Fatwa Board's advisory opinions regarding the fund's foundations and accountability. Furthermore, the research concludes that investments made using this fund are prohibited, emphasizing the necessity for consistent regulatory frameworks.