Does the Shariah Supervisory Board in Islamic banks matter? A systematic literature review

Purpose The primary purpose of this study is to identify the functional role of the Shariah Supervisory Board (SSB) in Islamic banks. In addition, it seeks to investigate the underlying causes of its limited effectiveness and to propose practical solutions aimed at strengthening the governance role of the SSB. Design/methodology/approach This study conducted a review of the literature using PRISMA (The Preferred Reporting Items for Systematic Reviews and Meta-Analyses) 2020, encompassing 458 relevant articles from the Scopus and Web of Science databases. Findings The review reveals predominantly positive effects of SSB characteristics on Islamic banks’ performance, compliance and disclosure, particularly for expertise-related attributes. However, evidence on independence and monitoring-related characteristics remains mixed, with divergences systematically linked to regulatory, measurement and methodological differences across studies. Research limitations/implications This review has several limitations. The 2014–2025 time frame captures recent empirical developments following key regulatory reforms but excludes earlier foundational studies, which are discussed in the theoretical section rather than the empirical synthesis. In addition, the review is limited to English-language, peer-reviewed journal articles indexed in Scopus and Web of Science, raising the possibility of publication bias. To mitigate this, both significant and non-significant findings are synthesised, and sensitivity checks confirm stable patterns across databases. Practical implications First, for government/policymakers, this study is expected to contribute to standardized minimum qualifications for SSB members, periodic evaluations and training grounded in both Islamic jurisprudence and corporate governance. Second, for the academic audience, we have identified underexplored research areas, particularly the SSB’s role in promoting financial inclusion, gender equity in governance and the integration of Maqāṣid al-Shariah into performance measurement frameworks. Social implications The review underscores the societal relevance of effective Shariah governance by indicating its potential to enhance ethical conduct, transparency, stakeholder trust and social value creation. While macro-level socio-economic effects remain understudied, the findings suggest that stronger SSB structures may contribute to broader public confidence in Islamic finance. Originality/value This study systematically synthesizes the growing body of empirical research on SSBs in Islamic banks using PRISMA 2020, explicitly distinguishing between positive, insignificant and negative empirical effects across governance outcomes, while situating these findings within the broader context of earlier foundational debates.