The Core Principles For Islamic Finance Regulations And Assessment Methodology
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Author | : International Monetary Fund |
Publisher | : International Monetary Fund |
Total Pages | : 40 |
Release | : 2018-05-24 |
Genre | : Business & Economics |
ISBN | : 1498308880 |
This paper provides a proposal to incorporate the Core Principles for Islamic Finance Regulation (Banking Sector) (CPIFR) issued by the Islamic Financial Services Board (IFSB), as part of the standards used in assessing the banking regulatory and supervisory regimes of relevant member jurisdictions under the Financial Sector Assessment Program (FSAP) and the Reports on Observance of Standards and Codes (ROSCs). The CPIFR largely reflects the order of the Basel Core Principles on Effective Banking Supervision (BCP), with five additional principles that are specific to Islamic banking operations. Thus, for countries that have systemically significant Islamic banking sector, the assessment of the banking regulation and supervision regime of the jurisdiction would be against the CPIFR (for fully Islamic banking systems) or BCP and the five additional core principles under the CPIFR (for dual banking systems). The Fund staff is seeking the endorsement of the Executive Board on this proposal.
Author | : |
Publisher | : |
Total Pages | : |
Release | : 2018 |
Genre | : |
ISBN | : 9781498308878 |
This paper provides a proposal to incorporate the Core Principles for Islamic FinanceRegulation (Banking Sector) (CPIFR) issued by the Islamic Financial Services Board(IFSB),1 as part of the standards used in assessing the banking regulatory andsupervisory regimes of relevant member jurisdictions under the Financial SectorAssessment Program (FSAP) and the Reports on Observance of Standards and Codes(ROSCs). The CPIFR largely reflects the order of the Basel Core Principles on EffectiveBanking Supervision (BCP), with five additional principles that are specific to Islamicbanking operations. Thus, for countries that have systemically significant Islamicbanking sector, the assessment of the banking regulation and supervision regime of thejurisdiction would be against the CPIFR (for fully Islamic banking systems) or BCP andthe five additional core principles under the CPIFR (for dual banking systems). The Fundstaff is seeking the endorsement of the Executive Board on this proposal.--Executive summary.
Author | : Mr.In Song |
Publisher | : International Monetary Fund |
Total Pages | : 42 |
Release | : 2014-12-12 |
Genre | : Business & Economics |
ISBN | : 1498319270 |
The growing presence of Islamic banking needs to be accompanied by the development of effective regulation and supervision. This paper examines the results of the survey conducted by the International Monetary Fund to document international experiences and country practices related to legal and prudential frameworks governing Islamic banking activities. Although a number of countries have made considerable progress in creating legal, regulatory, and supervisory frameworks that accommodate Islamic banking, there are substantial differences. This paper also identifies a number of challenges faced by regulatory and supervisory agencies regarding Islamic banking.
Author | : Mr.Mumtaz Hussain |
Publisher | : International Monetary Fund |
Total Pages | : 35 |
Release | : 2015-06-02 |
Genre | : Business & Economics |
ISBN | : 1513565621 |
Islamic finance has started to grow in international finance across the globe, with some concentration in few countries. Nearly 20 percent annual growth of Islamic finance in recent years seems to point to its resilience and broad appeal, partly owing to principles that govern Islamic financial activities, including equity, participation, and ownership. In theory, Islamic finance is resilient to shocks because of its emphasis on risk sharing, limits on excessive risk taking, and strong link to real activities. Empirical evidence on the stability of Islamic banks, however, is so far mixed. While these banks face similar risks as conventional banks do, they are also exposed to idiosyncratic risks, necessitating a tailoring of current risk management practices. The macroeconomic policy implications of the rapid expansion of Islamic finance are far reaching and need careful considerations.
Author | : |
Publisher | : Lulu.com |
Total Pages | : 294 |
Release | : 2004 |
Genre | : Bank capital |
ISBN | : 9291316695 |
Author | : Hennie van Greuning |
Publisher | : World Bank Publications |
Total Pages | : 336 |
Release | : 2008 |
Genre | : Business & Economics |
ISBN | : 0821371428 |
Islamic finance is emerging as a rapidly growing part of the financial sector in the Islamic world and is not restricted to Islamic countries, but is spreading wherever there is a sizable Muslim community. According to some estimates, more than 250 financial institutions in over 45 countries practice some form of Islamic finance, and the industry has been growing at a rate of more than 15 percent annually for the past several years. The market's current annual turnover is estimated to be $70 billion, compared with a mere $5 billion in 1985, and is projected to hit the $100 billion mark by the turn of the century. Since the emergence of Islamic banks in the early 1970s, considerable research has been conducted, mainly focusing on the viability, design and operations of a deposit-accepting financial institution, which operates primarily on the basis of profit and loss partnerships rather than interest. This publication provides a comprehensive overview of topics related to the assessment, analysis, and management of various types of risks in the field of Islamic banking. It is an attempt to provide a high-level framework (aimed at non-specialist executives) attuned to the current realities of changing economies and Islamic financial markets. This approach emphasizes the accountability of key players in the corporate governance process in relation to the management of different dimensions of Islamic financial risk.
Author | : Aledjandro Lopez Mejia |
Publisher | : International Monetary Fund |
Total Pages | : 33 |
Release | : 2014-12-12 |
Genre | : Business & Economics |
ISBN | : 1484303865 |
This paper aims at developing a better understanding of Islamic banking (IB) and providing policy recommendations to enhance the supervision of Islamic banks (IBs). It points out and discusses similarities and differences of IBs with conventional banks (CBs) and reviews whether the IBs are more stable than CBs. Given the risks faced by IBs, the paper concludes that they need a legal, corporate and regulatory framework as much as CB does. The paper also argues that it is important to ensure operational independence of the supervisory agency, which has to be supported by adequate resources, a sound legal framework, a well designed governance structure, and robust accountability practices.
Author | : Mohammad Bitar |
Publisher | : International Monetary Fund |
Total Pages | : 40 |
Release | : 2017-07-18 |
Genre | : Business & Economics |
ISBN | : 1484309219 |
The paper provides robust evidence that compliance with Basel Core Principles (BCPs) has a strong positive effect on the Z-score of conventional banks, albeit less pronounced on the Zscore of Islamic banks. Using a sample of banks operating in 19 developing countries, the results appear to be driven by capital ratios, a component of Z-score for the two types of banks. Even though smaller on Islamic banks, individual chapters of BCPs also suggest a positive effect on the stability of conventional banks. The findings support the effective role of BCP standards in improving bank stability, whose important implications led to the Islamic Financial Services Board (IFSB) publication of new recommendations in 2015 to bring BCP standards in line with the Core Principles for Islamic Finance Regulation (CPIFRs) standards. Our findings suggest that because Islamic banks are benchmarked closely to BCPs, the implementation of CPFIRs should also positively affect their stability.
Author | : Mr.Luca Errico |
Publisher | : International Monetary Fund |
Total Pages | : 33 |
Release | : 1998-03-01 |
Genre | : Business & Economics |
ISBN | : 1451980418 |
This paper analyzes the implications of Islamic precepts on banks’ structure and activities, focusing on banking supervision issues. It points out and discusses these issues in the context of a paradigm version of Islamic banking, as well as in frameworks that fall between the paradigm version and conventional banking. The case of Islamic banks operating in a conventional system is also examined.
Author | : World Bank |
Publisher | : World Bank Publications |
Total Pages | : 494 |
Release | : 2005-09-29 |
Genre | : Business & Economics |
ISBN | : 9780821364321 |
In the wake of the financial crises of the late 1990s, there was a surge of interest in the systematic assessment of financial sectors, with a view to identifying vulnerabilities and evaluating the sector's developmental needs. Consequently, there has been an increased demand from financial sector authorities in many countries for information on key issues and sound practices in the assessment of financial systems and the appropriate design of policy responses. In response, Financial Sector Assessmsnet presents a general analytical framework and broad guidance on approaches, methodologies and key techniques for assessing the stability and development needs of financial systems. It synthesizes current global sound practices in financial sector assessment.