TheEvolutionofRegulatoryAndSupervisoryFrameworkOfIslamicBanks-AGrowingGlobalDivergence.pdf - See discussions stats and author profiles for this

TheEvolutionofRegulatoryAndSupervisoryFrameworkOfIslamicBanks-AGrowingGlobalDivergence.pdf

This preview shows page 1 - 4 out of 33 pages.

See discussions, stats, and author profiles for this publication at: THE EVOLUTION OF REGULATORY AND SUPERVISORY FRAMEWORK OF ISLAMIC BANKS: A GROWING GLOBAL DIVERGENCE Article · January 2016 CITATIONS 0 READS 457 1 author: Asad Khan University of Haripur 14 PUBLICATIONS 12 CITATIONS SEE PROFILE All content following this page was uploaded by Asad Khan on 29 March 2017. The user has requested enhancement of the downloaded file.
Image of page 1

Subscribe to view the full document.

International Journal of Information, Business and Management, Vol. 8, No.4, 2016 ISSN 2076-9202 94 THE EVOLUTION OF REGULATORY AND SUPERVISORY FRAMEWORK OF ISLAMIC BANKS: A GROWING GLOBAL DIVERGENCE Asad Khan Department of Management Sciences, University of Haripur, Khyber Pakhtunkhwa Pakistan. [email protected] Abstract This study has explored the regulatory and supervisory system of four distinct countries which has significant contribution in development of Islamic finance in their respective geographic location. All sampled countries have dual banking system and its regulatory system for both Islamic and conventional banking have come across the different developmental stages. Beside the core purpose of this study to explore the regulatory/supervisory framework of selected countries, we have also covered those significant elements which are prerequisite and contributing towards an efficient and effective regulatory structure in a country. Historically the regulatory and supervisory system for Islamic bank evolved globally in a very divergent way. Mainly because of institutional differences, legal systems, and the influence of different Islamic laws and schools of thought. Keyword: Islamic Finance, Islamic Banking, Regulatory and Supervisory System, Banking and Finance, Shariah Compliance. 1.1 Introduction The origin of Islamic finance in mid of 1960 has attracted the attention worldwide for its social responsible principles inherent deep in Islamic Shariah. The growth achieved by shairah compliant industry is by far than one would have predicted at the time of its introduction. But the growth of Islamic banking and finance has never been followed by its regulatory and supervisory system. This is the most important factor not only to insure the ultimate compliance of this industry to Shariah principles, but also for global operations and acceptability. In past one and half decades the need for regulatory and supervisory system was felt and especially the subprime crises have further highlighted its need. But the regulatory and supervisory system for Islamic bank evolved globally in a very divergent way. The evolution of regulatory and supervisory structure of Islamic banks is under the influence of different Islamic laws and schools of thought. The variability in regulatory and supervisory framework is affecting the reliability and worldwide applicability of IBF as alternative system to conventional interest based
Image of page 2
International Journal of Information, Business and Management, Vol. 8, No.4, 2016 ISSN 2076-9202 95 system.
Image of page 3

Subscribe to view the full document.

Image of page 4
  • Fall '16
  • ISSN

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes