Islamic Finance: Opportunities, Challenges, and Policy Options
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Disclaimer: This Staff Discussion Note represents the views of the authors and does not necessarily represent IMF views or IMF policy. The views expressed herein should be attributed to the authors and not to the IMF, its Executive Board, or its management. Staff Discussion Notes are published to elicit comments and to further debate.
Summary:
The SDN discusses the main policy issues and challenges in building an inclusive and safe Islamic finance industry, with emphasis on Islamic banking and Sukuk markets. To this end, it discuses why Islamic finance matters, taking into account its recent and prospective growth; and, its potential contributions in terms of financial inclusion, support for small- and medium-sized enterprises and investment in public infrastructure and, in principle, reduced systemic risk. It then covers a range of regulatory and other challenges, and offers policy advice, to address factors that hamper the development of the industry and, more generally, the delivery of its potential benefits. The paper covers regulatory and supervisory issues, safety nets and resolution frameworks, access to finance, Sukuk markets, and macroeconomic policies.
Series:
Staff Discussion Notes No. 2015/005
Subject:
Banking Deposit insurance Financial crises Financial regulation and supervision Financial services Islamic banking Islamic banking supervision Islamic finance
Notes:
More on Islamic Finance
Watch "Four Things You Need to Know about Islamic Finance"
English
Publication Date:
April 6, 2015
ISBN/ISSN:
9781498325035/2617-6750
Stock No:
SDNEA201505
Pages:
38
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