Regulation and Supervision of Islamic Banks

Author/Editor:

Aledjandro Lopez Mejia ; Suliman Aljabrin ; Rachid Awad ; Mohamed Norat ; In W Song

Publication Date:

December 12, 2014

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 14/219

Subject:

English

Publication Date:

December 12, 2014

ISBN/ISSN:

9781498361590/1018-5941

Stock No:

WPIEA2014219

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

33

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