{
  "title": "Islamic Banking: Issues in Prudential Regulations and Supervision",
  "publication": "IMF Working Papers, March 1, 1998",
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  "summary": "This paper analyzes the implications of Islamic precepts on banks’ structure and activities, focusing on banking supervision issues.",
  "sections": [
    {
      "heading": "Overview and Scope",
      "content": "- Paper analyzes the implications of Islamic precepts on banks’ structure and activities, with a primary focus on banking supervision issues.\n- Discusses issues in:\n  - A paradigm version of Islamic banking.\n  - Frameworks falling between the paradigm version and conventional banking.\n  - The case of Islamic banks operating in a conventional system."
    },
    {
      "heading": "Main Findings and Analytical Themes",
      "content": "- Structural and operational implications of Islamic precepts for banks’ balance sheets and liabilities.\n- Prudential supervision challenges arising from Islamic contracts and financial instruments.\n- Differences in regulatory treatment needed between:\n  - Paradigm Islamic banking models.\n  - Hybrid frameworks blending Islamic and conventional features.\n  - Islamic banks functioning within a conventional banking system.\n- Emphasis on how Islamic banking affects:\n  - Bank liability composition (including demand deposit treatment).\n  - Equity capital and investment policy.\n  - The intermediation role of Islamic banks.\n  - Measurement and supervision of rate of return in Islamic contracts."
    },
    {
      "heading": "Policy and Supervisory Issues Highlighted",
      "content": "- Need to adapt banking supervision frameworks to account for Islamic banking specificities.\n- Consideration of capital adequacy requirements and their applicability to Islamic bank structures.\n- Prudential regulation adjustments where conventional regulatory assumptions do not align with Islamic financial principles.\n- Supervision must address operational and transparency issues unique to Islamic banking practice."
    },
    {
      "heading": "Subjects and Keywords",
      "content": "- Subjects: Bank supervision; Banking; Capital adequacy requirements; Environment; Financial regulation and supervision; Financial services; Islamic banking; Islamic banking supervision\n- Keywords: balance sheet; bank liability; Bank supervision; banking practice; Banking Supervision; Capital adequacy requirements; demand deposit; equity capital; Global; intermediation role; investment policy; Islamic bank; Islamic Banking; Islamic banking supervision; Prudential Regulations; rate of return; WP\n\nSource: IMF Working Papers — \"Islamic Banking: Issues in Prudential Regulations and Supervision\" by Luca Errico and Mitra Farahbaksh, March 1, 1998.\n\n---\n\n Content in this bundle\n\n- Islamic Banking: Issues in Prudential Regulations and Supervision - WP/98/30\n  - Islamic Banking: Issues in Prudential Regulations and Supervision - WP/98/30 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Islamic Banking: Issues in Prudential Regulations and Supervision - WP/98/30 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/islamic-banking-issues-in-prudential-regulations-and-supervision-2524"
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    "Authors: Luca Errico, Mitra Farahbaksh",
    "Published: March 1, 1998",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451980417.001",
    "Paper analyzes the implications of Islamic precepts on banks’ structure and activities, with a primary focus on banking supervision issues.",
    "Discusses issues in:",
    "Structural and operational implications of Islamic precepts for banks’ balance sheets and liabilities.",
    "Prudential supervision challenges arising from Islamic contracts and financial instruments.",
    "Differences in regulatory treatment needed between:",
    "Emphasis on how Islamic banking affects:",
    "Need to adapt banking supervision frameworks to account for Islamic banking specificities.",
    "Consideration of capital adequacy requirements and their applicability to Islamic bank structures.",
    "Prudential regulation adjustments where conventional regulatory assumptions do not align with Islamic financial principles.",
    "Supervision must address operational and transparency issues unique to Islamic banking practice.",
    "Subjects: Bank supervision; Banking; Capital adequacy requirements; Environment; Financial regulation and supervision; Financial services; Islamic banking; Islamic banking supervision",
    "Keywords: balance sheet; bank liability; Bank supervision; banking practice; Banking Supervision; Capital adequacy requirements; demand deposit; equity capital; Global; intermediation role; investment policy; Islamic bank; Islamic Banking; Islamic banking supervision; Prudential Regulations; rate of return; WP",
    "**Islamic Banking: Issues in Prudential Regulations and Supervision - WP/98/30**"
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