Islamic Banking Regulation and Supervision: Survey Results and Challenges

IMF Working Papers, December 12, 2014

Source details

Canonical URL: Islamic Banking Regulation and Supervision: Survey Results and Challenges

Authors: In W Song, Carel Oosthuizen
Date: December 12, 2014
Core message: The growing presence of Islamic banking needs to be accompanied by the development of effective regulation and supervision.
Purpose: Examines results of the IMF survey documenting international experiences and country practices related to legal and prudential frameworks governing Islamic banking activities.
High-level conclusion: Although a number of countries have made considerable progress in creating legal, regulatory, and supervisory frameworks that accommodate Islamic banking, there are substantial differences; the paper also identifies a number of challenges faced by regulatory and supervisory agencies regarding Islamic banking.

Progress and heterogeneity:
- A number of countries have made considerable progress in creating legal, regulatory, and supervisory frameworks that accommodate Islamic banking.
- There are substantial differences across jurisdictions in how legal, regulatory, and supervisory frameworks for Islamic banking have been developed and implemented.
Focus areas examined (as described in the paper):
- Legal and prudential frameworks governing Islamic banking activities.
- International experiences and country practices related to Islamic banking regulation and supervision.

The paper identifies a number of challenges faced by regulatory and supervisory agencies regarding Islamic banking (specific challenges are described in the full paper).