A Regulatory Framework for Islamic Banks
This paper seeks to provide a framework for addressing regulatory issues which impact operations and institutional development of Islamic banks. Arguing against universal regulation or creating separate specialized regulations, the approach in this paper uses the regulatory dialectic principle...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Kolej Universiti Islam Malaysia
2012
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| Subjects: | |
| Online Access: | http://ddms.usim.edu.my/handle/123456789/5300 |
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| Institution: | Universiti Sains Islam Malaysia |
| Language: | English |
| Summary: | This paper seeks to provide a framework for addressing regulatory
issues which impact operations and institutional development of
Islamic banks. Arguing against universal regulation or creating
separate specialized regulations, the approach in this paper uses the
regulatory dialectic principle to highlight the need to regulate Islamic
banks and focuses on the area of regulations that need to be
covered and regulated. The area of regulations can be classified into
seven broad categories, i.e regulations on bank activities, bank entry,
capital adequacy, deposit insurance, monitoring, government
ownership and supervision. The area of regulations providing stability
in a financial system context cannot develop without a conducive legal and regulatory environment. Finally, we will introduce the CAMEL rating to measure the soundness of Islamic banks. |
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