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07.02.2017

GCC VAT a test for Islamic Finance- Fitch


30.01.2017

Goldmoney adds Shariah-compliant methods to boost investment from Islamic markets


31.03.2016

Path Solutions joins CIBAFI, the world renown General Council for Islamic Banks and Financial Institutions


28.03.2016

"Kazakhstan Islamic Finance 2016: a new frontier for Islamic finance" country report


19.02.2016

Azerbaijan looks to new Islamic bank as sector rules progress


15.01.2016

Linar Yakupov received an award for his contribution to the development of Islamic finance industry in Russia


14.12.2015

The 2nd International winter school of Islamic law and economics has started in Kazan


09.12.2015

Russian financial experts are exploring options to launch Islamic Banking


IBFD Fund

Recent Comments

22.06.2016

Islamic banking will be most relevant to SME sector: Zafar Sareshwala

Interview with director and head of Islamic Corporation for Development's (ICD) India operations.

25.11.2015

Islamic Develop Bank calls for new Islamic microfinance structures

As the Shariah-compliant Islamic finance sector booms in the GCC region, the President of the Islamic Development Bank (IDB) Group, Dr. Ahmad Mohamed Ali, asked experts in the field to develop new Islamic microfinance structures.

14.09.2015

Dubai Silicon Oasis Authority and Thomson Reuters Reveal Key Findings of Digital Islamic Economy Report 2015

Dubai Silicon Oasis Authority (DSOA) and Thomson Reuters, with support from the Dubai Islamic Economy Development Centre (DIEDC) released the 'Digital Islamic Economy Report' for 2015, in collaboration with DinarStandard.

Islamic banks can help financial stability

22.11.2010

Islamic finance products can enhance the financial system's stability but shortcomings in their standardisation and liquidity management must be tackled, said European Central Bank policymaker Yves Mersch.
Islamic banks can help financial stability
Islamic finance products can enhance the financial system's stability but shortcomings in their standardisation and liquidity management must be tackled, said European Central Bank policymaker Yves Mersch.
A lack of liquidity tools is seen as one of the key challenges to the emerging Islamic finance industry, which is worth $1 trillion, with sharia banks handicapped partly due to the limited range of products they can invest in.

Mersch said Islamic banks' lack of exposure to 'opaque and complex assets' and their absence of excessive leverage should protect them from financial crises. Reliance on deposits rather than wholesale funding added another layer of stability.

'On the other hand, the asset-based and risk-sharing nature of Islamic finance can make the business model more vulnerable to second round effects of a financial crisis,' added Mersch, pointing to greater exposure to downturns in the 'real economy'.

'Moreover, the lack of product standardisation and the missing harmonisation of Islamic standards in general pose risks to the management of liquidity,' Mersch, an ECB Governing Council member, added in the text of a speech to be given at the Euro Finance Week conference in Frankfurt.

Islamic banking is overhauling rules that govern the conduct of its influential sharia advisers, with competition for investor dollars and a growing market putting pressure on the once-arcane industry to adopt clearer, more uniform guidelines.

Key to these challenges is the small number of scholars advising a growing number of banks on increasingly complex financing structures, raising issues such as transparency of rulings, independence of advisers and how to groom new scholars.

But varying sharia standards, different regulatory approaches and vast disparities in development across markets stand in the way of reforms to streamline and boost supervision, which are critical to growth.

Source: Trade Arabia

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Malaysia's fast-growing Islamic finance sector benefits not only the Muslim world but also non-Muslim countries, said former Prime Minister Tun Abdullah Ahmad Badawi.

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