Legal, Regulatory and Governance Issues in Islamic Finance

AUTHOR APPROVED Edinburgh Guides to Islamic Finance Series Editor: Rodney Wilson Edinburgh Guides to Islamic Finance is a series of short guides to key areas in Islamic finance, offering an independent academic perspective and a critical treatment. This book presents a detailed examination of the use of common and civil law to license and govern Islamic financial institutions. Making international comparisons, it discusses specific laws from Iran, where all banking is Shari'ah compliant, to Malaysia and the Gulf, where Islamic financial institutions compete with conventional banks. As most Islamic banks operate under national banking laws, consideration is given as to how - and indeed whether - these need to be amended. The author also shows how the assets and liabilities of Islamic banks differ from their conventional counterparts and what the implications are for risk management. This is crucial for effective regulation, along with transparent governance systems. Governance issues discussed include the inclusion of Shari'ah boards and mudaraba depositors as key stakeholders. The remit of the guide includes regulation pertaining to takaful operators, fund managers and Shari'ah compliant securities issuance, including sukuk. Key Features Detailed examination of Islamic banking laws Evaluation of regulatory systems governing Islamic finance Outlines key governance issues Clear, detailed explanations of Islamic finance contracts and their implications Global coverage including case studies from Bahrain, Britain, Dubai, Indonesia, Iran, Kuwait, Malaysia, Qatar, Turkey and the United Arab Emirates Rodney Wilson was founder of the Islamic Finance Programme at Durham University. He is now an Emeritus Professor in Durham and a Visiting Professor at the Qatar Faculty of Islamic Studies. He is author of Economic Development of the Middle East (1995; second edition 2013) and co-editor (with Habib Ahmed and Mehmet Asutay) of Islamic Banking and Financial Crisis (2012). ISBN 978 0 7486 4504 6 Edinburgh University Press 22 George Square Edinburgh EH8 9LF ww