Islamic finance assets in several countries comprise significant part of the financial system. In these countries there are certain issues that are unique to the Islamic finance and are overlooked by stakeholders, most importantly regulators. This paper investigates that Islamic finance product structuring, through a chain effect, may influence the financial stability of the Islamic financial system in a country. This is demonstrated through the securitization chain of an Islamic Mortgage Backed Security (MBS) to show that Islamic product structuring decisions at the retail level have a chain impact on the investor base for an Islamic MBS deriving from the mortgage assets ...