Publication:
Towards an economic theory of Islamic finance regulation
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Date
2014
SDG:
Abstract
Islamic finance has several comparative advantages over conventional finance. Since they are related to efficiency, stability and other macroeconomic benefits, they cannot be easily internalized by Islamic bankers. Islamic bankers have no incentive to stick to the Islamic finance paradigm and instead tend to mimic conventional finance. Regulation is therefore required to modify their behavior in order to allow the Islamic finance industry to enjoy its advantages. This paper attempts modify the economic theory of bank regulations towards that aim.
Keywords
Islamic banking , Islamic finance , Islamic monetary and financial economics , Regulations banking , Finance
Citation
Mahmoud Al-Jarhi, Mabid Ali Mohamed. (2014). Towards an economic theory of Islamic finance regulation. Journal of Islamic Banking and Finance, 2 (1), pp. 345-366.
Publisher
American Research Institute for Policy Development