Chapter

Regulatory Issues and Challenges: Global Norms and Religious Constraints

Ibrahim Warde

in Islamic Finance in the Global Economy

Published by Edinburgh University Press

Published in print February 2000 | ISBN: 9780748612161
Published online March 2012 | e-ISBN: 9780748653072 | DOI: http://dx.doi.org/10.3366/edinburgh/9780748612161.003.0011
Regulatory Issues and Challenges: Global Norms and Religious Constraints

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This chapter discusses regulatory issues and challenges posed by the global norms and religious constraints on Islamic banking. In the early years of the modern Islamic banking, ambitious regulatory schemes were devised. There was talk of an Islamic Central bank, of a global zakat fund and of other collaborative schemes. Most of these ideas were never put to practice, as they were overtaken by events. When the era of deregulation emerged, national regulators lost their margin of manoeuvre to the norms and practices of the financial regulation that was established internationally. While Islamic banks have thrived in the global economy, their compliance with many of the new norms has sometimes been problematic. Increasingly, however, in recent years, and in particular since the creation in 2002 of the IFSB, Islamic regulators have been coordinating their policies with other international financial regulators.

Keywords: regulatory issues; global norms; religious constraints; deregulation; international financial regulators; national regulators

Chapter.  10730 words. 

Subjects: Society and Culture

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