Islamic Finance and Economic Development: Risk, Regulation, and Corporate Governance

Islamic Finance and Economic Development: Risk, Regulation, and Corporate Governance

by Amr Mohamed El Tiby Ahmed, Wafik Grais
Released April 2014
Publisher(s): Wiley
ISBN: 9781118847268

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Book description

A comprehensive guide to mitigating risk and fostering growth in the Islamic financial sector

Islamic finance, like conventional finance is a business of financial intermediation. Its distinctive features relate to the requirement that it abides by Shari'a rules that promote fairness of contracts and prevention of exploitation, sharing of risks and rewards, prohibition of interests, and tangible economic purpose. Islamic finance should not fund activities considered "haram" or sinful. In Islamic Finance and Economic Development: Risk, Regulation, and Corporate Governance, authors Amr Mohamed El Tiby and Wafik M. Grais expound how these distinctive features bear on the opportunities and challenges facing the Islamic finance industry's development, risk management, regulation and corporate governance.

An experienced banker with various Middle East banking institutions, notably as former Vice President at UAE Union National Bank and Mashreq bank, Dr. El Tiby offers an informed perspective on corporate finance from within the Islamic finance industry. With a long experience in international development and finance, notably as former Director at the World Bank and Founder and Chairman of a Cairo-based Financial Advisors company, Dr. Grais brings global financial experience on the topics of financial systems assessments, corporate governance, Islamic finance, and public policy.

  • Covers the history and basics of Islamic finance, and provides insight into current conditions and future landscape

  • Explores regulatory framework, including opportunities and challenges for the industry's development and mainstreaming

  • Presents an approach to developing a systemic Shari'a governance framework to govern operations in the Islamic finance industry

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    Table of contents

    1. Cover Page
    2. Title Page
    3. Copyright
    4. Dedication
    5. Contents
    6. Preface
    7. Acknowledgments
    8. Acronyms
    9. About the Author
    10. PART One: Emergence of Modern Islamic Finance
      1. CHAPTER 1: History and Core Principles of Islamic Finance
        1. HISTORY REVIEW
        2. CORE PRINCIPLES
        3. APPENDIX 1A: STYLIZED BALANCE SHEET OF AN ISLAMIC BANK
        4. APPENDIX 1B: GLOSSARY OF SELECTED ISLAMIC FINANCE TERMS
        5. APPENDIX 1C: GLOSSARY OF ARABIC FINANCE TERMS
      2. CHAPTER 2: Islamic Finance: Opportunity for Egypt's Development
        1. MARKET LANDSCAPE: SIGNIFICANT BROAD-BASED PRESENCE
        2. BEYOND BANKING: SUKUKKS, FUNDS
        3. INSTITUTIONAL INFRASTRUCTURE
        4. ISLAMIC FINANCE: OPPORTUNITY TO FINANCE EGYPT'S DEVELOPMENT
        5. REGULATORY CHALLENGES
        6. CONCLUSION
        7. APPENDIX 2A: SIZE OF ISLAMIC FINANCE IN USD BILLIONS
        8. APPENDIX 2B: LARGEST GCC ISLAMIC BANKS (USD MILLIONS)
        9. APPENDIX 2C: ISLAMIC FINANCE IN THE UNITED STATES
    11. PART Two: Managing Systemic Risks
      1. CHAPTER 3: Risks, Spillovers, and Distress
        1. FINANCIAL RISKS AND THEIR IMPACT ACROSS CONVENTIONAL AND ISLAMIC FINANCIAL INSTITUTIONS
        2. SPILLOVERS AND CONTAGION
        3. CASES OF ISLAMIC BANK DISTRESS
        4. THE CASE OF TURKEY'S SPECIAL FINANCE HOUSES
      2. CHAPTER 4: Coping with Crises: Policies, Institutions, and Markets
        1. PROVISION OF LIQUIDITY AND CRISIS CONTAINMENT
        2. RECENT EXPERIENCE IN THE GCC COUNTRIES BUILDING PUBLIC CONFIDENCE
        3. IMPACT OF MONETARY POLICY IN DUAL SYSTEMS
        4. TOOLS FOR SYSTEMIC LIQUIDITY MANAGEMENT
        5. SYSTEMIC LIQUIDITY MANAGEMENT: MALAYSIA'S EXPERIENCE
        6. THE ROAD AHEAD: DEALING WITH SYSTEMIC LIQUIDITY IN ISLAMIC FINANCIAL SERVICES
        7. DISTRESSED INSTITUTIONS RESOLUTION
        8. CONCLUSION
        9. APPENDIX 4A: TYPES OF INSTRUMENTS IN ISLAMIC INTERBANK MONEY MARKET OF MALAYSIA
    12. PART Three: Regulatory Challenges
      1. CHAPTER 5: The Dilemma of Tailor-Made versus Mainstream Regulation
        1. POLICY MAKER AND REGULATOR CHALLENGES
        2. MARKET PARTICIPANT CHALLENGES
        3. CONCLUSION
      2. CHAPTER 6: Toward an Enabling Framework
        1. RATIONALE FOR REGULATING ISLAMIC FINANCE
        2. ISLAMIC FINANCE PRINCIPLES AND CONVENTIONAL BANKING REGULATION
        3. OVERCOMING THE CONSTRAINTS: AN ORGANIZATIONAL FRAMEWORK BEYOND BANKS
        4. CONCLUSION
    13. PART Four: Corporate Governance
      1. CHAPTER 7: Financial Fiduciary Governance
        1. PROTECTING STAKEHOLDERS' FINANCIAL INTERESTS: PRACTICE AND SHORTCOMINGS
        2. EMPOWERMENT AND ENABLING REGULATIONS
        3. FLEXIBLE REGULATORY APPROACH AND PRIVATE INITIATIVES
        4. ENHANCING FINANCIAL INFORMATION FLOWS
        5. CONCLUSION
      2. CHAPTER 8: Corporate Governance and Shari'a Compliance
        1. INTRODUCTION 1
        2. INTERNAL CORPORATE GOVERNANCE ARRANGEMENTS FOR SHARI'A COMPLIANCE
        3. EXTERNAL ARRANGEMENTS FOR SHARI'A COMPLIANCE
        4. CONCLUSION
        5. APPENDIX 8A: MISSION STATEMENTS OF INSTITUTIONS OFFERING ISLAMIC FINANCIAL SERVICES AND INSTITUTIONS OFFERING CONVENTIONAL FINANCIAL SERVICES
        6. APPENDIX 8B: LEGAL BASIS AND NATURE OF REGULATIONS ON INTERNAL SHARI'A SUPERVISORY BOARDS IN SELECTED COUNTRIES
        7. APPENDIX 8C: SHARI'A GOVERNANCE DISCLOSURE INDEXES IN 13 IIFSS
        8. APPENDIX 8D: EXTERNAL SHARI'A CORPORATE GOVERNANCE INSTITUTIONS BY COUNTRY
      3. CHAPTER 9: Toward a Systemic Shari'a Governance Framework
        1. BUSINESS RATIONALE FOR AN EFFECTIVE SYSTEMIC SHARI'A GOVERNANCE FRAMEWORK
        2. DIMENSIONS OF SHARI'A GOVERNANCE: TOWARD AN ANALYTICAL FRAMEWORK
        3. PREVAILING SHARI'A GOVERNANCE FRAMEWORKS
        4. TOWARD A SYSTEMIC SHARI'A FRAMEWORK
        5. CONCLUSION
      4. APPENDIX: Islamic Finance: The International Landscape
        1. OVERVIEW OF ISLAMIC FINANCIAL ASSETS
        2. ISLAMIC BANKING ASSETS
        3. SUKUKS
        4. FUNDS
        5. TAKAFUL
      5. References
      6. Index

    Product information

    • Title: Islamic Finance and Economic Development: Risk, Regulation, and Corporate Governance
    • Author(s): Amr Mohamed El Tiby Ahmed, Wafik Grais
    • Release date: April 2014
    • Publisher(s): Wiley
    • ISBN: 9781118847268