Islamic Financial Institutions and Products in the Global Financial System: Key Issues in Risk Management and Challenges Ahead

28 Pages Posted: 21 Sep 2011

See all articles by Luca Errico

Luca Errico

International Monetary Fund (IMF)

V. Sundararajan

International Monetary Fund (IMF)

Multiple version iconThere are 2 versions of this paper

Date Written: November 2002

Abstract

The provision and use of financial services and products that conform to Islamic religious principles pose special challenges for the identification, measurement, monitoring, and control of underlying risks. Effective and efficient risk management in Islamic financial institutions has assumed particular importance as they endeavor to cope with the challenges of globalization. This requires the development of not only a more suitable regulatory framework, but also new financial instruments and institutional arrangements to provide an enabling operational environment for Islamic finance. The recent establishment of the Islamic Financial Services Board, facilitated by the IMF, addresses these needs.

Keywords: Financial systems, Islamic banking, Risk management

Suggested Citation

Errico, Luca and Sundararajan, V., Islamic Financial Institutions and Products in the Global Financial System: Key Issues in Risk Management and Challenges Ahead (November 2002). IMF Working Papers, Vol. , pp. 1-27, 2002. Available at SSRN: https://ssrn.com/abstract=1930788

Luca Errico (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

V. Sundararajan

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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