Islamic Finance, Consumer Protection, and Financial Stability

40 Pages Posted: 8 Jun 2015

See all articles by Inutu Lukonga

Inutu Lukonga

International Monetary Fund (IMF)

Date Written: May 2015

Abstract

Consumer protection and financial literacy are essential pillars of a well functioning and stable financial system. As the global financial crisis demonstrated, inadequate attention to consumer protection and financial literacy can lead to financial instability. Though Shari’ah principles provide a strong foundation for consumer protection, the principles alone cannot provide adequate protection because not all providers are guided by ethical precepts and the practices have deviated from the principles. To safeguard the stability of the Islamic finance industry, consumer protection frameworks that cater to the specifics of Islamic financial products should be an integral part of regulatory frameworks.

Keywords: Islamic banking, Banks, Financial services industry, Financial regulation and supervision, Financial stability, Islamic Finance, Consumer Protection, Financial Stability., islamic financial products, sukuk, market, regulatory frameworks, monetary fund, banking sector, investment

JEL Classification: G20, G21, G24, G32, G38, K22

Suggested Citation

Lukonga, Inutu, Islamic Finance, Consumer Protection, and Financial Stability (May 2015). IMF Working Paper No. 15/107, Available at SSRN: https://ssrn.com/abstract=2615299

Inutu Lukonga (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
185
Abstract Views
787
Rank
347,012
PlumX Metrics