The Current Status of Islamic Bank Regulation in the World

Abstract

The general consensus on the status of Islamic bank regulation in previous research literature has indicated that there are several improvements that need to be made in order for Islamic bank regulation to become effective. This paper examines a survey administered to Islamic finance stakeholders from 41 countries on the current status of Islamic bank regulation in their respective jurisdictions. We hypothesize that the current status of Islamic bank regulation is considered to be in its development stage and that further improvement and development is required for Islamic banking to foster growth in the Islamic banking industry. The results from this survey bring insight as to what improvements should be undertaken to further develop Islamic bank regulation in OIC member countries.

Keywords: Islamic bank regulation, growth, OIC member countries