28 Pages Posted: 6 Feb 2006
Date Written: November 2002
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: Islamic banking, risk management, Islamic Financial Services Board
JEL Classification: E58, G18, P51
Suggested Citation: Suggested Citation
Sundararajan, V. and Errico, Luca, Islamic Financial Institutions and Products in the Global Financial System: Key Issues in Risk Management and Challenges Ahead (November 2002). IMF Working Paper, Vol. , pp. 1-28, 2002. Available at SSRN: https://ssrn.com/abstract=880303
By Juan Solé