An Introduction to Islamic Finance: Theory and Practice

314 AN INTRODUCTION TO ISLAMIC FINANCE Effective regulation requires readable, reliable signals of the risks that a fi nancial i ...

Regulation of Islamic Financial Institutions 315 may be looking for custodial services only, while others may need to place fund ...

316 AN INTRODUCTION TO ISLAMIC FINANCE Segment C is designed for investors who are willing to take additional risk and are prepa ...

FIGURE 14.1 Key drivers of regulatory change for fi nancial institutions Source: Portilla (2009) Financial Institutions Accounti ...

318 AN INTRODUCTION TO ISLAMIC FINANCE segregation between commercial and investment - banking activities, can- not be sustained ...

Regulation of Islamic Financial Institutions 319 Liquidity The current fi nancial crisis has been called the “perfect liquidity ...

320 AN INTRODUCTION TO ISLAMIC FINANCE and information for reporting purposes. This could be a challenge, consid- ering that the ...

Regulation of Islamic Financial Institutions 321 with a review of the risk framework expected. It is expected that policymak- er ...

322 AN INTRODUCTION TO ISLAMIC FINANCE of potential problems. Although, standards for exposure, governance, and supervision have ...

323 CHAPTER 15 Corporate Governance T he issue of corporate governance and the search for an optimal govern- ance structure has ...

324 AN INTRODUCTION TO ISLAMIC FINANCE liabilities, a legal entity, an economic or social organization, a nexus of con- tracts, ...

Corporate Governance 325 is often referred to as the “shareholder model.” It can be characterized as a model where (i) sharehold ...

326 AN INTRODUCTION TO ISLAMIC FINANCE The second issue is how to draw a line of distinction between a stake- holder and a non - ...

Corporate Governance 327 property, rights are also property (al mal) because, like physical property, which has benefi cial uses ...

328 AN INTRODUCTION TO ISLAMIC FINANCE possessions is held inviolate and no - one has a right to force appropriation (or expropr ...

Corporate Governance 329 market - based system argue in favor of individual private-property rights as fundamental rights; while ...

330 AN INTRODUCTION TO ISLAMIC FINANCE those of individuals. This implies that the fi rm is expected to preserve the property ri ...

Corporate Governance 331 expected behavior and duties with respect to the terms of the contract. This contract is to be free of ...

332 AN INTRODUCTION TO ISLAMIC FINANCE development of the fi nancial sector. If the level of trust is high, people rely more on ...

Corporate Governance 333 The importance of fulfi lling promises and obligations is emphasized time and again in the Qur’an (see, ...