Diversification of Islamic Financial Instruments
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- The policy makers should also dwell on establishing a common technological
platform to facilitate the development of Fintech companies. A common
platform whereas would facilitate the companies it would also make it easier
for policy makers to govern and regulate the industry.
- Education and awareness of the innovative and technology advanced Fintech
is a need of the hour. This responsibility, while it lies primarily on the Fintech
companies, also needs to be shouldered by the public sector and the academic
institutions.
These policy recommendations are further broken down to specific steps and who should be
responsible for it in the following table.
Table 83. Global Policy Recommendations
Recommendation Specific Step Implementing Agency
Development of
Legal
Infrastructure
Separate Islamic Banking, Islamic Capital
Markets and Takaful Law.
Neutral Tax Law.
Creation of Dispute Resolution Mechanism
and Center.
Central Banks of OIC
member countries
International Islamic
Financial Bodies
Shariah Law
prevalence
Implementation of Shariah law as
governing law for all Islamic financial
transactions.
Develop a regulatory framework for
managing difference in Shariah opinion
across different jurisdiction.
Central Banks of OIC
member countries
International Islamic
Financial Bodies
Shariah
Governance
Framework
Create a global Shariah Governance law and
standards applicable on all Islamic financial
institutions jurisdictions.
Creating an independent Shariah
supervisory board at national and global
level.
Creating separate national and global
Shariah boards for each sub sector of
Islamic finance.
Central Banks of OIC
member countries
International Islamic
Financial Bodies
International Shariah
Bodies like OIC Fiqh
Academy, ISRA etc.
Liquidity
Management for
Islamic financial
institutions.
Introduce more instruments for liquidity
management at national level.
Development of national Islamic money
markets.
Further strengthening the International
Islamic liquidity center through more
instruments and more liquidity.
Central Banks of OIC
member countries.
International Islamic
Financial Bodies
Islamic Financial
Institutions through issuing
instruments
Corporate Sector
Financial
Reporting
Standards
Develop more accounting standards for
Islamic financial products.
Develop financial and accounting standards
for non-banking Islamic financial sector.
Global acceptance and implementation of
standards across different jurisdictions.
International Islamic
Financial bodies