Diversification of Islamic Financial Insturments
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Recommendation Specific Step Implementing Agency
Consumer
Protection Law
Create Islamic Finance consumer
protection law.
Set up an entity nationally and globally to
handle consumer protection cases of
Islamic financial institutions.
Central Banks of OIC
Member Countries
FINTECH
Create laws for regulating the fintech
companies in Islamic finance.
Develop standards for fintech in Islamic
finance
Train human capital for working in Islamic
financial fintech companies.
Developing entrepreneurial incentives for
creating and developing fintech for Islamic
finance.
Central Banks of OIC
member countries.
International Islamic
Financial Bodies
Islamic Financial
Institutions through issuing
instruments
Corporate Sector
Islamic finance educational
institutions.
Knowledge
Transfer
Best Practice developments by established
Islamic finance destinations.
Global debates on challenges faced in
development of Islamic banking and
policies.
Critical in harmonized and rapid global
growth of Islamic banking and finance
Central Banks of OIC
member countries.
Global multilateral agencies,
like World Bank, IMF,
Islamic Development Bank
Established global Islamic
banking groups.
Source: Created by Author
4.6 RECOMMENDATIONS FOR NASCENT ISLAMIC FINANCE
DESTINATIONS
The challenges and policies that the governments have to undertake towards developing
Islamic finance vary with the level of development of Islamic finance. The previous section
highlighted the policy recommendation for the global Islamic finance industry, which apply to
all countries where Islamic financial sector is developing or thriving.
The following discussion highlights some key policy recommendation for countries, which are
still young and small in terms of Islamic financial sector and aim to develop it further.
 Developing Islamic finance requires a separate legal framework for Islamic financial
institutions. This will facilitate the regulatory bodies develop some instruments to
deepen the Islamic financial sub-sector. It will make it easy for the Islamic financial
institutions to document legal requirements during product development
 The regulatory frameworks for guiding the conduct of financial services should be
amended to ensure that there are no overlaps of conventional and Islamic banking. A
method of achieving that is through prohibiting Islamic banking windows. All OIC
member countries who have a relatively larger Islamic financial sector have banned
Islamic banking windows in order to avoid mixing of assets and liabilities.