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The Quest for a Better Legal and Regulatory Framework for Islamic Banking

Published online by Cambridge University Press:  11 December 2014

Abdul Karim Aldohni
Abdul Karim Aldohni*
Affiliation:
Lecturer, Newcastle Law School
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Abstract

The legal and regulatory aspects of Islamic banking present a challenge to most financial and regulatory authorities. To many observers, legal and regulatory complexity in this respect stems from the link between the banking business and Islamic law. Compliance with some Islamic rulings forces the sector to operate an unusual business model, which is different from that of their conventional counterparts. After expounding the ideological foundation of Islamic banking and the sector's evolution, this article examines the genesis of the legal and regulatory challenge by conducting a compatibility analysis between Islam and banking. It will be argued that the conceptions of Islam and banking ought not to conflict, which means that achieving regulatory equilibrium in relation to Islamic banking is possible.

Keywords

Islambankingderegulationdeconstructionriskfinancial crisis
Type
Articles
Information
Ecclesiastical Law Journal , Volume 17 , Issue 1 , January 2015 , pp. 15 - 35
Copyright
Copyright © Ecclesiastical Law Society 2015 

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References

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