Advanced Search
MyIDEAS: Login to save this paper or follow this series

Islamic finance and conventional financial systems. Market trends, supervisory perspectives and implications for central banking activity

Contents:

Author Info

  • Giorgio Gomel

    ()
    (Banca d'Italia)

  • Angelo Cicogna

    ()
    (Banca d'Italia)

  • Domenico De Falco

    ()
    (Banca d'Italia)

  • Marco Valerio Della Penna

    ()
    (Banca d'Italia)

  • Lorenzo Di Bona De Sarzana

    ()
    (Banca d'Italia)

  • Angela Di Maria

    ()
    (Banca d'Italia)

  • Patrizia Di Natale

    ()
    (Banca d'Italia)

  • Alessandra Freni

    ()
    (Banca d'Italia)

  • Sergio Masciantonio

    ()
    (Banca d'Italia)

  • Giacomo Oddo

    ()
    (Banca d'Italia)

  • Emilio VadalÃ

    ()
    (Banca d'Italia)

Abstract

The paper analyses Islamic finance from the central bank and supervisory authorityÂ’s perspective, focusing on the European and Italian context. It depicts a rapidly expanding sector, with recent annual growth rates of between 10 and 15 percent and a geographical presence that now reaches several Western countries. Future prospects, however, could be hampered by problems concerning the standardization of products, governance structure, supervisory regulation, monetary policy instruments, and liquidity management. Islamic intermediaries are not necessarily riskier than traditional counterparts but their operational structure tends to be more complex. Key issues in supervision include the treatment of investment accounts and transparency. It has been seen that there are limits to the efficiency of the monetary policy instruments developed so far to remedy the prohibition of interest; moreover, the growth of interbank and money markets is hindered by a shortage of "Shari'ah-compliant" products. Problems arising from the participation of Islamic banks in payment systems are also discussed.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.bancaditalia.it/pubblicazioni/econo/quest_ecofin_2/QF_73/QEF_73.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Bank of Italy, Economic Research and International Relations Area in its series Questioni di Economia e Finanza (Occasional Papers) with number 73.

as in new window
Length:
Date of creation: Oct 2010
Date of revision:
Handle: RePEc:bdi:opques:qef_73_10

Contact details of provider:
Postal: Via Nazionale, 91 - 00184 Roma
Web page: http://www.bancaditalia.it
More information through EDIRC

Related research

Keywords: Islamic finance; Islamic financial institutions; supervision; monetary policy instrments; payment systems;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Jemma Dridi & Maher Hasan, 2010. "The Effects of the Global Crisison Islamic and Conventional Banks," IMF Working Papers 10/201, International Monetary Fund.
  2. International Monetary Fund, 1998. "The Design of Instruments for Government Finance in an Islamic Economy," IMF Working Papers 98/54, International Monetary Fund.
  3. Mirakhor, Abbas, 1987. "Analysis of Short-Term Asset Concentration in Islamic Banking," MPRA Paper 56029, University Library of Munich, Germany.
  4. Pauletto Livio, 2005. "Lo sviluppo della pratica finanziaria islamica nel contesto delle istituzioni occidentali," Banca Impresa Società, Società editrice il Mulino, Società editrice il Mulino, issue 1, pages 141.
  5. Andreas Jobst, 2007. "The Economics of Islamic Finance and Securitization," IMF Working Papers 07/117, International Monetary Fund.
  6. Hasan, Zubair, 1985. "Determination of Profit and Loss Sharing Ratios in Interest-Free Business Finance," MPRA Paper 3013, University Library of Munich, Germany.
  7. International Monetary Fund, 2002. "Islamic Financial Institutions and Products in the Global Financial System," IMF Working Papers 02/192, International Monetary Fund.
  8. Mohsin S. Khan, 1986. "Islamic Interest-Free Banking: A Theoretical Analysis (Le système bancaire islamique: analyse théorique d'un système qui ne fait pas appel à l'intérêt) (La prohibición islámica d," IMF Staff Papers, Palgrave Macmillan, vol. 33(1), pages 1-27, March.
  9. Weitzman, Martin L, 1985. "The Simple Macroeconomics of Profit Sharing," American Economic Review, American Economic Association, American Economic Association, vol. 75(5), pages 937-53, December.
  10. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2002. "People's Opium? Religion and Economic Attitudes," NBER Working Papers 9237, National Bureau of Economic Research, Inc.
  11. International Monetary Fund, 1998. "Monetary Operations and Government Debt Management Under Islamic Banking," IMF Working Papers 98/144, International Monetary Fund.
  12. Faezeh Raei & Selim Cakir, 2007. "Sukuk vs. Eurobonds," IMF Working Papers 07/237, International Monetary Fund.
  13. Andreas Jobst & Peter Kunzel & Paul Mills & Amadou Sy, 2008. "Islamic bond issuance: what sovereign debt managers need to know," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing, Emerald Group Publishing, vol. 1(4), pages 330-344, November.
  14. Patrick A. Imam & Kangni Kpodar, 2010. "Islamic Banking," IMF Working Papers 10/195, International Monetary Fund.
  15. Haque, Nadeem ul & Mirakhor, Abbas, 1999. "The Design of Instruments For Government Finance in An Islamic Economy," MPRA Paper 56028, University Library of Munich, Germany.
  16. Luca Errico & Mitra Farahbaksh, 1998. "Islamic Banking," IMF Working Papers 98/30, International Monetary Fund.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bdi:opques:qef_73_10. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.