Because it is entirely equity-based, rather than credit-based, Islamic finance is immune to the speculative bubbles and runaway volatility typical of Western finance. Especially now, in the wake of the global financial crisis, this has made them increasingly attractive to institutional investors, asset managers and hedge funds in search of more stable alternatives to conventional financial products. With interest in Islamic finance swiftly spreading beyond the Muslim world, the need among finance and investment professionals has never been greater for timely and authoritative information about the rules governing Islamic finance. This thoroughly updated and revised second edition of the premier guide to regulatory issues in Islamic finance satisfies that need.
Addresses the need for banks to develop common Islamic-based international accounting and auditing standards
Clearly explains the key differences between Shari'ah rulings, standardization of acceptable banking practices, and the development of standardized financial products
Explores the role of the Shari'ah Boards in establishing common rules regarding the permissibility of financial instruments and markets
Offers guidance for regulators seeking to adapt their regulatory frameworks to the needs of the fast-growing Islamic finance sector
Simon Archer was Professor of Financial Management at the University of Surrey, UK, where he continues to supervise PhD students. Previously, he was Midland Bank Professor of Financial Sector Accounting at the University of Wales , Bangor . After his studies in Philosophy, Politics and Economics at Oxford University , he qualified as a Chartered Accountant with Arthur Andersen in London and then moved to PriceWaterhouse in Paris , where he became Partner in charge of Management Consultancy Services in France and Scandinavia . His academic career began after working as a practitioner, mainly in management consulting. Professor Archer's main research interests are in international accounting, accounting theory and accounting for banks, including the financial reporting, capital adequacy, risk management and corporate governance of financial institutions. His recent work focuses on Islamic financial institutions. He is also co-author of the International Accounting and Financial Reporting Standards Guide as well as co-editor of the Miller European Accounting and Islamic Finance: Innovation and Growth .
Rifaat Ahmed Abdel Karim is the Secretary-General of the Islamic Financial Services Board (IFSB), a post he has held since the IFSB stated to operate in 2003. Prior to his current post, he was the Secretary-General of the Accounting and Auditing Organization for Islamic Financial Institutions. He is a member of both the Standards Advisory Council of the international Accounting Standards Board, now serving his second three-year term, and the Consultative Advisory Group of the International Auditing and Assurance Standards Board. Professor Rifaat has been Visiting Professor at the University of Surrey (UK) since 1996, and is an Honorary Professor at Monash University in Australia . He is the co-author of Islamic Finance: Growth and Innovation and Business and Accounting Ethics is Islam. He is the first recipient of the Euromoney Outstanding Contribution to the Development of Islamic Finance Award, and other distinguished awards.
About the Contributors
Daud Abdullah (David Vicary) is the President and Chief Executive Officer of INCEIF, The Global University of Islamic Finance. He has been in the finance and consulting industry for more than 38 years, with significant experience in Asia, Europe, Latin America, and the Middle East. Since 2002, he has focused exclusively on Islamic finance where he has contributed to a number of books on the subject and has co-authored a book on Islamic finance entitled Islamic Finance: Why it Makes Sense . He is also a frequent speaker and commentator on matters relating to Islamic finance. He is a Chartered Islamic Finance Professional (CIFP), a Distinguished Fellow of the Islamic Banking and Finance Institute of Malaysia (IBFIM) and a former Board member (2003–2007) of the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). Prior to INCEIF, he was the Global Islamic Finance Leader with Deloitte. He was also previously acting CEO of Asian Finance Bank, an Islamic bank based in Malaysia, and Managing Director of Hong Leong Islamic Bank.
Anand Balasubramanian is currently a Director in Ernst & Young's Financial Services Risk Management (FSRM) practice in Dubai. He has more than 12 years' experience in the area of risk and financial consulting across the Middle East, South East Asia, and the United States. He has executed several engagements in the area of risk quantification and model validation for credit risk, market risk, and operational risk.
He has prior experience with Oracle Financial Services Consulting, GE, and ICRA. Anand holds an MBA in Finance from the Indian Institute of Management, Calcutta, India and is certified FRM from Global Association of Risk Professionals (GARP).
John Board has been Dean of the Henley Business School at the University of Reading since October 2010. Before that he was Director of the ICMA Centre at the University of Reading, which he joined after being on the faculty at the London School of Economics.
His recent research has focused on the organisation and regulation of financial markets and the development of Islamic financial markets. Some of this work has been based on large scale analyses of trading data, while other parts have considered more general issues of the effects of market fragmentation as well as the various scandals and crises in financial markets. As a result of this work, he has been widely published in books and academic and professional journals, as well as radio and television. He has acted as consultant to many U.K. and overseas markets, regulatory organisations, and trade bodies. These include the House of Commons, the Financial Services Authority, the City of London Corporation, and the European Commission. He also has an interest in the development of Islamic finance, on which he has recently acted as consultant on a major project on Islamic market developments around the world.
He has successfully supervised some 30 PhD students and acted as examiner for many more. His teaching work has taken place in some 20 countries, including: the United Kingdom, China, India, France, Japan, Korea, Saudi Arabia, Egypt, Spain, Argentina, Serbia, Montenegro, Russia, Thailand, Qatar, Sharjah, Abu Dhabi, Egypt, Libya, Kenya, South Africa, and others.
Peter Casey recently retired as Senior Director, Policy and Strategy, and Head of Islamic Finance in the Dubai Financial Services Authority (DFSA).
Peter has been involved in standards development in Islamic finance through membership of the IFSB Technical Committee and several IFSB Working Groups, including those on Special Issues in Capital Adequacy, Governance of Takaful Operations, and Solvency Requirements for Takaful Operators. He participated in the joint IFSB-IAIS working group on takaful , and in the IOSCO working grou