Regulating the conversion of conventional banks to Islamic: the 4 Quadrants Conversion (4-QC) framework

Suleiman, Sani Dalhatu and Sharofiddin, Ashurov and Mustapha, Abubakar (2023) Regulating the conversion of conventional banks to Islamic: the 4 Quadrants Conversion (4-QC) framework. Journal of Central Banking Law and Institutions, 2 (2). pp. 327-346. ISSN 2827-7775 E-ISSN 2809-9885

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Abstract

This research paper proposes a framework for converting conventional banks to full-fledged Islamic banks as a catalyst for propelling the Islamic finance industry to Islamic Finance 2.0 by addressing the paucity of a regulatory framework for Central Banks to regulate this conversion. To address this, the paper proposes the “4Quadrants Conversion (4-QC) Framework” as a model framework for Central Banks to regulate the conversion process, consisting of twenty four components classified into four quadrants. The proposed conversion involves leaving Shari’ah non-compliant activities and adopting Shari’ah permissible alternatives. This paper adopts a qualitative research method based on content analysis. The research findings suggest that the proposed regulatory framework can facilitate successful conversion, resulting in a dual result of creating new Shari’ah-compliant entities and eliminating non-compliant entities. The proposed regulatory framework can also guide banks to plan, implement, and self-assess their progress to ensure a timely and less cumbersome conversion.

Item Type:	Article (Journal)
Uncontrolled Keywords:	conversion, transformation, regulatory framework, Islamic bank, conventional bank
Subjects:	H Social Sciences > HG Finance > HG1501 Banking H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr Sharofiddin Ashurov
Date Deposited:	08 Aug 2023 17:11
Last Modified:	08 Aug 2023 17:11
URI:	http://irep.iium.edu.my/id/eprint/105918

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