The value proposition of Islamic Financial intermediation: some current legal and regulatory challenges

Oseni, Umar Aimhanosi and Kadouf, Hunud Abia and Ansari, Abdul Haseeb and Olayemi, Abdul Azeez Maruf (2012) The value proposition of Islamic Financial intermediation: some current legal and regulatory challenges. Australian Journal of Basic and Applied Sciences, 6 (11). pp. 239-245. ISSN 1991-8178

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Abstract

Abstract: With the tremendous growth experienced in the Islamic finance industry within the past decade, there is an increasing call for self-evaluation in order to reemphasize the need to realize original value proposition of Islamic financial intermediation in Islamic commercial law. The Islamic finance industry has been criticized by some skeptics that it has skid off the track of its original trajectory envisioned by its pioneers. This paper therefore examines some current legal and regulatory challenges in identifying the original value proposition of Islamic financial intermediation in the modern Islamic finance industry. As an exploratory study, this paper identifies a number of legal and regulatory reforms necessary to reposition the global Islamic finance industry in order to make it more conventionally viable without compromising the fundamentals of Sharī'ah. The paper concludes with the need to rekindle the original value proposition of Islamic finance, particularly in countries where Islamic finance is just gaining grounds. It is always good to get things right at the initial stage to avoid some sort of legal and regulatory transplants that are not adaptable to such jurisdictions. Key words: Islamic finance, law, value proposition, Islamic financial intermediation.

Item Type:	Article (Journal)
Additional Information:	1526/27721
Uncontrolled Keywords:	Islamic finance, law, value proposition, Islamic financial intermediation
Subjects:	K Law > K Law (General)
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Ahmad Ibrahim Kulliyyah of Laws > Department of Civil Law
Depositing User:	Professor Abdul Haseeb Ansari
Date Deposited:	20 Dec 2012 15:22
Last Modified:	16 Apr 2014 12:10
URI:	http://irep.iium.edu.my/id/eprint/27721

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