My life
Conventional?
The Relationship between Islamic
Finance and the Financial Mainstream
Edited by Charles Beard
1
The Arab Financial Forum (AFF) brings together senior figures from the public and private sector concerned with the development of Arab capital markets. Such development is essential to the growth of Arab economies. The AFF commissions relevant research, holds workshops and briefings, and produces a fortnightly newsletter. The AFF is a not-for-profit organization, supported by several leading figures from the Arab world and those in the West concerned with the future development of the region. Its studies and recommendations are fed into the OECD-MENA working group on financial services reform.
Key issues are the development of Arab capital markets, the integration of Islamic finance within conventional structures, regulation and relations with non-Arab counterparts dealing with capital markets.
The secretariat for the AFF is provided by MEC. Fuller details can be found on the
AFF website www.arabfinancialforum.org or by contacting queries@meconsult.co.uk
2
Table of Contents
Introduction: Progress and Challenges in Mainstreaming Islamic Finance………….4
Charles Beard
Preliminary Thoughts on “Mainstreaming” Islamic Finance………………………...7
Hiba Allam
The Total Return Swap and the “Shari'ah Conversion Technology” Stratagem……11
Shaikh Yusuf Talal DeLorenzo
Acceptance and Compatibility of Shari’a Banking in the Financial Mainstream......27
Nicholas Van Zandt
A Gram(een) of Hope: Micro-credit in Bangladesh………………………………...35
Kevin Newton
Ijara-based Sukuk: Sound Structure Prevails over Limitations……………………..45
Samer Budeir
Risk Checklist: Figuring Out What Can Go Wrong………………………………...55
Warren Edwardes
Risk Management Issues in Islamic Banks………………………………………….62
Khalid Hamad
US Regulations of Islamic Banking: Prospects for Success………………………...82
Abdi Shayesteh
3
Introduction: Progress and Challenges in
The Relationship between Islamic
Finance and the Financial Mainstream
Edited by Charles Beard
1
The Arab Financial Forum (AFF) brings together senior figures from the public and private sector concerned with the development of Arab capital markets. Such development is essential to the growth of Arab economies. The AFF commissions relevant research, holds workshops and briefings, and produces a fortnightly newsletter. The AFF is a not-for-profit organization, supported by several leading figures from the Arab world and those in the West concerned with the future development of the region. Its studies and recommendations are fed into the OECD-MENA working group on financial services reform.
Key issues are the development of Arab capital markets, the integration of Islamic finance within conventional structures, regulation and relations with non-Arab counterparts dealing with capital markets.
The secretariat for the AFF is provided by MEC. Fuller details can be found on the
AFF website www.arabfinancialforum.org or by contacting queries@meconsult.co.uk
2
Table of Contents
Introduction: Progress and Challenges in Mainstreaming Islamic Finance………….4
Charles Beard
Preliminary Thoughts on “Mainstreaming” Islamic Finance………………………...7
Hiba Allam
The Total Return Swap and the “Shari'ah Conversion Technology” Stratagem……11
Shaikh Yusuf Talal DeLorenzo
Acceptance and Compatibility of Shari’a Banking in the Financial Mainstream......27
Nicholas Van Zandt
A Gram(een) of Hope: Micro-credit in Bangladesh………………………………...35
Kevin Newton
Ijara-based Sukuk: Sound Structure Prevails over Limitations……………………..45
Samer Budeir
Risk Checklist: Figuring Out What Can Go Wrong………………………………...55
Warren Edwardes
Risk Management Issues in Islamic Banks………………………………………….62
Khalid Hamad
US Regulations of Islamic Banking: Prospects for Success………………………...82
Abdi Shayesteh
3
Introduction: Progress and Challenges in