Islamic Capital Markets and Products: Managing Capital and Liquidity Requirements Under Basel III

  • 7h 33m
  • Rifaat Ahmed Abdel Karim, Simon Archer
  • John Wiley & Sons (UK)
  • 2018

Ensure Basel III compliance with expert analysis specific to Islamic Finance

Islamic Capital Markets and Products provides a thorough examination of Islamic capital markets (ICM), with particular attention to the products that they offer and the legal and regulatory infrastructure within which they operate. Since Islamic banks act as asset managers, attention is paid to the regulatory challenges which they face in the light of Basel III, as regards both eligible capital and liquidity risk management. The authors of the chapters are professionals and practitioners, and write from experience. The editors also contributed to some of the chapters.

The markets and products covered include Islamic equities, Islamic investment certificates (Sukūk) which are Shari'ah compliant alternatives to conventional bonds, and Islamic Collective Investment Schemes. The coverage of legal and regulatory issues includes an examination of the implications for ICM of securities laws and regulations and of Basel III, as well as collateralisation issues. Shari'ah compliance aspects, in terms both of the selection criteria for Islamic equities and of the 'purification' of impermissible components of income, are also examined in some detail, as are the implications of Basel III for eligible capital in general and for Shari'ah compliant capital instruments in particular. A similar analysis is also made of the implications of the Basel III requirements for liquidity risk management and high quality liquid assets (HQLA), including Shari'ah compliant HQLA.

The book concludes with three case studies, two describing the ICM in Malaysia and Bahrain and a third which describes Sukūk issued as Shari'ah compliant capital instruments, followed by brief concluding remarks by the editors.

In this Book

  • Foreword
  • Overview of the Islamic Capital Market
  • Islamic Capital Markets and Islamic Equities
  • Sukuk—Unlocking the Potential for Economic Development
  • Islamic Collective Investment Schemes
  • Legal and Regulatory Considerations Pertaining to Islamic Capital Markets
  • Regulatory Aspects of the Islamic Capital Market and Basel III Requirements
  • Shari'ah Foundations of Islamic Equity Investment Criteria and Purification of Investments
  • Collateralisation in Islamic Capital Markets
  • Eligible Capital and Capital Instruments
  • Regulatory Aspects of the Islamic Capital Market and Basel III Requirements - Shari'ah-Compliant Bank Capital Instruments
  • Liquidity Risk Management and High Quality Liquid Assets
  • Malaysia's Islamic Capital Markets - A Case Study
  • Bahrain's Islamic Capital Markets - A Case Study
  • Sukuk Issued as Regulatory Capital Instruments for Basel III Compliance - A Case Study
  • Concluding Remarks