Islamic Capital Markets and Products
Managing Capital and Liquidity Requirements Under Basel III
Simon Archer, Rifaat Ahmed Abdel Karim
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Islamic Capital Markets and Products
Managing Capital and Liquidity Requirements Under Basel III
Simon Archer, Rifaat Ahmed Abdel Karim
About This Book
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.
Frequently asked questions
Information
CHAPTER 1
Overview of the Islamic Capital Market
HISTORY OF THE ICM
Region | Banking Assets | Sukuk Outstanding | Islamic Funds' Assets | Takaful Contributions |
Asia | 209.3 | 174.7 | 23.2 | 5.2 |
Gulf Cooperation Council countries | 598.8 | 103.7 | 31.2 | 10.4 |
The Middle East and North Africa (MENA) region (exc. GCC) | 607.5 | 9.4 | 0.3 | 7.1 |
Sub-Saharan Africa | 24.0 | 0.7 | 1.4 | 0.5 |
Others | 56.9 | 2.1 | 15.2 | - |
Total | 1,496.5 | 290.6 | 71.3 | 23.2 |
GEOGRAPHIC SPREAD
Country | % total |
Saudi Arabia | 51% |
Brunei | 41% |
Kuwait | 38% |
Yemen | 27% |
Qatar | 25% |
Malaysia | 22% |
UAE | 17% |
Bangladesh | 17% |