Resolution Frameworks for Islamic Banks

Elsie Addo Awadzi, Carine Chartouni and Mario Tamez

No 2015/247, IMF Working Papers from International Monetary Fund

Abstract: Islamic banking is growing rapidly and its potential impact on global financial stability cannot be underestimated. International standards for resolving banks have evolved after the global financial crisis, culminating in the Financial Stability Board’s (“FSB”) Key Attributes of Effective Resolution Regimes for Financial Institutions. This paper examines the applicability of the Key Attributes to the resolution of Islamic banks. It concludes that a number of issues would need to be addressed, owing to Islamic banks’ unique governance structures and balance sheets. It recommends international guidance for the design of robust Shari`ah -compliant resolution frameworks for jurisdictions with Islamic banks.

Keywords: WP; Islamic bank; resolution framework; account holder; resolution authority; balance sheet; Islamic banks; Islamic bank resolution; bank resolution; RRPs help resolution authorities; originating bank; bank management; asset portfolio; Islamic banking; Bank resolution framework; Legal support in revenue administration; Special purpose vehicle; Global (search for similar items in EconPapers)
Pages: 34
Date: 2015-11-24
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Citations: View citations in EconPapers (2)

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