But flexibility to be different between one jurisdiction to another should also be allowed in Islamic finance just as it is allowed in conventional finance.
ABF: Is there a need to impose more globally consistent regulations (e.g. in terms of liquidity management, financial reporting etc) for Islamic banks? Why or why not?
CIMB Islamic: Badlisyah Abdul Ghani, Executive Director and Chief Executive Officer
What is needed is for Islamic finance to be regulated in the same manner as conventional finance. If there is inconsistency or flexibility to be different in conventional finance between one jurisdiction to another, then the same inconsistency and flexibility should be allowed in Islamic finance.
We should not be asking for globally consistent regulation for Islamic finance when it may not necessarily exist in conventional finance. Notwithstanding, we should aim to have as much as possible a consistent regulatory framework in the same manner that we are trying to achieve in conventional finance, but it cannot be at the expense of making the industry rigid and less dynamic than conventional finance.
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