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Resolution Frameworks for Islamic Banks

Author

Listed:
  • Elsie Addo Awadzi
  • Carine Chartouni
  • Mario Tamez

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.

Suggested Citation

  • Elsie Addo Awadzi & Carine Chartouni & Mario Tamez, 2015. "Resolution Frameworks for Islamic Banks," IMF Working Papers 2015/247, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2015/247
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    References listed on IDEAS

    as
    1. Mr. In W Song & Carel Oosthuizen, 2014. "Islamic Banking Regulation and Supervision: Survey Results and Challenges," IMF Working Papers 2014/220, International Monetary Fund.
    2. Syed Ali, Salman, 2007. "Financial Distress And Bank Failure: Lessons From Closure Of Ihlas Finans In Turkey," Islamic Economic Studies, The Islamic Research and Training Institute (IRTI), vol. 14, pages 2-52.
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    Cited by:

    1. Hassan, M. Kabir & Aliyu, Sirajo, 2018. "A contemporary survey of islamic banking literature," Journal of Financial Stability, Elsevier, vol. 34(C), pages 12-43.
    2. Alfred Kammer & Mohamed Norat & Marco Pinon & Ananthakrishnan Prasad & Christopher M Towe & Zeine Zeidane, 2015. "Islamic Finance; Opportunities, Challenges, and Policy Options," IMF Staff Discussion Notes 15/5, International Monetary Fund.

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