Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
The Islamic finance Architecture Tariqullah Khan The architecture of the financial system comprises of a number of vital and permanent principles and components ---- just like the foundations, pillars, ceiling etc., are critical elements of a building’s architecture Financial infrastructure comprises of the resources, facilities and utilities that make the use of architecture beneficial for building an inclusive, dynamic and resilient financial system ----- just like the water, electrical, lightening, heating, communication, furniture etc., in a building that make the utilization of the building’s full capacity possible Financial architecture has to be stable and could NOT be subjected to frequent changes ------ just like the foundations, pillars and ceiling of a building that cannot be changed Financial infrastructure is work in progress and must be subjected to continues improvement ----- just like the water, electrical, lightening, heating, communication, furniture etc., in a building that need maintenance and improvement The objective of the Islamic financial architecture is to ensure that the financial system operates inclusively, efficiently and soundly in a sustainable and resilient manner and according to the aspirations of the individuals, society and all stakeholders in compliance with international best practice principles, guidelines and standards the architecture - foundations, pillars and roof of Islamic finance Individual motivations ❶ Prohibited & condemned: Interest-Riba-based transactions not-for-profit & charitable motivations for-profit and commercial motivations Permitted & safeguarded: legitimate trading; charitable lending & debt rescheduling the architecture - foundations, pillars and roof of Islamic finance Markets and property rights ❷ In contracts there should not be any room for ambiguities Ownership of an asset has intertwined risks and benefits What is not owned should not be sold The risks and benefits of an asset shall not be separated and traded separately the architecture - foundations, pillars and roof of Islamic finance Social ideals ❸ Rights of future generations Preservation of faith Objectives of the legal system Preservation of intellect Human rights & dignity Preservation of wealth the architecture - foundations, pillars and roof of Islamic finance Financial rate of return is subject to moral standards Moral standards ❹ Documentation and disclosure standards Principles based internal Shariah supervision Shariah screening of products the architecture - foundations, pillars and roof of Islamic finance Internationally credible & comparable Best practice standards ❺ Ownership risk and capital adequacy Governance & stakeholders'’ rights & responsibilities Internal control & risk management Transparency & disclosures Products & services the architecture - foundations, pillars and roof of Islamic finance Innovation & renovation ❻ Guided freedom for innovation All is permitted that is not expressly prohibited