Where sharia meets the AMA

International standards often fall short when applied to Islamic finance. We look at the complexities of adjusting established laws to comply with the principles of sharia, and the moves under way to create a national data-pooling system for handling operational risk

Islamic banking is banking in consonance with the ethos and value system of Islam and governed, in addition to conventional governance and risk management rules, by the principles laid down by sharia – laws imposed by the Koran and the jurisprudence of Islamic tradition and scholars. Islamic banking is expected not only to avoid interest-based transactions, prohibited by sharia, but also to avoid unethical practices and participate in achieving the goals and objectives of an Islamic economy.

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