islamic finance infratructure
DESCRIPTION
Financial infrastructure comprises of the resources, public policy support, protection, facilities and utilities that make the use of the financial architecture beneficial for developing an inclusive, dynamic and resilient financial system.TRANSCRIPT
Islamic finance
Infrastructure
Tariqullah Khan
Financial infrastructure comprises of the resources, support, protection, facilities and utilities that make the use of architecture beneficial for developing an inclusive, dynamic and resilient financial system
----- just like water, electrical, lighting, heating, communication, furniture etc., in a building that make the utilization of the building’s full capacity possible
Financial infrastructure shall be seen as work in progress and must be
subjected to continuous improvement
----- just like the water, electrical, lighting, heating, communication, furniture etc., in a building that
need maintenance and improvement
Pillar 1 Pillar 2 Pillar 3
The 5 Pillars of financial
infrastructure
Legal & regulatory
infrastructure
Transparency & governance infrastructure
Systemic liquidity
infrastructure
Pillar 4 Pillar 5
Human resources R&D infrastructure
Shariah governance
infrastructure
Pillar 1 Pillar 2 Pillar 3
Legal & regulatory
infrastructure
Transparency & governance infrastructure
Systemic liquidity
infrastructure
Pillar 5 Pillar 6
Human resources R&D infrastructure
Shariah governance
infrastructure
□banking & company laws, □contracts, □property rights,
□insolvency and creditor rights regime, □financial safety nets,
□regulatory & supervisory regimes
Pillar 1 Pillar 2 Pillar 3
Legal & regulatory
infrastructure
Transparency & governance infrastructure
Systemic liquidity
infrastructure
Pillar 5 Pillar 6
Human resources R&D infrastructure
Shariah governance
infrastructure
□monetary & financial policy transparency and neutrality, □corporate
governance, accounting and auditing framework, □disclosure regime & market monitoring arrangements such as credit
ratings, and credit reporting systems
Pillar 1 Pillar 2 Pillar 3
Legal & regulatory
infrastructure
Transparency & governance infrastructure
Systemic liquidity
infrastructure
Pillar 5 Pillar 6
Human resources R&D infrastructure
Shariah governance
infrastructure
□monetary and exchange operations, □payment and securities
settlement systems, □ microstructure of the money,
exchange and securities markets
Pillar 1 Pillar 2 Pillar 3
Legal & regulatory
infrastructure
Transparency & governance infrastructure
Systemic liquidity
infrastructure
Pillar 4 Pillar 5
Human resources R&D infrastructure
Shariah governance
infrastructure
□literacy, educational, training, certification programs, □research,
advisory services & product development, □Shariah governance
competencies, □information services
Pillar 1 Pillar 2 Pillar 3
Legal & regulatory
infrastructure
Transparency & governance infrastructure
Systemic liquidity
infrastructure
Pillar 4 Pillar 5
Human resources R&D infrastructure
Shariah governance
infrastructure
□Legal protection for Shariah supervision, □arbitration & reconciliation framework, □governance of Shariah supervision, □central Shariah advisory board, □licensing of Islamic financial
Stakeholders
Macro Level
Meso Level
Micro Level
Users of services
Authorities concerned with legal, regulatory and tax framework and policies
Knowledge, educational, capacity building, information and advisory services and providersFinancial services and the institutions and markets providing them
Uses and users
Users of financial services
Individuals, families and households
International and domestic
traders
Non-financial
businesses
International organizations
Governments and
government agencies
Not-for-profit organizations
Financial businesses
Payments and remittance
services
Equity issuers
Micro & special finance
services
Debt instrument
issuers
Investment & Strategy advisory services
Insurance companies
Other non-banking financial
institutions
Banks (deposit taking
institutions)
Fund managers
Micro level components of financial services &
their development
Meso level components of financial
sector development
Markets and market micro
structures
Physical and ITC
infrastructure
Training and
capacity building
Data and information
services
Education & literacy services
Rating services
Services of associations of
service providers and
users
Legal and advisory services
Best practice standard &
standard setters
Markets and market micro
structures
Foreign exchange markets
Government debt
markets
Money markets
Quasi debt markets
Private debt markets
Equity and share
markets
Macro level components of
FSD
Investors rights
regimes
Corporate governance framework
Lender of last resort framework
Property rights
Judiciary & arbitration
Macro economic
policy framework
Tax framework
Regulatory &
supervisory framework
Legal framework