Jun, 2006
Overview of Islamic Finance
United States. Department of the Treasury. Office of International Affairs
El-Gamal, Mahmoud Amin
"Intensive efforts have been spent in recent years to harmonize Islamic financial practices, from cre¬ating accounting standards for Islamic financial products (through the Accounting and Auditing Organization for Islamic Financial Institutions, AAOIFI), to integration of those standards with global corporate and risk management standards (i.e., Basel Accords I and II) through the recently created Islamic Financial Services Board (IFSB). Those efforts are motivated by two objectives: (1) to create a worldwide network of financial mar¬kets, including the offshore markets in Labuan (off the Malaysian coast), Bahrain, and Dubai, thus enhancing depth and liquidity of markets for industry securities; and (2) to integrate the indus¬try more effectively with the international finan¬cial system. However, country and region-specific features have not faded away. We list some of the defining features of Islamic finance in the various relevant sub-regions in this section."
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