Macroprudential Regulation and Policy for the Islamic Financial Industry ― Theory and Applications

This volume aims to discuss the current research, theory, methodology and applications of macroprudential regulation and policy for the Islamic financial industry. It features contributions from a workshop presented by Islamic Research and Training Institute (IRTI) in collaboration with University College of Bahrain (UCB) in Manama, Bahrain aimed to bring together experts in Islamic banking and regulation financial economics. This resulting book will shed light on how macroprudential policy may be implemented in the Islamic Financial System; and indicate current challenges and their effect on economic growth, financial stability and monetary regulation. 

Macroprudential policy is increasingly seen as a way of dealing with the different dimensions of systemic risk. But many central banks, bank supervisors and regulators have limited experience with macroprudential tools, particularly in the Islamic financial industry. Given the complementarities between monetary policy and financial stability, it appears that central banks would always play an important role in macroprudential policy. But how should macroprudential policy best interact with monetary policy? It is becoming more pressing for the central banks to conduct monetary policy in which its conventional banking system operates side by side with Islamic banking system. This question has received increasing attention in the research literature but there is much we still need to learn. This is why new insights from research on macroprudential policy – which has gained important impetus in recent years – are so valuable. 

Featuring contributions on topics such as macroprudential regulation, policy, tools and instruments; governance, systematic risk, monetary policy, and bank leverage, the editors provide a collection of comprehensive research covering the most important issues on macroprudential policy and regulation for the Islamic financial industry. This volume is expected to be a significant contribution to the literature in the field of Islamic finance and evaluation of public policies to promote the development for Islamic financial industry. It is also served as a key text for students, academics, researchers, policy-makers in the field of Islamic finance.

Dr. Muhamed Zulkhibriis a Senior Economist at Islamic Research and Training Institute, IslamicDevelopment Bank, Saudi Arabia with years of progressive experience in theCentral Bank of Malaysia and policy-oriented institutions. He involved indeveloping countries partnership strategy, undertaken research projects and advisoryworks with other development and policy-oriented institutions globally. He has authored extensively on Monetary Economics, Financial Institutions and Markets,Finance and Economic Development, Islamic Economics and Finance, with more than80 research articles in leading academic journal, regulatory publication,industry report and the financial press. Hehas been invited to speak at many international conferences and he has lecturedfor under- and post-graduate program at the University of Nottingham, U.K andUniversity Putra Malaysia. He earned a Ph.D in economics from University ofNottingham, United Kingdom. 

Dr. Abdul Ghafar Ismail isthe Head of Research division, Islamic Research and Training Institute, IslamicDevelopment Bank and a professor of banking and financial economics at theUniversity Kebangsaan Malaysia. He is on leave from Schoolof Economics, University Kebangsaan Malaysia. He has been lecturing at theuniversity since 1987 on economics and finance courses such as money andbanking, financial economics, advanced macroeconomics, Islamic economics system,money and capital market in Islam and international finance; Islamic banking;money, zakat and the real economy; risk management in Islamic banking; Islamicfinancial management. His specialization is in the area of Islamic economicsand finance. He has a Ph.D in economics from the University of Southampton,United Kingdom.

Dr. Sutan Emir Hidayatis the Head of Business Administration Department at University College ofBahrain, Bahrain. He has presented research papers at reputable international conferencessuch as the IRTI conferences, the GRM 2012, University of Cambridge, U.K, the11th Harvard University Forum on Islamic Finance, USA. He was also invited tospeak at AAOIFI-World Bank Annual Conference and MEIF 2015. He has alsopublished research papers in international journals and become a reviewer forthe IMEFM, Emerald and Review of Financial Economics, Elsevier. He also hascontributed chapters in four books. He is an Islamic finance journalistregularly publishes articles in Islamic Finance News. During his academiccareer, he has supervised and examined 32 Master Theses. Recognizing hiscontribution, he has been listed and awarded by ISFIN in Islamica 500 as one ofthe top 50 most influential people to the Islamic economy in 2015 on a globalscale.