ISLAMIC FINANCE REGULATIONS IN MALAYSIA: A MACRO MAQASIDIC APPROACH

Authors

  • Younes Soualhi
  • Said Bouhraouia

DOI:

https://doi.org/10.31436/shajarah.v0i0.726

Keywords:

macro maqasid, regulations, central bank, Shari’ah compliance.

Abstract

The research aims primarily to identify the main macro objectives of
Shari’ah (macro maqasid) that the regulators are supposed to imbue in
the Acts and guidelines governing Islamic Financial Institutions.
Focusing on Malaysia, the research starts with the conceptual
framework of Islamic finance regulations, which addresses the
objectives enshrined in the Acts and guidelines promulgated. After
exposing the overall environment of Islamic finance in Malaysia, the
research discussed some obstacles of regulations, namely harmonization
between Shari’ah and law and its potential impact on the realization of
maqasid al-Shari’ah. In order to give a glimpse on further obstacles, the
research briefly discussed the governance framework, the prudential
and risk management regulations, and the Shari’ah standards in terms
of maqasid compliance. The research found that the Malaysian expertise
in Islamic regulation is very commendable but no free from criticism as
some are deemed maqasid non-compliant. More importantly, the
research delineated the macro maqasid entrusted with the regulators to
observe and imbue in the regulations of Islamic finance. The research
found that Islamic finance regulations are not completely independent
from conventional ones, let alone the independence from international
regulatory regimes and practices. This should call for the propounding
of a theory of maqasid specific to Islamic finance focusing on
regulations at macro-economic level. The study recommends the
operationalization of the macro maqasid at the regulatory level first
before operationalizing them at the level of Islamic financial
Institutions.

Downloads

Download data is not yet available.

Downloads

Published

2018-12-01

How to Cite

Soualhi, Younes, and Said Bouhraouia. 2018. “ISLAMIC FINANCE REGULATIONS IN MALAYSIA: A MACRO MAQASIDIC APPROACH”. Al-Shajarah: Journal of the International Institute of Islamic Thought and Civilization (ISTAC), December, 307-36. https://doi.org/10.31436/shajarah.v0i0.726.