Islamic finance Infrastructure

1. Islamic finance Infrastructure Tariqullah Khan

2. 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

3. 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

4. The 5 Pillars of financial infrastructure Pillar 1 Pillar 5 Pillar 2 Pillar 3 Pillar 4 Legal & regulatory infrastructure Shariah governance infrastructure Transparency & governance infrastructure Systemic liquidity infrastructure Human resources R&D infrastructure

5. □banking & company laws, □contracts, □property rights, □insolvency and creditor rights regime, □financial safety nets, □regulatory & supervisory regimes Pillar 1 Pillar 6 Pillar 2 Pillar 3 Pillar 5 Legal & regulatory infrastructure Shariah governance infrastructure Transparency & governance infrastructure Systemic liquidity infrastructure Human resources R&D infrastructure

6. □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 6 Pillar 2 Pillar 3 Pillar 5 Legal & regulatory infrastructure Shariah governance infrastructure Transparency & governance infrastructure Systemic liquidity infrastructure Human resources R&D infrastructure

7. □monetary and exchange operations, □payment and securities settlement systems, □ microstructure of the money, exchange and securities markets Pillar 1 Pillar 6 Pillar 2 Pillar 3 Pillar 5 Legal & regulatory infrastructure Shariah governance infrastructure Transparency & governance infrastructure Systemic liquidity infrastructure Human resources R&D infrastructure

8. □literacy, educational, training, certification programs, □research, advisory services & product development, □Shariah governance competencies, □information services Pillar 1 Pillar 5 Pillar 2 Pillar 3 Pillar 4 Legal & regulatory infrastructure Shariah governance infrastructure Transparency & governance infrastructure Systemic liquidity infrastructure Human resources R&D infrastructure

9. □Legal protection for Shariah supervision, □arbitration & reconciliation framework, □governance of Shariah supervision, □central Shariah advisory board, □licensing of Islamic financial Pillar 1 Pillar 5 Pillar 2 Pillar 3 Pillar 4 Legal & regulatory infrastructure Shariah governance infrastructure Transparency & governance infrastructure Systemic liquidity infrastructure Human resources R&D infrastructure

10. Stakeholders Authorities concerned with legal, regulatory and tax framework and policies Knowledge, educational, capacity building, information and advisory services and providers Financial services and the institutions and markets providing them Uses and users

11. Non-financial businesses Individuals, families and households Financial businesses Users of financial services International and domestic traders Not-for-profit organizations International organizations Governments and government agencies

12. Banks (deposit taking institutions) Insurance companies Fund managers Investment & Strategy advisory services Micro level components of financial services & their development Other non-banking financial institutions Micro & special finance services Debt instrument issuers Equity issuers Payments and remittance services

13. Rating services Education & literacy services Best practice standard & standard setters Training and capacity building Meso level components of financial sector development Legal and advisory services Data and information services Services of associations of service providers and users Physical and ITC infrastructure Markets and market micro structures

14. Private debt markets Equity and share markets Quasi debt markets Markets and market micro structures Money markets Foreign exchange markets Government debt markets

15. Legal framework Regulatory & supervisory framework Tax framework Investors rights regimes Macro level components of FSD Macro economic policy framework Corporate governance framework Judiciary & arbitration Lender of last resort framework Property rights