Macroprudential Regulation and Policy for the Islamic Financial Industry

Theory and Applications

  • Muhamed Zulkhibri
  • Abdul Ghafar Ismail
  • Sutan Emir Hidayat

Table of contents

  1. Front Matter
    Pages i-xvi
  2. Institutional Framework for Macroprudential in Islamic Banking System

    1. Front Matter
      Pages 1-1
    2. Ascarya, Adiwarman A. Karim, Siti Rahmawati, Masyhudi Muqorrobin, Dimas Bagus Wiranatakusuma
      Pages 35-53
  3. Macroprudential Policy, Systemic Risks and Financial Stability in Islamic Financial Industry

  4. Experiences in Implementing Macroprudential Policy in a Dual Banking System

    1. Front Matter
      Pages 161-161
    2. Siti Muawanah Lajis, Obiyathulla Ismath Bacha, Abbas Mirakhor
      Pages 177-192
  5. Interplay Between Macroprudential Policy with Other Markets

    1. Front Matter
      Pages 211-211
    2. Mohammad Ashraful Ferdous Chowdhury, Md. Mahmudul Haque, Syed Othman Alhabshi, Abul Mansur Mohammed Masih
      Pages 229-243
    3. Abdul Ghafar Ismail, Zuriyati Ahmad
      Pages 245-272

About this book


This volume aims to discuss the current research, theory, methodology and applications of macropreudential regulation and policy for the Islamic financial industry. Published in cooperation with the Islamic Research and Training Institute (IRTI), this book features contributions from a workshop presented in collaboration with the University College of Bahrain (UCB) in Manama, Bahrain, aimed to bring together experts in Islamic banking and regulation and financial economics. This resulting book sheds light on how macroprudential policy may be implemented in the Islamic financial system, and indicates current challenges and their effects 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.


Economic Growth Financial Stability Islamic Finance Industry Macroprudential Regulation Monetary Policy Monetary Regulation Systematic Risk

Editors and affiliations

  • Muhamed Zulkhibri
    • 1
  • Abdul Ghafar Ismail
    • 2
  • Sutan Emir Hidayat
    • 3
  1. 1.Islamic Development BankIslamic Research and Training InstituteJeddahSaudi Arabia
  2. 2.Islamic Development BankIslamic Research and Training InstituteJeddahSaudi Arabia
  3. 3.University College of BahrainBusiness Administration DepartmentManamaBahrain

Bibliographic information

  • DOI
  • Copyright Information Springer International Publishing Switzerland 2016
  • Publisher Name Springer, Cham
  • eBook Packages Economics and Finance
  • Print ISBN 978-3-319-30443-4
  • Online ISBN 978-3-319-30445-8
  • Buy this book on publisher's site
Industry Sectors
Finance, Business & Banking