Supervision of Regulation and Challenges †MyAssignmenthelp.com

Question: Discuss about the Supervision of Regulation and Challenges. Answer: Introduction: From the above discussion it can be concluded that Islamic finance started gaining importance after the 2008 global financial crisis. The essay examined the development of Islamic finance in the UAE and how it has emerged as the alternative banking in the country since the last 50 years. It also explained that various factors that promoted the growth of Islamic finance like awareness on the part of the government institution related with the significance of promoting Islamic finance as Shariah complaint in the development of the country. It reviewed the public awareness on the growth of Islamic finance and financial system as better banking system (Ainley, et al., 2007). The major advantage of Islamic finance as observed from the literature review is that they do not follow the concept of investing money in speculative business of trading and chance games. In fact they operate the system as Shariah complaint and it is considered seriously by western researcher whereby normal banking should follow the same principle. Islamic finance offer diversity in the portfolio to both companies and individuals. In addition they are fulfilling the needs of their market segment that is rapidly growing. With the passage of time the Islamic finance is becoming more and more sophisticated. The constant evolution of the regulatory and policy framework and growing market of Islamic finance explain the growing capacity and stability of the concept (Archer, Karim, 2007). It is challenging the conventional banking concept as more and more banking institution and financial institution are adopting the Islamic finance. Thus it indicates the Islamic finance will evolve further. References Ainley, M., Mashayekhi, A., Hicks, R., Rahman, A., Ravalia, A. (2007). Islamic finance in the UK: Regulation and challenges. London: Financial Services Authority, 13. Archer, S., Karim, R. A. A. (2007). Supervision of Islamic Banks and Basel II: the Regulatory Challenge. Islamic finance: the regulatory challenge, 1-7.