Islamic Banking and Finance in the European Union: A Challenge (Studies in Islamic Finance, Accounting and Governance series)

This timely book examines the authorisation of Shari'ah-compliant intermediaries as either credit institutions or as investment companies in the European Union. The contributing authors explore the key topics of this area through differing yet parallel perspectives - for example, comparing economic and legal standpoints, looking at both European and national levels and considering both academic and technical approaches. The book discusses the common origin of Islamic and Western traditions in commercial and banking transactions, reviewing a period in which the Italian merchants and their organizations drove the rebirth of post-medieval society in trade and law. The editors investigate whether the Islamic banking and financial model complies with the European framework, spelling out the different experiences in single Member States (Germany, France, Italy, and the United Kingdom). Notwithstanding the obstacles to being authorised as domestic credit institutions, they conclude that the access of Islamic intermediaries is suitable and may have positive effects on European integration, as well as increasing the competition among the stand-still operators and evoking the ethical dimension of banking and finance. The book also highlights how Islamic banking would make the industry more inclusive. This multidisciplinary book will appeal greatly to economics and legal scholars with an interest in European and international banking and financial law, as well as postgraduate students in international law and banking law. Practitioners and regulators will also find this book an invaluable resource. Copyright......Page 5 Contents......Page 6 Contributors......Page 8 Preface......Page 9 Acknowledgements......Page 11 Introduction......Page 12 PART I Historical background......Page 20 1. From the poor to the merchant......Page 22 PART II Islamic banking business......Page 32 2. The provision and management of savings: the client–partner model......Page 34 3. Islamic finance: personal and enterprise banking......Page 51 4. Islamic banking in Europe: the regulatory challenge......Page 72 5. Islamic finance and ethical investments: some points of reconsideration......Page 87 PART III The challenge......Page 100 6. Islamic banking versus conventional banking......Page 102 7. Islamic banking: a challenge for the Basel Capital Accord......Page 123 8. Investing with values: ethical investment versus Islamic investment......Page 139 9. Islamic banking and the ‘duty of accommodation’......Page 159 10. The remuneration of sight accounts and the feasible competition between Islamic and Western systems......Page 169 PART IV Response from the European countries: English, French, German and Italian experiences......Page 176 11. The French licensing authority faced with the globalisation of Islamic finance: a flexible position......Page 178 12. German banking supervision and its relationship to Islamic banks......Page 185 13. Islamic banking and prudential supervision in Italy......Page 200 14. Islamic banking: impression of an Italian jurist......Page 218 15. Islamic banking in the United Kingdom......Page 223 16. The riba prohibition and payment institutions......Page 233 Glossary......Page 238 Index......Page 240 "This timely book examines the authorization of Shari'ah-compliant intermediaries as either credit institutions or as investment companies in the European Union." "The contributing authors explore the key topics of this area through differing yet parallel perspectives - for example, comparing economic and legal standpoints, looking at both European and national levels and considering both academic and technical approaches. The book discusses the common origin of Islamic and Western traditions in commercial and banking transactions, reviewing a period in which the Italian merchants and their organizations drove the rebirth of post-medieval society in trade and law. The editors investigate whether the Islamic banking and financial model complies with the European framework, spelling out the different experiences in single Member States (Germany, France, Italy, and the United Kingdom). Notwithstanding the obstacles to being authorized as domestic credit institutions, they conclude that the access of Islamic intermediaries is suitable and may have positive effects on European integration, as well as increasing the competition among the stand-still operators and evoking the ethical dimension of banking and finance. The book also highlights how Islamic banking would make the industry more inclusive." "This multidisciplinary book will appeal greatly to economics and legal scholars with an interest in European and international banking and financial law, as well as postgraduate students in international law and banking law. Practitioners and regulators will also find this book an invaluable resource."--Jacket Copyright 5 Contents 6 Contributors 8 Preface 9 Acknowledgements 11 Introduction 12 PART I Historical background 20 1. From the poor to the merchant 22 PART II Islamic banking business 32 2. The provision and management of savings: the client–partner model 34 3. Islamic finance: personal and enterprise banking 51 4. Islamic banking in Europe: the regulatory challenge 72 5. Islamic finance and ethical investments: some points of reconsideration 87 PART III The challenge 100 6. Islamic banking versus conventional banking 102 7. Islamic banking: a challenge for the Basel Capital Accord 123 8. Investing with values: ethical investment versus Islamic investment 139 9. Islamic banking and the ‘duty of accommodation’ 159 10. The remuneration of sight accounts and the feasible competition between Islamic and Western systems 169 PART IV Response from the European countries: English, French, German and Italian experiences 176 11. The French licensing authority faced with the globalisation of Islamic finance: a flexible position 178 12. German banking supervision and its relationship to Islamic banks 185 13. Islamic banking and prudential supervision in Italy 200 14. Islamic banking: impression of an Italian jurist 218 15. Islamic banking in the United Kingdom 223 16. The riba prohibition and payment institutions 233 Glossary 238 Index 240 1849800170,9781849800174