Cross Border Islamic Banking Regulations. In: International Conference on Islamic Finance 2010, Sultan Sharif Ali Islamic University (Unissa), 1-2 Mac 2010, Brunei. (2010)
Abstract
The current statistics show that Islamic banking has entered into a global market. It seems this integration might be realized via several mechanisms. Some may argue that the integration via acquisitions are driven to exploit the efficiency gains obtained through buying other Islamic banks. But we may also argue that with support from recent studies in international politics, economics and banking finance, that these waves of acquisition are driven by political dynamics. The government of Malaysia were able to manage and, in some cases, direct foreign banks acquisitions of their respective national and regional banks. Through this process each nation-state crafted a more dynamic banking system with very large local players. In this paper, I examine their respective outcomes by analyzing the alignment of international actors, the alignment of domestic actors and the degree of domestic government autonomy. I explain why Malaysia was able to enhance their larger Islamic bank positions as champions while other nation-states saw much of their banking system acquired by foreign banks and non-bank actors. The more controversial forms of FDI involve industries of strategic interest, of which banking is one. Banks are at the center of modern economies. Banks are monitored and governed by national and international organizations established for that purpose and they lobby these organizations. Banks are also “privately monitored†by investors and other interested parties. Governmental actors are pulled and pushed toward banks and banks’ power. They are pulled by banks’ ability to deploy liquidity in productive ways, and pushed by the perceived need to regulate and monitor banking activity. These government officials experience an additional tug of war in that they face a conflict between acting for the public good and pursuing their private gain in their dealings with banks and banking regulation. The cases of Brazil and China display these conflicts and provide significant lessons for scholars, policy-makers and financial sector players.
| Item Type: | Conference or Workshop Item (Paper) |
|---|---|
| Keywords: | Islamic banking |
| Taxonomy: | By Niche > Islamic Banking > Banks and Banking > Finance |
| Local Content Hub: | Niche > Islamic Banking |
| Depositing User: | Ilya Nur Fateen Othman |
| Date Deposited: | 27 Jun 2025 05:36 |
| Last Modified: | 27 Jun 2025 05:36 |
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