IMF urges ‘no favour, no obstacle’ approach to Islamic banking

Report urges countries to adopt more consistent prudential standards for Islamic banks

Malaysia is often seen as a leader in Islamic banking

Different countries are applying different standards to their Islamic banks and conventional banks, which could be harming the development of a potentially beneficial part of the financial industry, an International Monetary Fund staff report finds.

The study, based on a set of analyses of individual economies, finds countries that adopt “no favour, no obstacle” approaches to regulating Islamic banks tend to see faster growth in the sector.

“Progress in adapting the prudential, consumer

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