www.ameinfo.comIslamic finance needs to be wary of pitfalls: DFSA
Web posted at: 8/12/2008 3:32:20
Source ::: REUTERS
Web posted at: 8/12/2008 3:32:20
Source ::: REUTERS
KUALA LUMPUR • The booming Islamic finance industry needs tighter regulation to avoid the problems plaguing conventional global financial markets such as the sub-prime crisis, the Dubai Financial Services Authority (DFSA) said yesterday.
“When you’re caught up in the euphoria of growth, sometimes standards slide,” said Michael Zamorski, the Dubai authority’s managing director for supervision told Reuters on the sidelines of an Islamic finance forum.
“Whenever you have a fast-growing industry segment, they need to make sure that their human capital and the infrastructure are sufficient to ensure that the activities are conducted prudently.”
Islamic finance is based on the Shariah which forbids investments involving interest payments, contractual uncertainty, gambling and weapons.
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