Continuation
Greater responsibility is
vested in the management of a stand-alone IIFS.
That will have more
accountability than Islamic window.
The Islamic window
approach also allows financial institutions to foster strategic partnerships
with other IIFSs, such as:
- takaful (Islamic insurance) companies;
- as well as other institutions offering:
o Islamic bank assurance products;
o and Shari’ah-compliant investment-linked products.
In fact, instrument
diffusion via Islamic windows is a widely used approach in most jurisdictions
trying to introduce Islamic finance.
It can also be a useful
tool for financial institutions.
By this way, they may test market readiness before launching a fully-fledged
Islamic entity.
From the research paper of
European Central Bank
(Authors: F.Mauro, P.Caristi, S.Couderc, A.D.Maria, L.Ho,
B.K.Grewal, S.Masciantonio, S. Ongena and S.Zaher)
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