In search of sharia-compliant resolution framework for islamic banks: The case of Indonesia

Ronald Rulindo, Muhammad Rifqi
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Abstract

Purpose – This paper investigates Sharia concerns on existing bank resolution framework and propose recommendations on how to resolve those concerns in Sharia-compliant manners. It also assesses compatibility of resolution powers mandated by the FSB’s Key Attributes of Effective Resolution Regimes for Financial Institutions if applied to resolve failed Islamic bank, especially focusing on operational aspect of executing the resolution options. Methodology – We conduct a series of focus group discussion with various relevant stakeholders, including Indonesian Sharia scholars, regulators, professional associations, Islamic bankers and academics. The discussions were performed in group interviews format, with the authors took part as moderators. The discussions took place between July 2020 to January 2021, and were part of development of fatwa and regulations on the resolution for Islamic banks.Findings – In general, the existing bank resolution framework can be applied to Islamic banks. However, there are some resolution powers of the authority that possesses inherent sharia issues, but are still allowed according to Dewan Syariah Nasional (DSN) (the National Sharia Council). There should be clear measures attached to those powers prior to implementation. For some aspects, some adjustments to the resolution powers are also needed through establishment of infrastructures and regulations, particularly with regards to resolution options.Originality – The novelty of this study is the analysis of suitability of banking resolution issues from Sharia perspective. This paper also serves to enhance awareness on issues related to resolution of Islamic banks and promote wider implementation of Sharia approaches for bank resolution in other jurisdictions.
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为伊斯兰银行寻找符合伊斯兰教法的解决框架:以印度尼西亚为例
目的-本文调查伊斯兰教法对现有银行决议框架的关注,并就如何以符合伊斯兰教法的方式解决这些问题提出建议。本报告还评估了金融稳定理事会《金融机构有效处置机制的关键属性》规定的处置权力在处置失败的伊斯兰银行时的兼容性,尤其侧重于执行处置方案的操作方面。方法-我们与各种相关利益相关者进行了一系列焦点小组讨论,包括印度尼西亚伊斯兰教法学者、监管机构、专业协会、伊斯兰银行家和学者。讨论以小组访谈的形式进行,作者作为主持人参与讨论。这些讨论是在2020年7月至2021年1月期间进行的,是制定伊斯兰银行决议的法特瓦和法规的一部分。调查结果-一般而言,现有的银行处置框架可适用于伊斯兰银行。然而,有一些具有固有伊斯兰教法问题的权威的决议权力,但根据Dewan Syariah Nasional (DSN)(国家伊斯兰教法委员会)仍然允许。在执行这些权力之前,应附有明确的措施。在某些方面,还需要通过建立基础设施和法规对决议权力进行一些调整,特别是在决议选择方面。独创性-本研究的新颖之处在于从伊斯兰教法的角度分析银行处置问题的适宜性。本文还有助于提高对解决伊斯兰银行问题的认识,并促进在其他司法管辖区更广泛地实施伊斯兰教法解决银行问题的方法。
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发文量
21
审稿时长
10 weeks
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