Jan 28 2010 |
more articles from
|
QFCA chief debunks Islamic finance myth
28 January 2010DAVOS: It's a myth to assume Islamic finance products are safer than conventional products and underlying risks should be studied more carefully, Qatar's top regulator said yesterday.
Despite being billed as a safer alternative to traditional banking because assets must underpin deals, Islamic bondholders have found they may not have any more legal safeguards than conventional counterparts in the event of default. Such issues were highlighted after sukuk or Islamic bonds had the first ever defaults last year.
"There is some assumption that some of it is cosmetically more comforting, but when so many Islamic instruments are now trying to mimic the effect of conventional products, you need to examine if they carry the same risk profile," Philip Thorpe, chief executive of Qatar Financial Centre Regulatory Authority , said.
© Copyright Zawya. All Rights Reserved.
More in Islamic Finance
Oddly Enough
- Marijuana waste helps turn pot-eating pigs into tasty pork roast
- Man climbs onto dome of St Peter's to protest Italian politics
- Prague metro plans to launch love train for singles
- Powerball jackpot grows to a record $600 million
- RPT-FEATURE-Change looms for Ethiopia's ancient salt trade
- There's More



Post Your Comment