Advertisement

Financial Undertakings, Open image in new window Rules, and the Internal Market Framework: Challenges and Opportunities

  • Gabriella Gimigliano
Chapter
Part of the Palgrave Studies in Islamic Banking, Finance, and Economics book series (IBFE)

Abstract

This chapter takes a normative approach to examining Islamic finance within a non-Islamic setting, namely, the European Union (EU). The whole analysis is constructed on the premise that the Rome I regulation on contractual obligations in civil and commercial transactions is based on connections or conflicts between the laws of different States and may not be applied to Sharia rules on the management of money because they represent the law of communities rather than of States.

Section 2.1 outlines some introductive remarks; Sect. 2.2 argues for allocating the process of accommodating Islamic finance within the EU regulatory framework. Sections 2.3, 2.4, and 2.5 examine the normative approaches to the regulatory accommodation process, combining the “business-based” and the “cultural-based” approaches; the former concern Sharia-compliant financial undertakings from the point of view of the economic activity performed, while the latter consider Islamic finance as a cultural experience, where the adjective “cultural” implies that Islamic finance should be conceived at least as a set of thinking and behaviours that every Muslim gradually comes to endorse through a socio-educational process of induction.

Keywords

Islamic finance Islamic banking EU legislation PSD2 directive MIFID1 MIFID2 EU passport 

Bibliography

  1. Azadeh Farhoush and Michael Mahlknecht (2013), A critical view on Islamic finance in Germany, in Cattelan (ed), Islamic finance in Europe, Edward Elgar Publishing: Cheltenham, Glos, UK, pp. 203–212.CrossRefGoogle Scholar
  2. Bank of England (2016), Consultation paper. Establishing Shari’ah-compliant central bank liquidity facility, February, pp. 1–21, https://www.bankofengland.co.uk/paper/2016/establishing-shariah-compliant-central-bank-liquidity-facilities-consultation-paper
  3. Behr Volker (2011), Rome I regulation. A –mostly- unified private international law of contractual relationship within –most- of the European Union, Journal of Law and Commerce, vol. 29, pp. 1–40.CrossRefGoogle Scholar
  4. Celia De Anca (2010), Investing with values: ethical investment versus Islamic investment, in Fahim Khan, Porzio (eds), Islamic banking and finance in the European Union. A challenge, Edward Elgar Publishing: Cheltenham, Glos, UK, pp. 128–147.Google Scholar
  5. Committee on Payments and Market Infrastructure – World Bank Group (2015), Payment aspects of financial inclusion. Consultative Report, 9f., http://www.worldbank.org
  6. Eleanor de Rosmorduc, Florence Stainer (2013), Luxembourg: a leading domicile for Shari’a compliant investments, in Cattelan, (ed), Islamic finance in Europe, Edward Elgar Publishing: Cheltenham, Glos, UK, pp. 179–191.CrossRefGoogle Scholar
  7. Elisabetta Montanaro (2010), Islamic banking: a challenge for the Basel Capital Accord, in Fahim Khan, Porzio (eds), Islamic banking and finance in the European Union. A challenge, Edward Elgar Publishing: Cheltenham, Glos, UK, pp. 112–127.Google Scholar
  8. Filippo di Mauro et al (2013), Islamic finance in Europe, Occasional Paper, n. 146, European Central Bank (ECB): Frankfurt, pp. 1–74: https://www.ecb.europa.eu/pub/pdf/scpops/ecbocp146.pdf
  9. Filippo Fontanelli (2011), Santi Romano and L’Ordinamento Giuridico: the relevance of a forgotten masterpiece for contemporary international, transnational and global legal relations, Transnational Legal Theory (2), pp. 67–117.CrossRefGoogle Scholar
  10. Frank Vogel (2010), Islamic finance: personal and enterprise banking, in Fahim Khan, Porzio (eds), Islamic banking and finance in the European Union. A challenge, Edward Elgar Publishing: Cheltenham, Glos, UK, 40–60.Google Scholar
  11. Gabriella Gimigliano (2010), Islamic banking and the duty of accommodation, in Khan, Porzio (eds), Islamic banking and finance in the European Union. A Challenge, Edward Elgar Publishing: Cheltenham, Glos, UK, 148–157.Google Scholar
  12. Gabriella Gimigliano (2013), Islamic banking in the European Union legal framework, in Cattelan, V. (ed), Islamic finance in Europe. Towards a plural financial system, Edward Elgar publishing: Cheltenham, Glos, UK, pp. 143–156.CrossRefGoogle Scholar
  13. Gabriella Gimigliano (2016), Investigating Islamic banking in Italy. Business-based and cultural-based analyses as complementary approaches, International Journal of Islamic and Middle Eastern Finance and Management, vol. 9 (3), pp. 364–387.CrossRefGoogle Scholar
  14. Gian Maria Piccinelli (2010), The provision and management of savings: the client-partner model, in Fahim Khan, Porzio (eds), Islamic banking and finance in the European Union. A challenge, Edward Elgar Publishing: Cheltenham, Glos, UK, pp. 23–39.Google Scholar
  15. Giorgio Gomel et al. (2010), Finanza islamica e sistemi finanziari convenzionali, Questioni di Economia e Finanza: Banca d’Italia, Quaderno n. 73, pp. 1–77, https://www.bancaditalia.it/pubblicazioni/qef/2010-0073/QEF_73.pdf
  16. Gohar Bilal (1999), Islamic Finance: Alternatives to the Western Model, 23 Fletcher Forum World Affairs 145, pp. 109–118. https://www.imf.org/external/pubs/ft/wp/wp9830.pdf, https://www.isfin.net/sites/isfin.com/files/islamic_finance_in_the_uk.pdf
  17. Ibrahim-Zeyyad Cekici (2013), Managing Islamic finance vis-à-vis laïcité: the case of France, in Cattelan, V. (ed), Islamic finance in Europe, Edward Elgar Publishing: Cheltenham, Glos, UK pp. 192–202.CrossRefGoogle Scholar
  18. Jan Hendrik Dalhuisen (2007), Financial Services, products, risks and regulation in Europe after the EU 1998 Action Plan and Basle II, European Business Law Review, pp. 819–1091.Google Scholar
  19. Jean Francois Seznec (1999), Ethics, Islamic banking and the global financial market, 23 Fletcher Forum World Affairs 161.Google Scholar
  20. Jennifer Payne (2015), The reform of deposit guarantee schemes in Europe, European Company and Financial Law Review (4), pp. 539–561.Google Scholar
  21. Johannes Engels (2010), German banking supervision and its relationship to Islamic banks, in Fahim Khan, Porzio (eds), Islamic banking and finance in the European Union. A challenge, Edward Elgar Publishing: Cheltenham, Glos, UK, pp. 174–188.Google Scholar
  22. Jonathan Ercanbrak, (2013), Regulating Islamic financial institutions in the UK, in Cattelan (ed), Islamic finance in Europe. Towards a plural financial system, Edward Elgar Publishing: Cheltenham, Glos, UK, pp. 157–175.CrossRefGoogle Scholar
  23. Kilian Bälz (2008), Sharia risk? How Islamic finance has transformed Islamic contract law, Harvard Law School: Occasional Paper, n. 9, 1–29.Google Scholar
  24. Louis Charpentier. (1998), The European Court of Justice and the rhetoric of affirmative action, European University Institute, Working Paper RSC, 98/30.Google Scholar
  25. Luc Gyselen (2000), ‘Case law’, Common Market Law Review, 37 (2), pp. 425–48.CrossRefGoogle Scholar
  26. Luca Errico, Mitra Farahbakhsh (1998), Islamic banking: issues in prudential regulations and supervision, International Monetary Fund Working Paper (30), pp. 1–32.CrossRefGoogle Scholar
  27. Luigi Donato, Maria Alessandra Freni (2010), Islamic banking and prudential supervision in Italy, in Fahim Khan, Porzio (eds), Islamic banking and finance in the European Union. A challenge, Edward Elgar Publishing: Cheltenham, Glos, UK, pp. 189–206;Google Scholar
  28. Mario Libertini (2011), Le clausole generali, norme di principio, norme a contenuto indeterminate. Una proposta di distinzione, Rivista critica del diritto privato, 2011, 345–378.Google Scholar
  29. Martin Moloney, (2015), Address by IFLC Head of Markets Policy at the UCD School of Law, at https://www.centralbank.ie/news/article/martin-moloney-at-iflc-at-the-ucd-school-of-law
  30. Mathias Rohe (2004), Application of Shari’a rules in Europe: scope and limits, Die Welt des Islams, New Series, vol. 44 (3), pp. 323–350.CrossRefGoogle Scholar
  31. Md Khairuddin Hj Arshad (2011), Implementation of an Islamic Deposit Insurance System for the Islamic Financial Services Industry, Fourth Islamic Financial Stability Forum, Kuala Lumpur, 17 November 2011 http://www.ifsb.org
  32. Mehmet Asutay (2013), Islamic moral economy as the foundation of Islamic finance, in Valentino Cattelan (ed), Islamic finance in Europe. Towards a plural financial system, Edward Elgar publishing: Cheltenham, Glos, UK, pp. 55–68.CrossRefGoogle Scholar
  33. Michael Ainley et al. (2007), Islamic finance in the UK: regulation and challenges, Financial Service Authority (FSA) November:Google Scholar
  34. Mohammed Fahim Khan (2010), Islamic banking in Europe: the regulatory challenge, in Khan, Porzio (eds), Islamic banking and finance in the European Union. A challenge, Cheltenham, pp. 61–75.Google Scholar
  35. Nicholas H. Foster (2007), Islamic finance law as an emergent legal system, Arab Law Quarterly 21, pp. 170–188.CrossRefGoogle Scholar
  36. Olha Cherednychenko (2014), Public Supervision over private relationships: towards European Supervision Private Law?, European Review of Private Law, pp. 37–68.Google Scholar
  37. Pietro Abbadessa, (2010), Islamic banking: impression of an Italian jurist, in Fahim Khan, Porzio (eds), Islamic banking and finance in the European Union. A challenge, Edward Elgar Publishing: Cheltenham, Glos, UK, pp. 207–211.Google Scholar
  38. Riccardo Ferrazza (2017), Arriva in Parlamento la proposta per portare la finanza islamica in Italia, Il Sole 24 Ore, 18th May.Google Scholar
  39. Rodney Wilson, (2010), Islamic banking in the United Kingdom, in Fahim Khan, Porzio (eds), Islamic banking and finance in the European Union. A challenge, Edward Elgar Publishing: Cheltenham, Glos, UK, pp. 212–221;Google Scholar
  40. Said M. Elfakhani, M. Kabir Hassan and Yusuf M. Sidani (2007), Islamic mutual funds, in M. Kabir Hassan, Mervyn Lewis (eds), Handbook of Islamic banking, Cheltenham, UK, p. 259.Google Scholar
  41. Samiul Hasan (2007), The Islamic concept of social justice: its possible contribution to ensuring harmony and peaceful coexistence in a globalised world, Macquarie Law Journal, vol. 7, pp. 167–183.Google Scholar
  42. Santi Romano (1962), L’ordinamento giuridico, Sansoni: Firenze.Google Scholar
  43. Simon Archer (2009), Profit-sharing investment accounts in Islamic banks: regulatory problems and possible solutions, Journal of Banking Regulation, pp. 300–306.Google Scholar
  44. Simon Archer, Rifaat Karim Abdel Ahmed, Volker Nienhaus (eds) (2009), Takaful Islamic insurance. Concepts and regulatory issues, Wiley and Sons: Singapore.Google Scholar
  45. Simon O’Neill (2015), The Islamic finance industry in Ireland, Country Report Ireland, Islamic Finance News, December, at http://www.aicc.ie/content/publications-0
  46. Simone Alvaro (2014), La finanza islamica nel contesto giuridico ed economico italiano, Quaderni di ricerca giuridica Consob, n. 6, pp. 1–68.Google Scholar
  47. Valentino Cattelan (2010), Islamic finance and ethical investment: some points of reconsideration, in Mohammad Fahim Khan, Mario Porzio (eds), Islamic banking and finance in the European Union. A challenge, Edward Elgar Publishing: Cheltenham, Glos, UK, 76–87.Google Scholar
  48. Valentino Cattelan (2013a), Introduction. Babel, Islamic finance and Europe: preliminary notes on property rights pluralism, in Cattelan (ed), Islamic finance in Europe. Towards a plural financial system, Edward Elgar publishing: Cheltenham, Glos, UK, pp. 1–12.Google Scholar
  49. Valentino Cattelan (2013b), Shariah economics as autonomous paradigm: theoretical approach and operative outcomes, Journal of Islamic Perspective on Science, Technology and Society, vol. 1 (1), pp. 3–11Google Scholar
  50. Valentino Cattelan (2016), “Equal for equal, hand to hand”: comparing Islamic and Western money, in Gabriella Gimigliano (ed), Money, Payment Systems and the European Union, Cambridge Scholars Publishing: Newcastle Upon Tyne, pp. 77–101.Google Scholar
  51. Zamir Iqbal, Abbas Mirakhor (1987), Islamic banking, International Monetary Fund. Washington.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Gabriella Gimigliano
    • 1
  1. 1.Business and Law DepartmentUniversity of SienaSienaItaly

Personalised recommendations