MUSCAT: A successful rolling out of Islamic financial products requires support from all parties concerned and formulation of just rules and regulations alone will not help, Hamoud Sangour Al Zadjali, executive president of the Central Bank of Oman, told a seminar here yesterday.
“Islamic finance cannot proceed just by the rules set by the regulators. It will be the culmination of efforts of all concerned.
There should be support, contributions from many and diligence and discipline from all,” he added, while addressing a seminar on Islamic banking organised by KPMG.
While conventional banking has been built mainly around monetary intermediation, interest with maturity between lender and borrower, Islamic finance is trying to break this by incorporating banking practices based on Sharia.
He said Islamic finance is trying to charter into new areas in a big way. While on the one side, it has to break the predominance of conventional banking and offer a range of products.
However, market acceptance, credibility and confidence are important. “There is a need to carry the people along, particularly on expectations and progress in a measures way.”
The CBO chief said Islamic finance is not money oriented, and it evolves around activities and caters to genuine financial needs in an equitable way.
Sangour said both CBO and the Capital Market Authority are working on a framework of regulation and guidelines.
“We should see the proposed Islamic banks and window operations of existing banks commencing operation in the first half of 2012.”
Several experts on Islamic finance, including Neil D Miler, Global Head of Islamic Finance, presented papers on various topics at the seminar.