Macroprudential Regulation and Policy for the Islamic Financial Industry

Dr. Muhamed Zulkhibriis a Senior Economist at Islamic Research and Training Institute, IslamicDevelopment Bank, Saudi Arabia with years of progressive experience in theCentral Bank of Malaysia and policy-oriented institutions. He involved indeveloping countries partnership strategy, undertaken research projects and advisoryworks with other development and policy-oriented institutions globally. He has authored extensively on Monetary Economics, Financial Institutions and Markets,Finance and Economic Development, Islamic Economics and Finance, with more than80 research articles in leading academic journal, regulatory publication,industry report and the financial press. Hehas been invited to speak at many international conferences and he has lecturedfor under- and post-graduate program at the University of Nottingham, U.K andUniversity Putra Malaysia. He earned a Ph.D in economics from University ofNottingham, United Kingdom. Dr. Abdul Ghafar Ismail isthe Head of Research division, Islamic Research and Training Institute, IslamicDevelopment Bank and a professor of banking and financial economics at theUniversity Kebangsaan Malaysia. He is on leave from Schoolof Economics, University Kebangsaan Malaysia. He has been lecturing at theuniversity since 1987 on economics and finance courses such as money andbanking, financial economics, advanced macroeconomics, Islamic economics system,money and capital market in Islam and international finance; Islamic banking;money, zakat and the real economy; risk management in Islamic banking; Islamicfinancial management. His specialization is in the area of Islamic economicsand finance. He has a Ph.D in economics from the University of Southampton,United Kingdom.Dr. Sutan Emir Hidayatis the Head of Business Administration Department at University College ofBahrain, Bahrain. He has presented research papers at reputable international conferencessuch as the IRTIconferences, the GRM 2012, University of Cambridge, U.K, the11th Harvard University Forum on Islamic Finance, USA. He was also invited tospeak at AAOIFI-World Bank Annual Conference and MEIF 2015. He has alsopublished research papers in international journals and become a reviewer forthe IMEFM, Emerald and Review of Financial Economics, Elsevier. He also hascontributed chapters in four books. He is an Islamic finance journalistregularly publishes articles in Islamic Finance News. During his academiccareer, he has supervised and examined 32 Master Theses. Recognizing hiscontribution, he has been listed and awarded by ISFIN in Islamica 500 as one ofthe top 50 most influential people to the Islamic economy in 2015 on a globalscale.

• Part I. Institutional Framework for Macroprudential in Islamic Banking System.- 1. Macroprudential Policy and Regulation in A Dual Banking System: An Exploratory Perspective.- 2. Doctrinal Challenge for Islamic Banking on Macroprudential Regulations: A Religion-Regulation Mismatch 2.0.- 3. Conceptual Proposal for Future Macroprudential Framework under Dual Financial System in Indonesia.- Part II. Macroprudential Policy, Systemic Risks and Financial Stability in Islamic Financial Industry.- 4. Risk Management Methodologies: An Empirical Macro-prudential Approach for a Resilient Regulatory Framework for the Islamic Finance Industry.- 5. Competitive Condition and Market Power of Islamic and Commercial Conventional Banks in Indonesia.- 6. Early Warning Indicators and Macroprudential Policy Tools.- 7. A Proposed Formula for Reserve Requirement–Financing to Deposit Ratio: The Case of Islamic Banking in Indonesia.- 8. Testing of the Procyclicality of Islamic and Conventional Banks in Indonesia.- 9. Short-Term Liquidity Management Mechanisms in the Absence of Islamic Interbank Loan Markets.- Part III. Experiences in Implementing Macroprudential Policy in a Dual Banking System.- 10. Macroprudential Analysis of Financial Crisis Impacts on Banks’ Soundness: Evidence from Pakistan.- 11. Regulatory Framework for Islamic Finance: Malaysia’s Initiative.- 12. Islamic Finance and Macroprudential Policy: The Case of Iranian Banking System.- Part IV. Interplay between Macroprudential Policy with Other Markets.- 13. Indonesia Shari’ah Compliance Stock Index Responses towards Macroprudential and Monetary Policy of Indonesia Central Bank.- 14. Socio-Economic Development and its Effect on Performance of Islamic Banks: Dynamic Panel Approaches.- 15. Macroprudential Tools and Its Relationship withMonetary Policy Tools.