Features of Regulation of Financial Intermediation in Islamic Financial Institutions

Relevance. According to official reports, hundreds of Islamic financial institutions are currently operating with a total capital of over 200 billion USD and the annual growth rate of the assets of these institutions is from 10 to 15 percent. The regulations governing Islamic financial institutions in each country is different. For this reason, some international organisations have been established with the aim of developing integrated standards and strengthening precautionary regulations in these institutions. The objective of the article is to examine the nature of extensible precautionary standards, risks and regulations of Islamic financial institutions. In addition, it analyses requirements of capital adequacy, the licensing process, and the impact of market regulations. Practical implications : the authors of the research propose a structure for the Islamic financial industry that facilitates to develop this industry within the framework of fundamental principles and precautionary risk management and helps to optimise its regulations.