1. The Islamic finance Architecture Tariqullah Khan

2. The architecture of the financial system comprises of a number of vital and permanent principles and components ---- just like the foundations, pillars, ceiling etc., are critical elements of a building’s architecture

3. Financial infrastructure comprises of the resources, facilities and utilities that make the use of architecture beneficial for building an inclusive, dynamic and resilient financial system ----- just like the water, electrical, lightening, heating, communication, furniture etc., in a building that make the utilization of the building’s full capacity possible

4. Financial architecture has to be stable and could NOT be subjected to frequent changes ------ just like the foundations, pillars and ceiling of a building that cannot be changed Financial infrastructure is work in progress and must be subjected to continues improvement ----- just like the water, electrical, lightening, heating, communication, furniture etc., in a building that need maintenance and improvement

5. The objective of the Islamic financial architecture is to ensure that the financial system operates inclusively, efficiently and soundly in a sustainable and resilient manner and according to the aspirations of the individuals, society and all stakeholders in compliance with international best practice principles, guidelines and standards

6. the architecture - foundations, pillars and roof of Islamic finance Individual motivations not-for-profit & charitable motivations for-profit and commercial motivations ❶ Prohibited & condemned: Interest-Riba-based transactions Permitted & safeguarded: legitimate trading; charitable lending & debt rescheduling

7. the architecture - foundations, pillars and roof of Islamic finance ❷ Markets and property rights Ownership of an asset has intertwined risks and benefits The risks and benefits of an asset shall not be separated and traded separately What is not owned should not be sold In contracts there should not be any room for ambiguities

8. the architecture - foundations, pillars and roof of Islamic finance ❸ Social ideals Objectives of the legal system Preservation of wealth Preservation of intellect Preservation of faith Rights of future generations Human rights & dignity

9. the architecture - foundations, pillars and roof of Islamic finance ❹ Moral standards Financial rate of return is subject to moral standards Shariah screening of products Documentation and disclosure standards Principles based internal Shariah supervision

10. the architecture - foundations, pillars and roof of Islamic finance ❺ Best practice standards Internationally credible & comparable Products & services Internal control & risk management Governance & stakeholders'’ rights & responsibilities Ownership risk and capital adequacy Transparency & disclosures

11. the architecture - foundations, pillars and roof of Islamic finance ❻ Innovation & renovation Guided freedom for innovation All is permitted that is not expressly prohibited