Deposit insurance in Islamic banking
Following the global financial crisis, many countries introduced or enhanced deposit protection schemes to increase customer confidence in their banking systems. In the Eurozone, for example, bank deposits of up to 100,000 are guaranteed. In China, as part of its financial reforms in 2015, deposits of up to 500,000 yuan are protected by the Peoples Bank. Only a minority of Muslim majority countries have formal deposit protection schemes, Malaysia being the pioneer, with the scheme provided by Perbadanan Insurans Deposit Malaysia (PIDM) covering deposits of up to RM250,000; less generous cover than the Chinese scheme.
Risk sharing , Deposit insurance , Islamic finance , Islamic banking , Shariah compliant
Wilson, R. (2016, February 16-17). Deposit insurance in Islamic banking. Paper presented at the Islamic Finance Workshop: Regional Perspective, at Singapore.