Financial architecture comprises of the globally acceptable core principles,best practice guidelines and standards that are need for the inclusiveness, effectiveness, resilience and sustainability of the financial system.

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
not-for-profit & charitable
motivations
Individual
motivations for-profit and commercial
motivations
❶ Prohibited &
condemned:
Interest-Riba-based
Permitted & safeguarded:
legitimate trading;
charitable lending & debt
transactions rescheduling

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

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

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

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

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