As distinct from these, there is now a wave across developed financial systems, such as U.K and Singapore, to introduce specific legislation and regulations to facilitate IF transactions. Depending on regulators’ adopted policy stance, approaches to issuance of licensing and role of regulator in Shariah compliance varies significantly. For instance, some regulators issue standard form of banking license (e.g.
Saudi Arabia) for both Islamic and conventional institutions, while others issue separate Islamic banking licenses (e.g. Malaysia). When regulators apply the same criteria and due diligence for licensing both IFIs and conventional institutions, they strengthen the competitive forces.