In the basis of the current trends, we project that the Islamic banks will attain about 10% of the market share in the next few years. The State bank of Pakistan has developed a market-based regulatory framework including a high-powered Shari’ah Board to provide guidance on the Shari’ah compliance aspects of the business and regulations.
In the European Union we are currently in the process of setting up the European Systemic Risk Board (ESRB), a new body responsible for the macro-prudential oversight of the financial system. It is clear that macro-prudential risks may stem not only from the balance sheets of banks or other financial intermediaries, but also from the balance sheets of households.