Indeed, in light of weaknesses revealed by the financial crisis, the Basel Committee has developed a series of proposed enhancements to strengthen the Basel II framework. These enhancements will help ensure that banks’ risks, whether on- or off-balance sheet, are better reflected in minimum capital requirements, risk management practices and disclosures to the public.
Furthermore it induces higher financial discipline and places stringent ethical standards for all stakeholders that offers a strong and unique model of governance. Conclusion In conclusion, encouraging developments and trends in Islamic Finance lend confidence that this industry has taken off.