In this sense, it is crucial to advance in the international harmonization of domestic financial regulations – e.g. resolution regimens, accounting standards, provisioning rules, capital definitions. 2. Incentive structure: Regulations will not be effective if they do not alter incentive structures. Financial markets have some particularities. Within these particularities lie the incentives that make them vulnerable.
It has also gained further momentum following the financial crisis. Islamic banking accounts for about 80% of total Islamic financial assets but the development of Islamic securities, notably the sukuks, has also contributed to increasing this sector’s activity in international capital markets.