Because of this regime, banks subject to the annual supervisory stress test have to this point more than doubled their high-quality capital, while shedding many of their riskiest assets and activities. 10  The reason why the non-G-SIB’s probability of failure is higher is because its capital ratio requirement is lower without a surcharge.
Islamic financial system lays down rules of conduct and contractual arrangements, and offers feasible financing structure which emphasize trade and equity financing that together will help the much needed financial diversification in Islamic countries. Islamic finance also has potential to blend economic and social objectives and address the ethical aspects of financing effectively.