Although banking authorities in Europe are certainly not competent in religious issues and do not intend to replace the official Muslim scholars to take a position and interpret Shari’ah precepts, it is important that the banking and financial authorities become more familiar with the principles and practices specific to Islamic finance in order to make appropriate supervisory and regulatory judgments.
As early as 2005, the Banque centrale du Luxembourg was the host of an awareness programme co-organised in Luxembourg with the Islamic Financial Services Board. This was followed by various efforts, supported notably by the Luxembourg government, the fund administrators, the University in order to identify obstacles to solve and opportunities to enhance for the development of Islamic Finance in Luxembourg.