Mudaraba/Musharaka contracts transform the Islamic banks’ deposits into essentially a fund management product (although currently most regulators recognize these as equivalent to conventional deposit contracts) and this impacts the corresponding asset portfolio. There is a need therefore that Islamic banks acquire assets on a PLS basis as well and eventually move beyond fixed return products, like Murabaha and Ijara.
Since then, it was entrusted with an additional assignment: it now provides guidance to, and formally decides on, issues discussed by the various Basel-based central bank committees. This responsibility had been in the hands of G10 Governors for decades.