In most of the countries where conventional banks operate alongside Islamic banks, the same regulatory and supervisory standard is being applied to the extent possible. So far the tendency has been to apply the standard set by the Basel Committee on Banking Supervision.
In addition to taking responsibility for firm-specific strategies and risk management, it is essential that bank directors also understand the macroeconomic environment: after all, the primary driver of the aggregate performance of the banking sector will be the overall state of the economy.