Hdeel Abdelhady proposed consumer-oriented insolvency risk allocation in Islamic profit sharing investment accounts
Hdeel Abdelhady discussed a consumer-oriented insolvency risk allocation model for Islamic banking, particularly the Islamic retail profit sharing investment accounts, in Butterworths Journal of International Financial and Banking Law.
Abstract
This article discusses the Profit Sharing Investment Account (PSIA), an investment product that entails capital loss and is offered by Islamic banks to retail and wholesale consumers. Specifically, the PSIA’s features, related management practices, and the rights of retail bank consumers at bank insolvency are addressed, concluding with a proposal for a consumer-oriented statutory approach to PSIA customer claims in the event of bank insolvency or other financial distress worthy of regulatory intervention. The discussion of PSIA-related practices and
the state of Islamic banking regulation provide a composite picture – no specific jurisdictions or institutions are discussed.
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Hdeel Abdelhady is MassPoint PLLC’s principal. Read the full article here.