Grais, WafikPellegrini, Matteo2012-06-262012-06-262006-11https://hdl.handle.net/10986/9028This paper focuses on the corporate governance arrangements of institutions offering Islamic financial services (IIFS) aimed at protecting stakeholders' financial interests. Many IIFS corporate governance issues are common with those of their conventional counterparts. Others are distinctive. In particular they offer unrestricted investment accounts that share risks with shareholders but without a voting right. This paper first reviews internal and external arrangements put in place by IIFS to protect stakeholders' financial interests. It discusses shortcomings notably in terms of potential conflict of interest between shareholders and holders of unrestricted investment accounts. It then suggests a corporate governance framework that combines internal and external arrangements to provide safeguards to unrestricted investment account holders without overburdening IIFS' financial performance. The paper uses a review of 13 IIFS and regulatory information from countries where IIFS have developed the most.en-USCC BY 3.0 IGOACCOUNTINGACCOUNTING STANDARDSACQUISITIONASSETSAUDITINGAUDITORSBALANCE SHEETBANK GUARANTEESBANKING LAWBANKING SUPERVISIONBANKSBORROWINGCAPITAL ADEQUACYCAPITAL MARKETSCAPITAL REQUIREMENTSCENTRAL BANKSCONFLICT OF INTERESTCONTROLLING SHAREHOLDERSCORPORATE CONTROLCORPORATE GOVERNANCECORPORATE GOVERNANCE CODECORPORATE STRUCTURECORPORATE TAKEOVERSDEPOSITSDISCLOSUREDIVIDEND PAYMENTSDIVIDENDSEQUALIZATIONEXPROPRIATIONFEDERAL DEPOSIT INSURANCEFEDERAL DEPOSIT INSURANCE CORPORATIONFINANCIAL ACCOUNTINGFINANCIAL INDUSTRYFINANCIAL INFORMATIONFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL INTERMEDIARIESFINANCIAL INTERMEDIATIONFINANCIAL MARKETSFINANCIAL PERFORMANCEFINANCIAL REPORTINGFINANCIAL SERVICESFINANCIAL STATEMENTSFINANCIAL SYSTEMSFINANCIAL TRANSACTIONFRANCHISEFREE BANKINGGOLDEN SHARESHOSTILE TAKEOVERSINDEPENDENT DIRECTORSINSTITUTIONAL INFRASTRUCTUREINTERESTS OF MINORITY SHAREHOLDERSINTERNATIONAL BUSINESSESINVESTMENT DECISIONSINVESTMENT POOLSINVESTMENT PORTFOLIOINVESTMENT RISKINVESTMENT RISKSINVESTMENT SERVICESISLAMIC BANKISLAMIC BANKINGLAWSLEGISLATIONLEVEL PLAYING FIELDLIMITEDLIQUIDITYMANAGERSMANDATESMARKET DISCIPLINEMARKET INSTITUTIONSMARKET RISKMERGERMUTUAL FUNDSNON-BANKOPEN INTERESTOPERATIONAL RISKOWNERSHIP STRUCTUREPAYMENT SYSTEMSPRIVATE EQUITYPROFIT SHARINGPROFITABILITYPROTECTION OF MINORITY SHAREHOLDERSRATING AGENCIESREGULATORY AUTHORITIESREGULATORY FRAMEWORKREGULATORY INSTITUTIONSREGULATORY REGIMEREGULATORY SYSTEMSRESERVE BANK OF INDIARESERVE REQUIREMENTRETAINED EARNINGSRISK MANAGEMENTRISK SHARINGSAVINGSSAVINGS ACCOUNTSSECURITIESSECURITIES REGULATIONSECURITIES REGULATORSEPARATION OF OWNERSHIPSEPARATION OF OWNERSHIP FROM CONTROLSHAREHOLDERSHAREHOLDERSSOCIAL SERVICESSPECIFIC INVESTMENTSSTAKEHOLDERSTAKEHOLDER PROTECTIONSTAKEHOLDERSSTATEMENTSTOCK OPTIONSSTOCKHOLDERSSYSTEMIC BANKING CRISESTAKEOVERTAXATIONTRANSPARENCYVOTING SHARESWorld Bank10.1596/1813-9450-4053