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Islamic finance: what concrete steps is Italy taking?

Gabriella Opromolla (Partner with Franchini Studio Legale, Milan, Italy)

Journal of Investment Compliance

ISSN: 1528-5812

Article publication date: 6 April 2012

Abstract

Purpose

The purpose of this paper is to analyze the compatibility of Islamic banking with the Italian banking system, to report what Italian legislators are currently doing to accommodate Islamic finance in the Italian banking system, and to explore solutions to the obstacles that have been identified.

Design/methodology/approach

The paper provides background on the Italian banking system as it works within the European Union (EU); shows some analogies between ethical and Islamic banking; traces the development of Islamic finance; explains the principles of Islamic finance and their impact on common transactions; describes the development of the Islamic finance industry; and analyzes the compatibility of Islamic finance with the Italian banking system.

Findings

Although Italy offers a fertile and flexible legal environment, dedicated banking laws and regulations and, consequently, Islamic banks have not yet been established in Italy. Further research is needed on how to reconcile Islamic banking with EU regulations and the Italian banking system.

Originality/value

The paper presents practical analysis from an experienced Italian financial services lawyer.

Keywords

Citation

Opromolla, G. (2012), "Islamic finance: what concrete steps is Italy taking?", Journal of Investment Compliance, Vol. 13 No. 1, pp. 10-16. https://doi.org/10.1108/15285811211216646

Publisher

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Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited