STEP-BY-STEP INTRODUCTION OF ISLAMIC BANKING PRODUCTS AND THE “ISLAMIC WINDOW” MODEL
Keywords:
Islamic banking; Islamic window; Shariah governance; Murabaha; Ijarah; Mudarabah; Musharakah; regulatory sandbox; dual banking system; financial inclusion; prudential supervisionAbstract
this article examines the institutional, prudential, operational, and market prerequisites for the phased introduction of Islamic banking products and the Islamic window model within dual financial systems. The study systematizes contemporary international experience, evaluates the compatibility of Shariah-compliant instruments with existing banking infrastructures, and proposes a sequenced implementation framework that balances financial inclusion, regulatory proportionality, consumer protection, and systemic stability. The paper argues that a carefully staged Islamic window approach can serve as a lower-friction transition mechanism for emerging markets, particularly Uzbekistan, by enabling demand testing, governance standardization, and gradual ecosystem formation before full-fledged Islamic banking expansion.
Downloads
References
1. London Stock Exchange Group, & Islamic Corporation for the Development of the Private Sector. Islamic Finance Development Report 2025. LSEG.
2. London Stock Exchange Group, & Islamic Corporation for the Development of the Private Sector. Islamic Finance Development Report 2024. LSEG.
3. Islamic Financial Services Board. (n.d.). About the IFSB. IFSB.
4. Song, I., & Oosthuizen, C. Islamic banking regulation and supervision (IMF Working Paper No. 14/220). International Monetary Fund.
5. International Monetary Fund. (2018). The core principles for Islamic finance regulation and assessment methodology. IMF Policy Paper.
6. Islamic Financial Services Board. IFSB-30: Revised guiding principles on corporate governance for institutions offering Islamic financial services (banking segment). IFSB.
7. Bank Negara Malaysia. (2024, November 11). Islamic Banking Window Policy Document. Bank Negara Malaysia.
8. Central Bank of the Republic of Uzbekistan. Annual report 2024. CBU.
9. Central Bank of the Republic of Uzbekistan. Regulation on the procedure for providing Islamic finance services by microfinance institutions (Registration No. 3536, July 26, 2024).
10. PwC Uzbekistan. Uzbekistan investment guide 2025. PwC Uzbekistan.
11. Eurasian Development Bank. The future of Islamic finance in Central Asia. EDB.
12. Accounting and Auditing Organization for Islamic Financial Institutions. AAOIFI standards and Shari’ah standards. AAOIFI.
