Reimagining Coco Bonds with Shariah based values
Based on a specified event a “Coco Bond” has a distinct attribute of being converted to equity. Hence they take a form of capital that support the institution in time of stress and satisfy regulatory capital requirements. For Islamic banks to meet regulatory requirements of Basel Accord, Sukuk products currently seem to be the most viable and plausible to deal with capital requirements. Read more about this instrument and what options does Shariyah provide here.Fiqh, Gharar, Mufti, Riba, Shariah, Shariah advisor, Shariah compliant, Sukuk, Sunnah
Hashim Munir
| June 24, 2019