​​​ As the Islamic Banking and Finance industry becomes mainstream it has had to incorporate global regulatory and banking requirements. The impending Basel III regulatory regime makes this process a key issue for the Islamic Finance and Banking Industry. Required: 1. Critically analyse the Basel III Accords and show how they differ from the Basel II Accords [15 Marks] 2. Critically assess the key challenges Islamic Banking and Financial institutions will face in complying with the Basel III requirements. [20 Marks] 3. Review the Islamic Financial Services Board (IFSB) Standards 16 and 17 and Guidance Note 6 and critically evaluate how far they help to address the challenges posed by Basel III Accords to Islamic Financial Institutions. [Look particularly at the suggested treatment of PSIA – Profit Sharing Investment Accounts – and other issues relating to Islamic Finance contracts.] [20 Marks] 4. Comment upon the liquidity challenges which Islamic financial institutions will face to meet the Liquidity Coverage Ratio (LCR) stipulated in the Basel III Accords. How are these being addressed? [15 Marks] 5. Review the Tier 1 Perpetual Sukuk issuances by Abu Dhabi Islamic Bank (ADIB) and others to meet the additional Core Tier 1 Capital requirements. Critically analyse the contribution these new instruments could make to the development of a genuine Shariah compliant "Bond" Class [15 Marks] 6. Make a critical assessment of whether compliance with Basel III will make Islamic Financial Institutions more competitive vis-à-vis their conventional counterparts. [15 Marks] Your work should show evidence of through reading and understanding of the plentiful resources provided on the appropriate module section on Blackboard for this course. Please also note that most marks will be awarded for critical analysis and not for verbatim paraphrasing of standards or guidelines.