Legal accommodation of Islamic banking in Bosnia and Herzegovina: stretching the existing legal framework in the European context

Reflects on the challenges which Islamic banking faces in Bosnia and Herzegovina. Examines key features of banking sector regulation under the Law on Banks of the Federation of Bosnia and Herzegovina 1997, proposed reforms to make the Law more accommodating to Islamic banks, and the opposition to such reforms by organisations including the Federal Banking Agency. Reviews the EU approach to Islamic finance, how Islamic banking might be developed in the EU context, and whether such banks meet the definition of "credit institutions" under Directive 2006/48.