Abstract
Several regulatory frameworks are available in the literature for the adoption of Islamic banking and financing options (IBFOs) in other countries. However, there is limited literature providing a regulatory framework for the adoptability of IBFOs in a Pacific Island nation such as Fiji. A study on Fiji is important because it is a developing island nation with a multi-religious population and currently only offers conventional financing. Furthermore, Micro, Small and Medium Enterprises (MSMEs) continue to experience financing challenges. Therefore, the purpose of this study is to suggest a regulatory framework to guide and support the adoption of IBFOs for financing of MSMEs in Fiji. This study adopts an integrative literature review incorporating comparative, descriptive, and critical review techniques. The findings reveal that IBFOs can be accommodated within Fiji’s existing legal and institutional framework through the inclusion and adaptation of key legislative and institutional instruments. However, revisions to existing legislation, the introduction of new legislation, the establishment of statutory bodies, and the creation of a specialized court or tribunal may be required. This study concludes that IBFOs do not need to rely on an entirely separate legal regime. Instead, they can be integrated within an existing conventional regulatory framework, provided that the recommended reforms are implemented. The proposed framework may also inform other countries seeking to introduce or strengthen the adoption of IBFOs, since it is grounded in a comparative analysis of international regulatory frameworks.
Keywords: Fiji, Integrative Literature Review, Islamic Banking and Financing Options, Regulatory Framework.