The reports of a reform of capital adequacy regulation of Islamic banks are greatly exaggerated

Due to the beginning of an experiment in the area of partnership (Islamic) financing in Russia the relied theme has attracted growing attention in the public domain, including the academia. Unfortunately, insufficiently deep knowledge about the subject may play a trick on some authors. What results are conclusions that are disputable, to say the least. This is the case with the publication in question on the topic of an alleged reform of the regulation of capital adequacy of Islamic banks. Accordingly, there is a need to launch a debate about both the particular arguments and the very problem at the core of the said publication. This paper demonstrates why many premises the coauthors base their reasoning upon are inaccurate, which has led to an erroneous hypothesis, on the one hand, and to the fact that results of econometric exercise could not show a causal relationship between the improved attitude of investors towards Islamic banks, and the “reform” — for the absence of one.