In this Article, due to the nature of investment deposits, modes of financing, and risk profiles are different from those of conventional banks as a result of the need to comply with the Sharī‘ah, we want to addresse primarily the crucial question of how to apply the international regulatory standards to Islamic banks and whether the existing international standards of best practices are adequate or whether anything more is also needed in view of the relatively different risk (risk management) perspective of these institutions. Finally, the paper reviews the standards set by the Basel Committee for Banking Supervision (BCBS). It finds the three pillars of the new Basel framework, namely capital adequacy, supervisory review process, and market discipline to be equally relevant to Islamic banks.