4th IFSB Summit discusses challenges and efforts towards standardisation and convergence of global Islamic financial industry

16 May 2007, Dubai, UAE – Dubai played host to ten governors of central banks and top executives of securities and insurance regulators in the 4th Islamic Financial Services Board Summit held on 15th and 16th May at Grand Hyatt. The Summit discussed challenges and efforts towards the standardisation and convergence of the global Islamic financial services industry. The Summit is hosted by the Central Bank of UAE.

The ten governors, from Bahrain, Brunei, Indonesia, Jordan, Luxembourg, Malaysia, Qatar, Sweden, Pakistan and UAE were joined by 15 other distinguished speakers including Rodrigo de Rato, Managing Director of the International Monetary Fund, Jenny Shipley, the Former Prime Minister of New Zealand and chairmen of securities and insurance regulators.

Along with the governors, the Deputy Managing Director of Monetary Authority of Singapore, Chairman of Malaysian Securities Commission, Vice Chairman and Director General of the Jordan Insurance Commission and CEO of the Dubai Financial Services Authority, spoke on theme “Cross-Sectoral Approach to the Supervision of Islamic Financial Services” from a regulators viewpoint displaying varying approaches taken towards supervision of Islamic financial institutions including banks, securities and insurance providers within their respective jurisdictions.

Meanwhile, the Dirk Witteveen, Chairman of the Joint Forum, Philippe Richard, Secretary General of the International Organisation of Securities Commissions, William Coen, Deputy Secretary General of the Bank for International Settlements, Jaime Caruana, Counsellor of the International moentary Fund and Professor Simon Archer of Surrey University provided the standard-setters input which brought forth issues of more macro nature. John Weguelin, Managing Director of the European Islamic Investment Bank shared the perspective of the cross-sectoral approach on market players.

The Summit concluded that adapting a more dynamic and flexible approach to supervision of Islamic financial institutions is essential in moving the industry forward. A cross-sectoral approach to the supervision of Islamic financial services is seen as an alternative, even necessary, as the industry moves towards greater convergence. This is also exemplified by the cross-border operations of the increasing number of institutions offering Islamic financial services.

The Summit also concluded that a common vision and greater coordination and collaborative efforts among the different industry segments are essential towards maintaining the industry’s sound and stable growth.

The Secretary General of the IFSB, Professor Rifaat Ahmed Abdel Karim said, as an international organization with the mandate to assist the development of the industry, the IFSB, with the Islamic Development Bank and the Islamic research and Training Institute has recently launched the Ten Year Framework and Strategies for the Development of the Islamic Financial Services Industry. This document is hoped to provide a common direction for the industry’s development in the next ten years.

The Islamic Financial Services Board (IFSB) , which is based in Kuala Lumpur, was officially inaugurated on 3rd November 2002 and started operations on 10th March 2003. It serves as an international-standard setting body of regulatory and supervisory agencies that have vested interest in ensuring the soundness and stability of the Islamic financial services industry, which is defined broadly to include banking, capital market and insurance. In advancing this mission, the IFSB promotes the development of a prudent and transparent Islamic financial services industry through introducing new, or adapting existing international standards consistent with Islamic Shari'ah principles, and recommend them for adoption. To this end, the work of the IFSB complements that of the Basel Committee on Banking Supervision, International Organization of Securities Commissions and the International Association of Insurance Supervisors.

The 125 members of the IFSB include 33 regulatory and supervisory authorities as well as International Monetary Fund, World Bank, Bank for International Settlements, Islamic Development Bank, Asian Development Bank, and 87 financial institutions operating in 22 jurisdictions.

Malaysia, the host country of the IFSB, has enacted a law known as the Islamic Financial Services Board Act 2002, which gives the IFSB the immunities and privileges that are usually granted to international organisations and diplomatic missions.

Siham Ismail
email: siham@ifsb.org
www.ifsb.org

This release was published on openPR.