Kuala Lumpur, 20 April 2017
The IFSB then Secretary-General, Mr. Jaseem Ahmed emphasised the significance of mutual collaboration among all stakeholders for sustained growth of the Islamic financial services industry (IFSI), highlighting the forward agenda of the industry, particularly in areas of capacity development, integration into the governments’ policy-making agenda, risk management issues as well as tax, legal and regulatory issues, among others. Speaking at the IFSB’s Members and Industry Engagement Session, held on 5 April 2017, he addressed the IFSB’s role in the context of this forward agenda with respect to the implementation of the IFSB’s Strategic Performance Plan 2016-18 that helps to align the IFSB activities with the needs of IFSI and the post-crisis global regulatory architecture. Mr. Ahmed retired as the IFSB Secretary-General on 14 April 2017.
In his presentation titled, “The Global Islamic Financial Industry and the IFSB”, Jaseem reflected on the IFSB’s performance and achievements over the past decade, noting especially, the work done on the IFSB’s pre-eminent mandate to issue a range of cross-sectoral standards that aim to provide a consistent and robust regulatory framework across jurisdictions; the sustained efforts to assist implementation of IFSB Standards, which he noted is a big part of the future work of the IFSB; the launch of Core Principles for Islamic Finance Regulation (IFSB-17), and the dissemination of Soundness Indicators amongst important developments.
In his presentation, he also revealed that the implementation of the IFSB Standards has been increasing, particularly the new generation of IFSB standards issued post crisis, which have notably had higher take-up rates since their issuance. He also underlined some of the important initiatives of the IFSB including the E-learning platform, as well as the IFSB’s annual flagship publication, the Islamic Financial Services Industry Stability Report – the latest issue of which is targeted for release in May 2017. The Stability Report will look at stability and resilience aspects of various sectors in Islamic finance, as well as emerging issues related to Fintech and stress testing in Islamic banks.
He further highlighted the role of the IFSB in the context of global regulatory reforms, noting that the IFSB Standards are designed to support the orderly development of a rapidly growing industry within a national context, with standards that are benchmarked against those issued by Basel, IOSCO and IAIS, and with the specificities of Islamic finance in mind. He noted that one of the major activities undertaken by the IFSB was to rapidly adapt and issue new standards in the aftermath of the global financial crisis, adopting the newly emerging thinking on what the financial stability framework should look like.
The IFSB Members and Industry Engagement Session was held on 5 April 2017 in Kuala Lumpur, Malaysia, in conjunction with the IFSB Annual Meetings and Side Events 2017, co-hosted by the Central Bank of the Islamic Republic of Iran and hosted by Bank Negara Malaysia. It was attended by participants including four central bank Governors and Deputy Governors of regulatory and supervisory authorities (RSAs) as well as senior representatives from among the IFSB members and the Malaysian local financial community.
The opening remarks were delivered by Daud Vicary, President and Chief Executive Officer of the International Centre for Education in Islamic Finance (INCEIF), who shared his involvement in the work of the IFSB since its establishment in 2003. He commended the IFSB’s accomplishments and contributions towards the global Islamic finance industry.
About the Islamic Financial Services Board (IFSB)
The IFSB is an international standard-setting organisation that promotes and enhances the soundness and stability of the Islamic financial services industry by issuing global prudential standards and guiding principles for the industry, broadly defined to include banking, capital markets and insurance sectors. The IFSB also conducts research and coordinates initiatives on industry-related issues, as well as organises roundtables, seminars and conferences for regulators and industry stakeholders. Towards this end, the IFSB works closely with relevant international, regional and national organisations, research/educational institutions and market players.
The IFSB comprises 183 members in 57 jurisdictions, representing regulatory and supervisory authorities, international inter-governmental organisations and market players, professional firms and industry associations.
For more information about the IFSB, please visit www.ifsb.org.
© Press Release 2017
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