21 May 2015, Almaty - The Islamic Financial Services Board's (IFSB) 12th Summit, themed "Core Principles for Islamic Finance: Integrating with the Global Regulatory Framework", was officially launched yesterday by the Prime Minister of Kazakhstan, The Right Honourable Karim Massimov. This one and half day Summit, which is held on 20 and 21 May 2015 is hosted by the National Bank of Kazakhstan.

In his Keynote Address, The Right Honourable Karim Massimov, the Prime Minister of Kazakhstan, highlighted that Islamic finance is the most dynamic segment of global finance. Therefore, the Republic of Kazakhstan envisages directing this dynamism for the benefit of the country and the region. To reach this objective, he highlighted reforms that have been undertaken by the Government of Kazakhstan and the National Bank of Kazakhstan since 2009 in making the Republic of Kazakhstan a gateway for the penetration of Islamic finance to the CIS region. These include the establishment of the legal framework, the development of infrastructure for the Islamic finance industry, as well as efforts to enhance the level of awareness among the population. To support this initiative, the government of the Republic of Kazakhstan has approved the Roadmap of Development of Islamic Finance which extends until 2020.

H.E. Kairat Kelimbetov, Governor of the National Bank of Kazakhstan, in his Welcome Address, stated that the Islamic financial sector with its impressive growth rates may serve the economy of Kazakhstan as one of the main instruments for development. He added that there is currently a complete alternative to the traditional financial system in Kazakhstan, which allows for the provision of services in the field of Islamic banking, Takaful, Islamic leasing and funds, as well as issuance of Islamic bonds (Sukuk). H.E. Kelimbetov urged in his speech that the global Islamic financial industry should expand beyond the traditional borders of the Islamic world in order to continue its double digit growth. "Integration of Islamic finance with the global regulatory framework" he emphasised "is only possible by the joint efforts of all national regulatory authorities". He noted that "the main issue to understand is that a more integrated Islamic financial sector will lead to a healthier and more effective global financial system performance". H.E. Kelimbetov highlighted that the National Bank of Kazakhstan became a member of IFSB in 2011, and its participation allows it to receive support in facilitating the development of standards for Islamic financial institutions in Kazakhstan and consequently, allows the strengthening of Kazakhstan's position as a regional leader in the field of Islamic finance. 

Mr. Jaseem Ahmed, Secretary-General of the IFSB, mentioned that the theme of this year's Summit, "Core Principles for Islamic Finance: Integrating with the Global Regulatory Framework", provides an opportunity to address some of the key challenges and opportunities that face the Islamic finance and global community which are among others: how to strengthen the national regulatory and supervisory framework, in a way that is consistent across borders; how to facilitate the integration of Islamic finance into the global surveillance framework that monitors the stability of the global financial system; and how to strengthen international linkages in Islamic finance.

Mr. Ahmed also applauded various developments at the global level such as, the issuance of the recent Staff Discussion Note on Islamic finance by the IMF. Taking a note of "widespread interest in the use of Sukuk to fund investment in both social and physical infrastructure", he congratulated the World Bank for recent innovations in which they have assisted their stakeholders to structure Sukuk for the financing of health programmes for immunisation and vaccination of children. He also highlighted the role of Islamic finance in enhancing financial inclusion. "There is today a better understanding that the absence of Shariah-compliant financial instruments is a major impediment to the objective of financial inclusion in many countries" he reiterated. Concluding his speech, Mr. Ahmed shared key findings of the IFSB IFSI Stability Report 2015 and the role of IFSB Core Principles in assessing the quality of regulatory and supervisory systems and for identifying future work to achieve a baseline level of sound regulations and practices for Islamic finance. "I believe that the Core Principles for Islamic Finance Regulation will provide the basis for a globally consistent regulatory framework for Islamic finance." He further added that the IFSB Council had approved a pilot testing phase for the implementation of the new Core Principles standard.

The Islamic Financial Services Industry Stability Report 2015 was launched by H.E. Kairat Kelimbetov, Governor of the National Bank of Kazakhstan and Mr. Jaseem Ahmed, Secretary General of the IFSB in the same session.

The two-day Summit (20 and 21 May 2015) continued with sessions covering topics such as:

  • Global Overview of the Islamic Financial Services Industry (IFSI): Trends and Policy Developments

  • New Regulatory Developments and the Impact on the Islamic Financial Services Industry

  • Role of the Core Principles for Islamic Finance in Enhancing Regulatory Consistency and Resilience of the Industry

  • Enabling Framework for the Assessment of Regulatory and Supervisory Regimes

  • Panel Discussion on "The New Silk Road: The Importance of Regulatory Cooperation for Cross-Border Integration"

The Summit was attended by key Islamic financial services industry leaders, from among regulatory and supervisory authorities and financial institutions from among the IFSB member organisations, as well as the local Kazakhstan financial community.

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 members 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 2015