Manama, Kingdom of Bahrain: Accounting and Auditing Organisations for Islamic Financial Institutions (AAOIFI) in collaboration with Islamic Financial Services Board (IFSB) and International Islamic Financial Markets (IIFM) held the inaugural roundtable on alternative Islamic benchmark rates on 18 January 2022, virtually. The theme of the roundtable was: “Issues and challenges for Islamic finance in adopting alternative benchmark rates and finding an Islamic benchmark rate”.
The roundtable was attended by over 250 participants from 45 regulatory and supervisory authorities (RSAs), and a large number of participants from Islamic financial institutions (IFIs) and other institutions from around the globe.
This roundtable was a part of a series of roundtables, which aimed to discuss and deliberate on this subject and its implications on the Islamic finance industry from Shari’ah, regulatory, legal, accounting and governance perspectives.
The event was chaired by Mr. Farrukh Raza, the Chairman of the AAOIFI Governance and Ethics Board (AGEB) and Group CEO of IFAAS and Co-Founder of IFIN. The welcome address was delivered by Dr. Bello Lawal Danbatta, Secretary General of IFSB, while the keynote speech was delivered by Mr. Khalid Hamad Al Hamad, Executive Director, Banking Supervision, Central Bank of Bahrain.
The agenda of the roundtable comprised of five sessions, the first session was on identifying legal issues in adopting alternative benchmark rate, which was presented by Mr. Ijlal Alvi, CEO of IIFM.
His Eminence Sh. Mufti Taqi Usmani, Chairman, AAOIFI Shari’ah Board shared insights on Shari’ah aspects of adopting alternative benchmark rate and reemphasized the need for Islamic finance industry to have its own Islamic alternative benchmark rates. Dr. Osaid Kailani, member, AAOIFI Shari’ah Board also shared his views and experiences on existing practices within the industry with regards to the alternative rate and stated that the ideal economic parameters based alternate benchmark model may have some practical challenges but that should not stop us in developing solutions.
Dr. Ishrat Husain, former Governor of State Bank of Pakistan shed light on the regulatory aspects and challenges of transition and adoption of alternative benchmark rates.
Dr. Kabir Hasan, member of AAOIFI Governance and Ethics Board (AGEB) shared the proposed models and approach towards development of standard on Islamic benchmark rate taken by AAOIFI. Dr. Syed Salman Ali, lead research economist at Islamic Development Bank Institute also shared a presentation on alternative models of developing an alternate benchmark rate for the industry.
The participants actively participated in the discussions and raised pertinent questions for clarifications, as well as, provided expert feedback on various areas under discussion.
Mr. Omar Mustafa Ansari, Secretary General, AAOIFI, expressed his appreciation to IFSB and IIFM, the speakers and participants for joining the inaugural roundtable. He stated that “We are pleased to welcome for the first time 45 RSAs at this inaugural roundtable, as well as, a large number of AAOIFI members and other stakeholders, who actively participated in the discussions and shared a wealth of knowledge.” Additionally, Mr. Ansari also thanked all the speakers and Shari’ah scholars for sharing their insights during the event.
List of institutions attended the roundtable
Names of the regulatory and supervisory institutions
Names of the banks and financial institutions
Da Afghanistan Bank
Bank ABC Islamic
Bank of Algeria
Bahrain Islamic Bank
Central Bank of Bahrain
Al Salam Bank - Bahrain
Bangladesh Securities and Exchange Commission
Brunei Darussalam Central Bank
The Arab Investment Company (TAIC)
Securities and Exchange Commission Ghana
Venture Capital Bank
Otoritas Jasa Keuangan (OJK)
Central Bank of Iraq
Capital Market Authority Kenya
Bank Islam Brunei Darussalam
Central Bank of Kuwait
Manzil Mortgage Services Inc.
National Bank of the Kyrgyz Republic
Jordan Islamic Bank
Service for Regulation and Supervision of Financial Markets
Capital Markets Authority - Lebanon
Jordan Islamic Bank
Central Bank of Libya
First Community Bank
Bank Negara Malaysia
Kuwait Finance House
Capital Markets Development Authority
Bank of Mauritius
Blom Development Bank
Bank Al Maghrib
Securities and Exchange Commission Nigeria
CIMB Islamic Bank Berhad
Central Bank of Oman
State Bank of Pakistan
Sohar International Bank
Securities and Exchange Commission of Pakistan
Palestine Islamic Bank
Palestine Monetary Authority
Saudi National Bank
Bangko Sentral ng Pilipinas
Banque Saudi Fransi
The Philippine Insurance Commission
Bank Al Bilad
Qatar Central Bank
Bank of Khartoum
Qatar Financial Centre Regulatory Authority
Saudi Organization for Certified Public Accountants (SOCPA)
Al Baraka Bank - Syria
Saudi Central Bank
Syria International Islamic Bank
Capital Market Authority - Saudi
AlBarakaTurk Participation Bank
Banque Centrale Des Etats de L’afrique de L’ouest (BCEAO)
Participation Banks Association of Turkey
South African Reserve Bank
Crédit Agricole CIB
Financial Sector Conduct Authority
MUFG Bank, Ltd.
Central Bank of Sudan
HSBC Bank Middle East Limited
Central Bank of Syria
Dubai Islamic Bank
National Bank of Tajikistan
Capital Markets and Securities Authority
Emirates Islamic Bank
Conseil du marché financier - Tunisia
HSBC Bank Middle East Limited
Capital Markets Board of Turkey
Insurance & Private Pension Regulation Supervision Agency
Dubai Financial Services Authority
Insurance Regulatory Authority of Uganda
Bank of Uganda
AAOIFI, established in 1991, and based in the Kingdom of Bahrain, is the leading international not-for-profit organization primarily responsible for development and issuance of standards for the global Islamic finance industry.
AAOIFI is supported by over 146* active institutional members, including central banks and regulatory authorities, financial institutions, accounting and auditing firms, and legal firms, from over 45* countries.
It has 113* standards and technical pronouncements in issue in the areas of Shari’ah, accounting, auditing, ethics and governance for international Islamic finance. 43* regulatory and supervisory authorities (RSAs) in 36* countries around the globe adopt and / or recognise AAOIFI standards and technical pronouncements either fully, partially, as guidelines, as supplementary reporting or as a basis of development of local standards / regulations.
* As of December 2021
For more information on AAOIFI its activities, please contact:
Dr. Rizwan Malik, Head, Standards Implementation and Strategic Developments
AAOIFI, Office: +973 – 17375401; e-mail: firstname.lastname@example.org
© Press Release 2022
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