Manama, Kingdom of Bahrain – The Board of Directors of the International Islamic Financial Market (IIFM) held its forty-fourth (44th) meeting virtually to discuss the standard-setting body’s various industry development initiatives, focus on emerging global developments and approval of administrative matters.
The Chairman of IIFM Mr. Khalid Hamad Al Hamad led the meeting proceedings which was attended by the Directors on IIFM Board namely Mr. Nik Mohamed Din Bin Nik Musa (Labuan Financial Services Authority, Malaysia), Dr. Mansur Noibi (Islamic Development Bank), Mr. Shukri Ahmad (Brunei Darussalam Central Bank), Mr. Irfan Sukarna (Bank Indonesia), Mr. Abubaker Mohamed (Central Bank of Sudan), Mr. Lilian Le Falher (Kuwait Finance House-Bahrain), Dr. Adnan Chilwan (Dubai Islamic Bank), Mr. Hammad Hassan (Bank ABC Islamic), Mr. Khurram Hilal (Standard Chartered Saadiq) and Mr. Salah Sharif (GFH Financial Group).
The Board of Directors welcomed Mr. Nik Mohamed Din Bin Nik Musa, Director General of Labuan FSA, as the new board member representing Labuan FSA and congratulated him on his appointment as the new Vice Chairman of IIFM.
The Board extended its appreciation to long serving Director on IIFM Board and outgoing Vice Chairman of IIFM, Datuk Danial Mah Abdullah (former Director General of Labuan FSA) for his leadership support and services to IIFM since its inception.
The Board of Directors discussed IIFM’s ongoing standardization initiatives which are positively supporting the systematic and robust expansion of the Islamic finance industry. The Directors also discussed the Environmental, Social & Governance (ESG) related developments globally and the role IIFM may play in this area.
Mr. Khalid Hamad Al Hamad, Chairman of IIFM said, “The G7 countries recent communique to enforce climate change related goals will have severe consequences particularly on OIC countries’ financial stability and the Islamic finance industry should start preparation to mitigate the ESG related risk and develop transition related solutions towards low-carbon economy”. He also added that IIFM needs to create awareness in the industry and initiate assessment work as per its practically oriented approach.
The Board also reviewed IIFM ongoing initiatives concerning Global Benchmark Rate Reforms and transition to Risk Free Rates (RFR’s) and approved the initiatives recommended by the IIFM Financing and Hedging Working Groups.
Despite the continuation of unprecedented situation caused by the COVID 19 pandemic, IIFM attuned workflow resulted in the timely publication of ‘IIFM Template Sukuk Al Mudarabah Standard Documentation’ for Tier 1 issuances and released the industry’s first White Paper on ‘Global Benchmark Rate Reforms and Implications of IBOR Transition on Islamic Finance’. IIFM also held numerous virtual working group meetings, webinar on launch of Sukuk Al Mudarabah Standard and a joint webinar on Islamic hedging for the Malaysian market during first half of 2021.
Mr. Ijlal Ahmed Alvi, Chief Executive of IIFM said, “IIFM’s initiatives are always directed towards raising awareness on Islamic financial market requirements such as hedging and alternative to repo as well as taking a leading role in global financial market developments such as transformation to RFR’s”. He also added, “IIFM Standards offer practical Shari’ah-compliant solutions to support the progression of the industry which provide immense benefits to market participants”.
During third quarter of 2021, IIFM jointly with Dar Al Sharia will begin offering practically oriented capacity building training to professionals on its published Standards and the 10th Edition of the annual IIFM Sukuk Report will also be published through a webinar event.
In the second half of 2021, IIFM plans to hold an industry-wide consultation meeting on standardization of ‘Islamic Syndication documentation’, assessment exercise for which had already been underway at IIFM.
IIFM will also continue to assess standardization of additional liquidity management products in consultation with the industry.
The audited IIFM accounts for the year 2020 prepared by Deloitte & Touche-Middle East were approved by the Board.
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About International Islamic Financial Market (IIFM)
IIFM is a global standard-setting body of the Islamic Financial Services Industry (IFSI) focusing on standardization of Shari’ah-compliant financial contracts and product templates.
IIFM is hosted by the Central Bank of Bahrain (CBB) and was established under Royal Decree No (23) Year 2002 of the Kingdom of Bahrain as a neutral and non-profit international Islamic infrastructure development institution, by the collective efforts of the CBB (formerly Bahrain Monetary Agency), Islamic Development Bank, Bank Indonesia, Bank Negara Malaysia (delegated to Labuan Financial Services Authority), Central Bank of Sudan and Brunei Darussalam Central Bank (formerly Autoriti Monetari Brunei Darussalam).
Besides the Founding and Permanent Members, IIFM Board of Directors consist of Islamic and international banks namely Kuwait Finance House, Dubai Islamic Bank, Saudi National Bank, Bank ABC Islamic, Gulf Finance House, Standard Chartered, Credit Agricole CIB and National Bank of Kuwait.
IIFM is also supported by certain regulatory and government bodies such as State Bank of Pakistan, National Bank of Kazakhstan and DIFC Authority as well as by a number of international and regional financial institutions and other market players active in Islamic finance.
Information on IIFM and its activities is available on www.iifm.net
Media Contact:
Mr. Usman M. Naseer, Senior Officer-Business Development, IIFM
Office No: +973 17 500161; Email: usman.naseer@iifm.net
© Press Release 2021
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