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 Bank | CrediMax |
Bangladesh Securities and Exchange Commission | Arab Bank |
Brunei Darussalam Central Bank | The Arab Investment Company (TAIC) |
Securities and Exchange Commission Ghana | Venture Capital Bank |
Otoritas Jasa Keuangan (OJK) | Ithmaar Bank |
Central Bank of Iraq | CIBAFI |
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 | ICSFS |
Capital Markets Authority - Lebanon | Jordan Islamic Bank |
Central Bank of Libya | First Community Bank |
Bank Negara Malaysia | Kuwait Finance House |
Capital Markets Development Authority | Warba Bank |
Bank of Mauritius | Blom Development Bank |
Bank Al Maghrib | Azentio Software |
Securities and Exchange Commission Nigeria | CIMB Islamic Bank Berhad |
Central Bank of Oman | INCEIF |
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 | Cham Bank |
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 | Standard Chartered |
Capital Markets and Securities Authority | Emirates Islamic Bank |
Conseil du marché financier - Tunisia | HSBC Bank Middle East Limited |
Capital Markets Board of Turkey | DDCAP |
Insurance & Private Pension Regulation Supervision Agency | |
Dubai Financial Services Authority | |
Insurance Regulatory Authority of Uganda | |
Bank of Uganda |
-Ends-
About AAOIFI
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: rmalik@aaoifi.com
© Press Release 2022
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