Islamic Financial Services Board IFSB At a Glance
Islamic Financial Services Board IFSB At a Glance Walid lid Ahmad AlZ lZahrani Assistant Secretary-General, IFSB
QUICK GLANCE… • IFSB November 2002 was established in and started operations in March 2003 . • The IFSB is an International standard-setting body for prudential regulation to ensure the soundness and stability of the Islamic financial services industry, covering Islamic banking, Islamic capital market and Takāful sectors. 2003 2002 2015 SPECIFICITIES OF ISLAMIC 2008 2017 FINANCE 2019 1
IF IFSB MEMBERSHIP 79 RSAs 95 Market Players From 9 in 2003 to 182 8 members as of April 2019 Inter-governmental IFSB MEMBERS NUMBER OF MEMBERS 35 37 110 8 INTER- Full Associate Observer GOVERNMENTAL ORGANISATIONS MEMBERSHIP TYPE 2
OUR STRATEGIC FOCUS ARE REAS SKRA 1: Formulation and Issuance of Prudential Standards, Research and Statistics SPP SKRA 3: Increasing Value in the IFSB Membership, Global Visibility and Attractiveness 01 02 03 04 Advancing the IFSB SKRA SKRA SKRA SKRA Operations to Address Evolving Global SKRA 2: Facilitating the OC5 Implementation Challenges Standards Implementation of Prudential Global Resources Development Visibility Management Standards and Capacity Development SKRA 4: Efficient Management of Resources ACCOUNTABILITY COLLABORATION CORE VALUES SKRA INTEGRITY RESPONSIVENESS 3
PUBLISHED PRU RUDENTIAL STANDARDS 2 Standards 3 Standards Conduct of Business and Shariah Governance Governance, Disclosure Requirements and Core Principles 6 Standards Governance, Risk Risk Management, Capital 19 Standards Management, Solvency, Adequacy, Liquidity Retakaful and Supervisory Management, Corporate Review Process Governance, Supervisory Review Process, Core Principles, Stress Testing, Transparency and Market Discipline 4
ROLE OF F IF IFSB STANDARDS Global Regulatory Standards for the Institutions offering Islamic Financial Services (IIFS) The IFSB Standards fill crucial gaps for the Islamic Financial Services Industry… Specific Disclosures for Regulations that deal IIFS with specific risks & regulatory …..to ensure that regulatory frameworks considerations for Regulations to Islamic Banks (e.g. reflect the adequately address the specificities and Regulations to PSIAs, DCR, CAR, specificities in address specificities Stress testing, financial unique features related to Islamic the ICM (Ṣukūk, of Takaful safety nets etc.) ICIS, Islamic finance… (separation of equities & funds, Qard, surplus, market supervision, intermediaries) governance etc.) Sharīʻah - ….which are complementary to and fits governance within the existing international regulatory frameworks for the financial services industry Core Principles for Islamic Finance Regulation Preconditions for Islamic Finance Regulation 5
NE NEW STANDARDS UNDER DE DEVELOPMENT 2019 Standards & GN 2020 1. Technical Note on Financial Inclusion and Islamic Finance 2021 Standards & GN 2. Core Principles for Effective Islamic Deposit Insurance Systems 1. Revised Capital Adequacy Standards & TN Standard Sharīʿah - 3. Guidance Note on compliant Lender of Last 1. Core Principles for Islamic 2. Investor Protection for Resort Finance Regulation - Islamic Capital Markets Takaful 2. Recovery and Resolution 3. Transparency and Planning for Institutions Disclosure for Takaful / offering Islamic Financial Retakaful Undertakings Services 6
RESEARCH PAPERS RE Newly launched 1. Profit Sharing Investment Account: Cross- country analysis 2. FinTech, RegTech, SupTech and Islamic Finance 3. Effectiveness of Macro-prudential Tools in 2019 Islamic Finance 4. Prudential and Regulatory Issues Arising from Takaful Window Operations 5. Risk-Based Suervision in Islamic Banking Published 2019 2019 1. Investigating Inter-Sectoral Linkages in the Islamic Financial RESEARCH Services Industry Ongoing research 2. Risk Sharing Instruments in 1. Anti-Money Laundering / Counter Terrorism Islamic Banking Financing and Islamic Banking (Approved for Members’ Consultations) 2. Islamic Capital Market Intermediaries 3. Issues in the Regulation and Supervision of Shari’ah Compliant Hedging Instruments 7
IM IMPLEMENTATION ACT CTIV IVITIES Other Implementation Policy Advice Activities Annual Implementation Technical Assistance FIS Workshops Survey Facilitating knowledge- Country level FIS sharing among the workshops and IFSB members and annual regional capacity building at workshops for specific RSAs FIS Workshops RSAs Standards 2007 to date Implementation Strategy 40 FIS Outreach Countries E-Learning Programmes Modules Number of 110 Participation in Online platform to Workshops other organisations’ increase understanding events with focus Number of of the IFSB Standards. 4,124 on the IFSB Participants Includes16 Modules on Standards key IFSB Standards Standards Translation 8
NEW IM IMPLEMENTATION IN INIT ITIATIVES Impact and Consistency Assessment Programme (ICAP) Frequently Asked Question (FAQs) 1 2 IFSB’s Standards translations 3 Training of Trainers (ToT) 4 Country Assessments, Peer Reviews, Self-Assessments Annual Country Analysis 5 Implementation Survey 6 9
THE PSI SIFIs DATABASE Facilitate the monitoring and analysis of the soundness and stability of the IFSI Category Countries Indonesia Saudi Arabia G-20 Turkey Expansion to ICM United Kingdom and TAKAFUL Sector Bangladesh Brunei Emerging & developing Iran Separate data for full Asia Malaysia Aggregate Sectoral fledged banks and Pakistan Data from RSAs Islamic windows Afghanistan Central Asia Kazakhstan Bahrain Iraq Jordan Kuwait 35 Indicators Quarterly Data Oman THE PSIFIs Middle East U.A.E Prudential and Structural Indicators DATABASE Palestine Qatar Lebanon Libya Egypt Africa Nigeria Sudan 10
GL GLOBAL ISL ISLAMIC FI FINANCE SE SERVICES IN INDUSTRY (IF (IFSI) ASSETS The global IFSI maintained its positive growth by 6.9% growth ( y-o-y) with the IFSI’s total worth estimated at USD 2.19 trillion (2Q18). The relative decline in growth rate compared to 2017 was due to currency depreciation in a number of jurisdictions from 2017 to Q318. US$2.19 Trillion US$2.05 Trillion Breakdown of the Global IFSI by Sector 24.2 2.8 1.3 6.9% 71.7 2017 2018 Sukuk Islamic Funds Takaful Islamic Banking *Data for sukūk outstanding and Islamic funds are for full-year 2018. The data for Islamic banking are as at the end of June 2018 (1H18); 11 and for takāful are as at end-2017.
SYSTEMIC IM IMPORTANCE OF F ISL ISLAMIC FI FINANCE Islamic Banking Share in Total Banking Assets by Jurisdiction (1H2018) Shares of Global Islamic Banking Assets* (1H2018) Pakistan Egypt 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1.3% Bahrain Oman 0.6% Brunei Iran Sudan 1.7% 0.7% Sudan 0.5% Brunei 0.7% Jordan Saudi Arabia Kuwait 0.7% Indonesia Others Malaysia Qatar 1.7% 1.9% Countries in dark blue coloured bars are those UAE Bangladesh Bangladesh with at least 15% share of Islamic banking assets Djibouti 2.1% Jordan as a proportion to total domestic banking sector Turkey Palestine assets. These are categorised as systemically 2.6% Bahrain Pakistan important jurisdictions, Qatar Oman Afghanistan 6.2% Maldives Iran Islamic banking now present in over 60 countries, Indonesia 32.1% Kuwait Iraq systemically important in 12 jurisdictions Tunisia 6.3% Turkey Recorded further deepening in many jurisdictions Malaysia Senegal Egypt 10.8% Bosnia &… Algeria Saudi Arabia UAE Kyrgyz… 20.2% Kenya 9.8% Sri Lanka Tanzania Lebanon Thailand Nigeria South Africa Kazakhstan UK Top five jurisdictions based in share if global Islamic Mauritius banking assets are : Iran 32.1% (2Q1710.8 34.4%) Saudi Arabia 20.2% (2Q17: 20.4%), Malaysia % (2Q17: 9.1%), UAE 9.8% (2Q17: 9.3%) and Kuwait 6.3% (2Q17: 6.0%) 12
STRATEGIC COLLABORATIONS Collaboration MOU MOU MOU Collaboration MOU MOU MOU 13
Contact Us Head of He of Com Communications an and He Head of of Membership Affairs Awar areness Programmes Ahmed Ba Barakat Nir irvana Jalil Jalil Ghani Mem embership@ifsb.org ifsb_ b_sec@if ifsb.or org For or Im Implementation an and FIS FIS Wor orkshops Esa sam Osa sama Al-Aghbari Imp Implementatio ion@ifsb.o .org 14
Thank You www.ifsb.org
Recommend
More recommend
