Islamic board to issue new guidelines
Kuala Lumpur, May 14, 2014
The Islamic Financial Services Board (IFSB) will release an updated 10-year industry roadmap next week as it places greater emphasis on the implementation of its standards with regulators around the globe.
Guidelines from Kuala Lumpur-based IFSB, one of the main standard-setting bodies for Islamic finance, are gaining prominence as the industry takes a greater share of the banking sector in some Muslim-majority countries and makes inroads in western markets.
The IFSB will release a Mid-Term Review (MTR) of the industry's 10-year framework document on May 19, outlining benchmarks to monitor industry progress in a more focused way, IFSB secretary-general Jaseem Ahmed said.
The original framework, released in 2007 by the IFSB and the research arm of the Jeddah-based Islamic Development Bank, identified 16 recommendations for policymakers but did not spell out detailed metrics to track their progress.
"The MTR proposes a stronger implementation plan. This plan includes concrete initiatives - to be undertaken by a range of stakeholders - to bring the recommendations to life."
Founded in 2002, the IFSB's initial efforts have focused on winning a wide membership base, leaving implementation and enforcement to national regulators to decide, a decision driven in part by their diverse legal and regulatory backgrounds.
Now, however, the 184-member IFSB hopes to draw up more concrete steps for regulators while still leaving some flexibility given the wide range of industry development.-Reuters