www.ifsb.org -Islamic Financial Services Industry Helpıng to Enhance the Resilience and Stability of the Global Financial System
Istanbul, 16 May 2012 – The intrinsic
strengths of Islamic financial services industry, if fully explored,
could help build a robust, resilient and just financial system that not
only supports growth and economic activity but also ascertains a more
inclusive financial system. This was among the discussions made by the
distinguished speakers at the Opening and Keynote Session of the 9th
IFSB Summit that commenced in the Istanbul, Turkey today. The 2-day
IFSB Summit themed as “Global Financial Reforms: The Changing Regulatory
Model and Islamic Finance” is being hosted by the Central Bank of the
Republic of Turkey and is being attended by more than 200 delegates
across the globe comprising of officials and representatives from
international institutions, supervisory bodies, market players,
academia, rating agencies and other stakeholders of Islamic financial
services industry. (source)
H.E. Dr. Erdem Basci, Governor, Central
Bank of the Republic of Turkey, delivering a welcoming address,
emphasised the need for structural reforms that can assist reducing
procyclicality in the financial system and make it more resilient to the
external shocks. He noted that emerging market economies have weathered
the recent financial crisis in a more effective manner than the
advanced countries, which provides the former an opportunity to look at
their financial systems in a more structural perspective. He underscored
the need for making the financial system more inclusive so that it can
provide an avenue for better income and wealth distribution in the
economy. He also appreciated the role of the IFSB in providing a
platform for the supervisors and other stakeholders of the Islamic
financial services industry for coordinated initiatives and preparation
of important prudential standards for the industry.
Mr. Jaseem Ahmed, Secretary General of
the IFSB, enlightened the participants on the work being conducted at
the IFSB to adapt global regulatory changes for the Islamic financial
services industry. In addition, he featured the key points of the IFSB’s
Strategic Performance Plan that has been recently approved by the IFSB
Council. Under this Plan, a roadmap has been developed to engage with
the stakeholders for the further development of Islamic finance. The
roadmap will mainly focus on strengthening the stability and resilience
of Islamic finance through the development of a range of new standards
and guiding principles. Moreover, it will endeavour to strengthen the
basis for market development and to spur the development of new Shariˋāh compliant
instruments. In order to support the formulation, adoption and
implementation of its standards, the IFSB will be launching targeted
research, comparative studies and customised training, learning and
awareness programmes. He also announced the launch of a new global
initiative to revise the “10-year Framework and Strategies for the
Development of the Islamic Financial Services Industry” in coordination
with the Islamic Development Bank and Islamic Research and Training
Institute.
He also informed the participants about
various strategic partnerships made by the IFSB with different
stakeholders. “The pursuit of financial stability”, said Mr. Jaseem,
“does not however solely depend on regulatory development and prudential
standards”. “It depends also on collaboration and cooperation
mechanisms that help all stakeholders towards achieving the common goals
of a sound and sustainable financial services industry”.
H.E. Dr. Mahmoud Mohieldin, Managing
Director of the World Bank, in his keynote address, elaborated the
evolving role of Islamic finance in the global financial system and
enhancing financial inclusion. He stressed the need for a strong
regulatory oversight for Islamic financial services industry and related
capacity building. He also alluded to various corporate governance
issues facing the industry, including those related to Shariˋāh
governance frameworks. Keeping in view the recent emphasis on
macroprudential supervision, he underscored the need to strengthen
insolvency and resolution regimes in the jurisdictions. Highlighting
some strengthens of the Islamic finance, he mentioned that ethical
principles and linkage with the real sector could help the Islamic
financial services industry to be more resilient and robust, provided
attention is given to strengthening the governance framework of the
market players. He also shared various initiatives taken by the World
Bank to support and enhance the capacity building and research in the
Islamic finance.
H.E. Dr. Cevdet Yilmaz, Minister of
Development of the Republic of Turkey tracked the background of recent
financial crisis and mentioned some economic, social and political
implications of the ongoing economic crisis in various economies of the
world. He stressed the need to diagnose the causes of the crisis and
make necessary structural and regulatory reforms, without threatening
the stability and confidence of the financial markets. While comparing
the economic performance of various regions, he noted that emerging
markets have demonstrated a better performance in recent years. He
cautioned that a financial system that is divorced from the real sector
will prove to be more vulnerable to systemic shocks. Noting the inbuilt
strengths of Islamic finance, he emphasised that Islamic financial
products are not meant for addressing the needs of Muslim-majority
nations only, but have the potential to address the financial needs of
all communities. He also enlightened the delegates on the Turkish
government plans to make Istanbul a regional and global financial
centre, which will also work for the development of Islamic finance.
The 9th IFSB Summit will continue until tomorrow, 17 May 2012.
For more details on the 9th IFSB Summit and pre-Summit events, please visit www.ifsbistanbul2012.com or email yazmin@ifsb.org
Source: http://www.ifsb.org/preess_full.php?id=192&submit=more - May 16, 2012
