10th IFSB Summit discusses global financial crisis

During the summit, the leaders also discussed regulatory reforms, cross-sectoral approach to the regulation of Islamic finance, and prospects and challenges for new jurisdictions in the first part summit.

The first session, themed, “Financial Regulatory Reforms: Global Overview”, was chaired by H.E. Sultan Bin Nasser Al Suwaidi, Governor, Central Bank of the United Arab Emirates.

The session highlighted the salient features of various global regulatory reforms in recent years.

The panel focused on several initiatives undertaken by the Basel Committee in recent years, including Basel III, to bring back and re-establish the trust and confidence of stakeholders on the banking industry.

These initiatives are also aimed at warranting a safe business model and fostering “ethical behaviour” by the banking institutions.

However, the most important challenge will be to improve the business conduct of the financial institutions which is necessary for ensuring a stable and trusted financial system.

A reference was also made on the guidance on macroprudential measures included in the Exposure Draft of the IFSB Revised Capital Adequacy Standard.

The second session was chaired by H.E. Sheikh Abdulla Saoud Al-Thani, Governor, Qatar Central Bank and Chairman of the IFS, themed, “Cross-sectoral Approach to the Regulation of Islamic Finance and Market Development: Lessons Learnt”.

The speakers shared the importance of an advanced, comprehensive, efficient and integrated approach in the supervision of all the three sectors of Islamic finance – Islamic banking, Islamic capital market, as well as Islamic insurance (Takaful).

The themed for third session was “New Markets, New Frontiers – Prospects and Challenges” and it was chaired by Professor Dr. Necdet Sensoy, Member of the Board, Central Bank of the Republic Of Turkey.

In this session the distinguished speakers highlighted the progress and development, prospects and challenges faced by the IIFS in their respective jurisdictions.

The 10th Islamic Financial Services Boardwas held on 16 and 17 May in Kuala Lumpur and hosted by Bank Negara Malaysia.