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During the 10th Islamic Financial Services Board (IFSB) Summit key leaders discussed the industry’s developments following the global financial crisis as well as regulatory reforms, cross-sectoral approach to the regulation of Islamic finance, and prospects and challenges for new jurisdictions. The event was held on 16 and 17 May in Kuala Lumpur and hosted by Bank Negara Malaysia. It consisted of three sessions themed “Financial Regulatory Reforms: Global Overview”, “Cross-sectoral Approach to the Regulation of Islamic Finance and Market Development: Lessons Learnt” and “New Markets, New Frontiers – Prospects and Challenges”. The panel discussed issues like initiatives undertaken by the Basel Committee in recent years, supervision of all the sectors of Islamic finance as well as progress and development, prospects and challenges faced by the IIFS.

Islamic Development Bank (IDB) president Dr Ahmad Mohamed Ali Al Madani suggested four key areas for the Islamic Financial Services Board (IFSB) to focus on durich his keynote address at the 10th IFSB Summit in Kuala Lumpur. These include the creation of a conducive enabling environmen, adoption of IFSB and AAOIFI standards by all stakeholders, shortage of qualified manpower and financial inclusion through Islamic microfinance, supported by Zakat and Awqaf. In this context, IDB hopes for more collaborative opportunities with IFSB. Meanwhile, Sheikh Abdulla Saoud Al-Thani, chairman of IFSB 2013, highlighted some of the challenges that lie ahead in the Islamic financial service industry like the under-penetrated Takaful industry.

The Council of the Islamic Financial Services Board (IFSB) has yesterday resolved to admit sevenorganisations into the IFSB membership. The newly admitted Associate Members are Indonesia Deposit Insurance Corporation, Banque Centrale Des Etats de L'afrique de L'ouest (Senegal), and the Central Bank of Tunisia. New Observer Members are SAB (France), Finance Accreditation Agency Berhad (Malaysia), RAM Rating Services Berhad (Malaysia) and Fajr Capital Limited (UAE). Consequently, the IFSB comprises now 187 members, consisting of supervisory and regulatory authorities, as well as international inter-governmental organisations, and market players.

The Islamic Financial Services Board (IFSB) seeks to offer rules and regulations to organize work of Islamic banks and financial institutions.It has been providing a number of organizational and supervisory criteria for auditors, central banks, takaful companies or insurance firms. Qatar Central Bank governor Sheikh Abdullah bin Saud Al-Thani is chairman of the IFSB Board. IFSB's sukuk issuance program was granted A1 rating by Standard and Poors, paving way sukuk issuance for second quarter this year.

The European Central Bank and the Malaysia-based Islamic Financial Services Board (IFSB) are conducting a joint study on policies affecting Islamic finance in Europe. European scholars and regulators are going to examine a broad set of policy and regulatory issues in relation to Islamic finance in Europe. An expected release date was not given. The study will be complemented on April 9 by the IFSB's annual forum, which will be hosted by the Bank of Italy in Rome.

According to Bahrain central bank executive director Khalid Hamad Abdul Rahman Hamad, making Islamic Financial Services Board (IFSB) standard mandatory is essential to take Islamic finance to the next level which is internationalisation. Until now, the articles of association of IFSB is voluntary and does not require the member countries to adopt. With the standard being mandatory, situations or regulatory arbitrage can be avoided. Moreover, Khalid Hamad noted that growth for a certain industry would require proper regulations, good standards in accounting, practice, prudential and skilled resources. He added that Islamic finance must invest in syariah-compliant instruments that create value for the society.

Khalid Hamad, executive director of the Bahrain Central Bank, said that the implementation of the Malaysian-based Islamic Financial Services Board (IFSB) should be mandatory. These rules and regulations would contribute to better growth of the industry. He further pointed out that the role of the IFSB is very similar to the one of the Basel committee in terms of issued guidelines and standards.

The Islamic Financial Services Board is actively working on organizing an Islamic Financial Services Industry (IFSI) Stability Report. The publication is due in May 2013. The goal of the report is to achieve a number of objectives, among which to stress on the growth trend and challenges faced by the IFSI post-crisis, and to bring the progress on various financial initiatives undertaken to promote global financial stability and the impact on the IFSI up to date. The Roundtable on the Islamic Financial Services Industry Stability Draft Report will take place on 21st of January 2013 at Sasana Kijang, Kuala Lumpur, Malaysia.

The Asian Development Bank (ADB) and Islamic Financial Services Board (IFSB) shall cooperate in the promoting of Islamic finance in common developing member countries. The cooperation should be based on joint technical assistance and/or policy-based work in member countries.

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Jaseem Ahmed was appointed Secretary General by the Islamic Financial Services Board.
Ahmed, who currently serves as the Director of the Southeast Asia Department of the Asian Development Bank, succeeds Datuk Rifaat Ahmed Abdel Karim to become only the second secretary general of the standard setting organisation.

The Islamic Financial Services Board (IFSB) released on 1 April that the IFSB Council adopted two documents to further facilitate efforts towards enhancing the soundness and stability of the Islamic financial services industry.

In its 12th meeting held at the Islamic Development Bank's (IDB) headquarters in Jeddah on March 26th 2008, the Council of the Islamic Financial Services Board (IFSB) resolved to approve two documents that aim to further facilitate efforts towards enhancing the soundness and stability of the Islamic financial services industry. The two documents are:

Guidance Note in Connection with the Capital Adequacy Standard: Recognition of Ratings by External Credit Assessment Institutions (ECAI) on Shari'ah-Compliant Financial Instruments (Guidance Note)

Technical Note on Issues in Strengthening Liquidity Management of Institutions Offering Islamic Financial Services: The Development of Islamic Money Markets (Technical Notes)

Guidance Note in Connection with the Capital Adequacy Standard: Recognition of Ratings by External Credit Assessment Institutions (ECAI) on Shari'ah-Compliant Financial Instruments (Guidance Note)