The IFSB and International Sharī`ah Research Academy for Islamic Finance (ISRA) jointly organised the IFSB-ISRA Sharī`ah Roundtable on 5 November 2015 in Kuala Lumpur, Malaysia.
Themed “Financial Safety Nets: Striking a Balance between Sharī`ah Requirements and the Soundness of the Islamic Financial System”, the Roundtable aimed to provide an avenue for intellectual discourse between the Sharī`ah scholars and other stakeholders of the industry on devising solutions for various components of financial safety net that are both practical and Sharī`ah-compliant.
The Roundtable began with opening speeches by Mr. Jaseem Ahmed, Secretary-General, IFSB and Prof. Dr. Mohamad Akram Laldin, Executive Director, ISRA, followed by a presentation on An Overview of the IFSB by Dr. Sherif Ayoub, Assistant Secretary-General, IFSB.
To set the tone for the Roundtable discussions, the IFSB presented two working papers on, i) Strengthening the Financial Safety Net: The Role of Sharī`ah-compliant Lender-of Last-Resort (SLOLR) Facilities as an Emergency Financing Mechanism and ii) Strengthening the Financial Safety Net: The Role and Mechanisms of Sharī`ah-compliant Deposit Insurance Schemes which corresponded to the two topics discussed. The presentations were delivered by Mr. Jamshaid Anwar Chattha, Chief Financial Analyst, Central Bank of Kuwait and Mr. Syed Faiq Najeeb, Member of the Secretariat, IFSB, respectively.
The Roundtable saw participations from Sharī`ah scholars as session chairs and speakers as well as participants. Among the Sharī`ah scholars who participated in the Roundtable were Sheikh Dr. Ali Muhyi Aldin Ali Al Quradaghi, Sheikh Prof. Dr. Mohamed Ali Elgari, Sheikh Dr. Nizam Yaquby and Sheikh Dr. Oni Sahrani.
Eleven chairpersons, speakers and discussants from among senior financial sector supervisors and Sharī`ah scholars discussed the following issues at the Roundtable:-
- Lender of Last Resort Facilities – Structuring Sharī`ah-Compliant Instruments and Mechanisms
- Sharī`ah-compliant Structures for a Deposit Insurance Scheme
Over 90 delegates among the IFSB member and non-member organisations – representatives from regulatory bodies, market players, international agencies as well as academia and students attended the Roundtable.
The papers presented at the Roundtable and ensuing discussions are planned to be published in a joint IFSB-ISRA publication in 2016.