Bandar Seri Begawan, BRUNEI DARUSSALAM – May 8, 2024 – The Islamic Financial Services Board (IFSB) has officially kicked off its 16th IFSB Summit today, themed ‘Islamic Finance and Financial Stability in an Evolving Environment: Navigating Emerging Risk’. The two-day summit, organised by the IFSB and hosted by the Brunei Darussalam Central Bank (BDCB), highlights the enduring resilience of Islamic finance alongside opportunities and challenges in a rapidly changing contemporary global financial landscape.
Held at The Empire in Bandar Seri Begawan, in Brunei Darussalam, the event received participants from over 20 countries, comprising central bank governors, industry leaders, and esteemed representatives from inter-governmental institutions and academia.
In his Summit keynote, The Honourable Dato Seri Setia Dr. Awang Haji Mohd Amin Liew bin Abdullah, Minister at The Prime Minister’s Office and Minister of Finance and Economy II to Brunei Darussalam, underscored the importance of Islamic finance in addressing global challenges, including financial downturns, climate risks, digital disruptions, and geopolitical tensions. Emphasising the potential for differentiation through innovation in digitalisation and sustainability, he illustrated the resilience and stability of Islamic finance through principles including risk-sharing, asset-backed financing, and ethical investment. He also discussed Brunei Darussalam’s role in advancing Islamic finance, showcasing its commitment to financial inclusion, digital transformation, and addressing climate change.
The Honourable Dato Seri Paduka Awang Haji Khairuddin bin Haji Abdul Hamid, Deputy Minister of Finance and Economy (Economy), Ministry of Finance and Economy, Brunei Darussalam, noted in his Welcoming Address that the 16th IFSB Summit serves as a valuable platform bringing international delegates to come together to Brunei Darussalam, discussing the latest emerging issues and risks that may impact the resilience and stability of the Islamic financial services industry.
The event began with a pre-summit in the morning featuring a Country Showcase led by BDCB and a panel session between BDCB, key industry players and academics. This was followed by a special presentation by Bank Islam Brunei Darussalam (BIBD).
Dr. Ghiath Shabsigh, the newly-appointed Secretary General of the IFSB, opened the Pre-Summit stating, “The Islamic finance industry has made significant strides and is expected to continue its trajectory, especially in the capital markets, Sukuk, and Takaful segments. This progress stems from robust institutional infrastructure and the development of international standards alongside national regulatory efforts. However, amidst increased uncertainty, including macroeconomic challenges and structural shifts like climate change and digitalisation, we must remain vigilant and continue to strengthen collaboration and dialogue among national authorities and Islamic finance standard-setting bodies and financial institutions.”
Thanking BDCB and the people of Brunei Darussalam for their hospitality, he adds, “This edition of the IFSB Summit, a result of our collaboration with BDCB, underscores the need for ongoing adaptation and industry collaboration to ensure the resilience of Islamic finance in the face of evolving risks.”
At the same session, H.E. Hajah Rokiah binti Haji Badar, Managing Director of BDCB, affirmed Brunei Darussalam’s aspiration to become an Islamic finance hub in her welcoming speech, “Islamic finance remains one of the key focus areas in BDCB’s strategic development agenda as set out in the Brunei Darussalam Financial Sector Blueprint 2016-2025, to support the nation’s vision of becoming a leading international Islamic financial hub.”
The Summit in the afternoon featured two panel discussions, covering the implications of emerging risks such as inflation and volatility on the industry, policy challenges and international spillovers, and regulatory approaches to climate-related financial risks and their impact on Islamic finance.
For more information on the 16th IFSB Summit, visit www.ifsbsummit2024.com.
