Conference on Emerging Financial Stability Framework

The Conference is jointly organised with the Islamic Development Bank and Islamic Research and Training Institute, and hosted by the UK Trade and Investment. Participation is by invitation only. Please email Ms. Puteri at [email protected] for details. Programme – Event Session(s)

Date	Time	Topics
Day 1 01/07/2009	08:30 – 09:00	Registration
	09:00 – 10:15	Opening and Keynote session
	10:15 – 10:45	Coffee break
	10:45 – 12:00	Session 1: Structure of Islamic Financial Services Industry (IFSI) and Financial Stability Lessons of current crisis – Can the inherent characteristics of Islamic finance (link to real assets, risk sharing with fund providers, and limits on debt/fixed income financing) promote stability? What is the current structure of IFSI, in terms of how well commerce, banking, securities, and Insurance are operationally and legally linked in Islamic finance? What are the appropriate organisational structures for institutions that offer Islamic financial services (IIFS) (both banks and Takāful), in light of their inherent characteristics? Linking of Commercial /real estate activities and financial intermediation. What are the organisational and stability Implications? How to separate commerce and trade from financial intermediation? Governance and organisational implications of funding through profit sharing investment accounts (PSIA) and financing through profit sharing modes; should there be a separate subsidiary for PSIA and profit sharing financing? Or should a cooperative form of bank be favoured in which the PSIA holders would be the owners?
	12:00 – 13:15	Session 2: Emerging Prudential Framework Supervisory and capital adequacy implications of PSIA Risk management – role of derivatives and other hedging products in Islamic finance; is on-balance sheet risk management an alternative to derivatives and off balance sheet hedging? Transparency and disclosure – cross-sectoral aspects
	13:15 – 14:30	Lunch and Prayers
	14:30 – 15:45	Session 3: Legal Infrastructure and Safety Nets Legal framework for asset securitisation – current practices and key issues. Deposit insurance and investor protection regimes for Islamic finance; valuation issues for PSIA under investor/ depositor protection schemes Insolvency regimes (with particular reference to the rights of PSIA holders and Takāful policy-holders), loan recovery, and asset restructuring with Islamic finance contracts.
	15:45 – 17:00	Session 4: Liquidity Infrastructure Developing sovereign Sukūk markets and Islamic interbank money markets – key issues; need for a comprehensive approach; insufficient availability of assets for securitisation; the scope for regional/ international cooperation to build a pipeline of assets. Central bank’s operations with IIFS – lender of last resort, OMOs, reserve and liquidity requirements etc., central bank’s role in promoting primary dealers and secondary markets. How to ensure level playing field between IIFS and conventional banks in monetary operations? Integration of sovereign Sukūk in the overall public debt and asset management and money supply management – key issues.

Downloadable Document(s)

1.)		Event Session(s) – PDF Format
2.)		Conference Programme
3.)		Registration Form