27th Meeting of the Council of the IFSB (For Full Members only) and 12th Islamic Financial Stability Forum (by invitation only)

The 27th Meeting of the Council of the IFSB and 12th Islamic Financial Stability Forum are hosted by the Islamic Development Bank. These meetings are by invitation only. For more information on the meetings, please email the following Secretariat in charge: 1) Council Meeting – Ms. Nur Khairun Nissa Md Zawawi, email : [email protected] 2) Islamic Financial Stability Forum – Ms. Yazmin Aziz, email : [email protected] Programme – Event Session(s)

Date	Time	Topics
Day 1 08/12/2015	09:30 – 13:00	27th Meeting of the Council of the IFSB
	14:30 – 16:30	12th Islamic Financial Stability Forum Theme: Promoting Consistency in the Implementation of Prudential Standards The Islamic Finance and Global Financial Stability Report (IFSB-IRTI, 2010), drew attention to the importance of not only accelerating effective implementation of prudential standards to promote and enhance the soundness and stability of the Islamic financial services industry, but also to contributing towards the consistent development of Islamic finance across jurisdictions. The Core Principles for Islamic Financial Regulation for the banking segment (CPIFR) issued by the IFSB in April 2015 has facilitated a step towards this harmonisation and consistency in the implementation of prudential frameworks across countries, by providing a framework for assessment of the regulatory and supervisory framework of the banking sector. The IFSB’s current strategy focuses on promoting the implementation through workshops under the Facilitating the Implementation of Standards (FIS) Initiatives and Implementation Surveys, both of which have contributed substantially towards enhancing the IFSB’s ability to assist RSAs seeking to strengthen their regulatory and supervisory framework for Islamic finance. The IFSB efforts are in line with the practice of other global standard-setting bodies, who are taking steps to not only track the implementation of their standards, but to also review the consistency in such implementation across various jurisdictions. The Basel Committee on Banking Supervision (BCBS), for example, adopted a Regulatory Consistency Assessment Programme (RCAP) in 2012, noting the importance of consistency in the adoption and implementation of prudential standards in enhancing the resilience of the banking system, improving public confidence in prudential ratios and developing a transparent regulatory environment that promotes a level playing field. The programme is a central element of the BCBS’s continuous efforts to monitor the implementation and timely adoption of the Basel III standards, ensuring consistency of the adopted regulations, as well as evaluating the quality and comparability of regulatory outcomes. The RCAP promotes consistent adoption of the Basel framework by helping member jurisdictions identify domestic regulations that are not in line with the letter and spirit of the relevant Basel standards, weigh the materiality of any such deviations and undertake reforms where necessary. The European Banking Authority (EBA), also works to ensure effective and consistent implementation of prudential regulation and supervision in EU countries. It introduced a European Single Rulebook in banking for the purpose of providing a set of harmonised prudential rules for financial institutions throughout the EU, to ensure uniform application of its rules across Member States which serves to close any regulatory loopholes that may arise from differences in prudential frameworks. The EBA thus plays an important role in promoting convergence of supervisory practices in the EU banking sector by identifying any material differences in the practices and formulate necessary policy solutions to enhance convergence between banks. The IMF Staff Discussion Note on Islamic Finance (May 2015) has observed that in Islamic finance jurisdictions, the application of standards is not uniform across countries, which brings to the fore concerns that it may encourage growth in a manner that gives rise to systemic vulnerabilities. It also underlined the importance of seeking greater harmonisation, both across and within countries, through better implementation of existing standards for Sharī`ah governance. Against this background, a natural step forward in furthering the current implementation programme of the IFSB to focus on greater consistency in the adoption of its standards for regulation and supervision of institutions offering Islamic financial services. The 12th Islamic Financial Stability Forum will seek to examine the experiences of the other international agencies to promote and assess the consistency of the implementation of prudential standards, and identify opportunities and direction for future work in the Islamic Financial Services Industry to encourage consistency across Islamic finance jurisdictions.
	14:30 – 14:40	Chairman’s Remarks
	14:40 – 15:00	Presentation on Promoting Consistency in the Implementation of Prudential Standards Speaker: Mr. Marc Farag, Member of Basel Committee on Banking Supervision Secretariat, Basel Committee on Banking Supervision
	15:00 – 15:40	Discussion Discussants: Mr. Mohd Zabidi Md Nor, Director of Prudential Policy Department, Bank Negara Malaysia Mr. Suliman Aljabrin, Banking Supervisor, Saudi Arabian Monetary Agency
	15:40 – 16:00	Q&A Session
	16:00 – 16:30	Coffee Break & Networking

Downloadable Document(s)

1.)

Event Session(s) – PDF Format