The Financial Stability Board (FSB) Approves to Include the IFSB's Core Principles for Islamic Finance Regulation (Banking Segment) into the Compendium of Standards
Date posted: 29 January 2020
29 January 2020, Kuala Lumpur - The Islamic Financial Services Board (IFSB) is pleased to announce that its IFSB-17: Core Principles for Islamic Finance Regulation (Banking Segment) standard will be included in the Financial Stability Board (FSB) Compendium of Standards, approved by the Standing Committee on Standards Implementation (SCSI) of the FSB in the annual process of updating the Compendium.
In his statement, the Secretary-General of the IFSB, Dr. Bello Lawal Danbatta said, “After more than a year of endeavours, and with the strong support from our common G20 member jurisdictions as well as objective assessment of need by Standing Committee on Standards Implementation (SCSI) of the FSB, IFSB-17 has been approved for the inclusion into the Compendium of Standards. With this milestone, the work of the IFSB in terms of prudential regulation and standard setting is now recognised to be on par with works of other outstanding international Standard setting bodies.” He further added “In this regard, the IFSB acknowledges the support of all our members, the senior executive board of both IMFand the World Bank Group, the BCBS Secretariat, all members of the SCSI of FSB and members of the Secretariat of the FSB”.
In 2018, the International Monetary Fund (IMF) Executive Board approved the endorsement of the IFSB-17 "Core Principles for Islamic Finance Regulation" (CPIFR) for banking sector and their assessment methodology for the purposes of undertaking financial sector assessments and preparing Reports on the Observance of Standards and Codes (ROSCs), for both fully Islamic banking systems as well as systemically significant Islamic banking systems in dual banking markets.
The IFSB was established in 2002 with a mandate to develop prudential standards for Islamic financial services industry. Since its inception, the IFSB has issued thirty Standards, Guiding Principles as well as Guidance and Technical Notes covering Islamic banking, Islamic capital market, Takāful as well as cross-sector areas. The standards prepared by the IFSB follows a stringent due process as outlined in its Guidelines and Procedures for the Preparation of Standards and Guidance/Technical Notes which involve, among others, the establishment of a sound working group, issuance of exposure draft for public consultation and review by the Sharīʻah Board and Technical Committee, before final approval by the IFSB Council.
For more information on the IFSB-17 and IFSB’s other standards, visit www.ifsb.org.
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