Conference on Enhancing the Resilience and Stability of the Islamic Financial System kicks off
Kuala Lumpur, November 20, 2008 – An international conference themed Enhancing the Resilience and Stability of the Islamic Financial System kicked off this morning with the participation of over 250 high level financial industry professionals from among the central banks of Brunei, Indonesia, Malaysia, Mauritius and Sudan as well as international organizations such as the World Bank, the International Monetary Fund, Asian Development Bank, Islamic Development Bank. The Conference, organized by the Islamic Financial Services Board (IFSB) and the Washington-based Institute of International Finance (IIF) was also attended by chairmen, chief executives and directors of local and international financial institutions.
Tan Sri Dr. Zeti Akhtar Aziz, Governor of Bank Negara Malaysia, who is hosting the Conference is delivering the Keynote Address. Dr. Zeti was recently appointed as a member of the United Nations’ high-level task force to examine possible reforms of the global financial system.
Professor Rifaat Ahmed Abdel Karim, Secretary-General of the IFSB in this speech noted that at a time when the global financial system is facing challenges the timeliness of having a conference to discuss the pertinent question of whether the Islamic financial system is truly strong enough to weather and economic or financial crisis. He reflected, “As the Islamic financial services industry (IFSI) is rapidly expanding globally with an increasing number of countries aspiring to become Islamic financial centres, coupled with the fact that the industry is not immune to risks, it is of utmost importance to ensure that the standards developed and adopted by the IFSB are promptly implemented and effectively enforced in jurisdictions where Islamic financial services are being offered. This would enhance the understanding of the stakeholders of the IFSI on the peculiarities of Islamic financial business and its risks and thus strengthen their capabilities to effectively manage these risks in order to achieve the desired outcome of financial stability in the IFSI.”
Meanwhile Charles Dallara, Managing Director of the IIF, stated, “At this time of global economic strains the resilience of Malaysia’s economy reflecting impressive sound policies by the government and the central bank. Indeed, while all of Asia’s leading emerging market economies will be affected by the formidable recession in Europe, North America and in Japan, countries such as Malaysia represent a meaningful source of strength in a now highly globalised world. On the financial front, the stress that has been seen has been extraordinary and the weaknesses that have been exposed not only call for substantial reforms, but also for new ways of doing business. It is therefore especially important that we are meeting here today to discuss Islamic finance, which has significant potential to contribute to confidence in international finance in key parts of the world today.”
Day 2 of the conference will see speakers and delegates discuss the robustness of the Islamic financial system in terms of its’ current risk management practices and available prudential standards. The final session will deliberate the vital issue of managing the Islamic financial system in a crisis.
