14 September 2015, Kuala Lumpur – The Islamic Financial Services Board (IFSB) and International Shari’ah Research Academy for Islamic Finance (ISRA) are jointly organising a Sharī`ah Roundtable on 5 November 2015 in Kuala Lumpur, Malaysia. The Roundtable’s theme will be ‘Financial Safety Nets: Striking a Balance between Sharī`ah Requirements and the Soundness of the Islamic Financial System’.
The Roundtable aims to provide a platform that will bring together Sharī`ah scholars, legal practitioners, regulators and market players to discuss key aspects of financial safety nets such as Lender of the Last Resort (LOLR) and Deposit Insurance Schemes from the Sharī`ah perspective in order to identify the major obstacles, issues and challenges in introducing such facilities in different jurisdictions.
The first session, themed, “Lender of Last Resort Facilities – Structuring Sharī`ah-Compliant Instruments and Mechanisms”, will discuss the underlying principles for Sharī`ah-compliant instruments and mechanisms of LOLR facilities that can allow the supervisory authorities to provide liquidity support to institutions offering Islamic financial services (IIFS) in normal and stressed times. The Session will also review the existing Sharī`ah-compliant LOLR instruments that are in place in various jurisdictions, and discuss alternative mechanisms that can be introduced to increase the options available to the IIFS.
The second session, themed, “Sharī`ah-Compliant Structures for a Deposit Insurance Scheme”, will examine the concept of deposit insurance and its relevance to the objective of protecting the fund providers of IIFS. The speakers will investigate the current and potential structures for devising a Sharī`ah-compliant deposit insurance scheme and relevant issues from legal and Sharī`ah perspectives.
The Roundtable discussions aim to take stock of, and analyse, the available safety net structures, as well as suggest solutions that can ensure the fulfillment of Sharī`ah requirements which, at the same time, meet the objective of strengthening the soundness and resilience of the Islamic financial services industry.
The Roundtable is held back to back with ISRA’s 10th International Sharī`ah Scholars Forum (ISSF 2015) which will be held on 3 – 4 November 2015 in Kuala Lumpur.
For further information of the Roundtable, visit www.ifsb.org, or contact Mrs Ida Shafinaz Ab. Malek at [email protected].
