Jeddah, 8 December 2015 – The Islamic Financial Services Board (IFSB) is pleased to announce that its second Strategic Performance Plan (SPP), SPP 2016-2018, has been approved by the IFSB Council during the 27th IFSB Council Meeting today.
The four Strategic Key Results Areas (SKRAs) identified in the SPP 2016-2018 are:
SKRA 1: Formulation and Issuance of Prudential Standards and Studies for the Regulation of the Islamic Financial Services Industry
SKRA 2: Facilitating the Implementation of Prudential Standards and Capacity Development
SKRA 3: Increasing Awareness and Knowledge Sharing
SKRA 4: Enhancing Cooperation with Islamic Finance Stakeholders
The SPP 2016-2018 reaffirms the IFSB’s mission and purpose-in-life, as well as its core values of Accountability, Collaboration, Responsiveness and Integrity.
The SPP 2016-2018 aims to continue the IFSB’s focus on its core mandate which is the formulation, and facilitating the implementation, of prudential standards for the banking, Takāful, and Islamic Capital Market sectors with an overarching objective of ensuring the stability and resilience of the Islamic financial services industry (IFSI). These prudential standards are benchmarked against those issued by global standard-setting bodies such as the Basel Committee on Banking Supervision (BCBS), International Association of Insurance Supervisors (IAIS) and International Organization of Securities Commissions (IOSCO), but also include prudential standards that are unique to Islamic finance. The SPP 2016-2018 also grants attention to the state of development of the Islamic financial services industry and its growing interconnectedness with global finance.
The preparation of the SPP 2016-2018 has considered three key areas. Firstly, the new SPP is being formulated in light of the earlier SPP by way of an extensive, independent review that delineated important issues in regards to the conceptualisation of the SKRAs and IFSB Strategic Results Framework (i.e., Outcomes, Outputs, and KPIs) as well as the recorded achievements in their execution. This has resulted in the modification of the SKRAs and IFSB Strategic Results Framework in a manner that revolves around focus, measurability and effectiveness in the carrying out of the IFSB mandate.
Secondly, a detailed assessment of the global regulatory environment was conducted which highlighted the trajectory of the global regulatory agenda in the coming three years. More specifically, the assessment concentrated on the forthcoming work plans of the other international standard-setting organisations, namely BCBS, IAIS, and IOSCO, as well as the high-level objectives of the Financial Stability Board (FSB) along with important areas of relevancy to the IFSI.
Thirdly, an examination of the current state, and the prospective evolution, of the Islamic financial services industry was undertaken in order to ascertain not only the global regulatory agenda’s implications on the industry, but also the unique opportunities and challenges that it faces. The above second and third areas have resulted in a clearly defined annual technical and awareness raising work plan, across the three sectors, for the IFSB in the coming three years. Furthermore, the standard setting process within the IFSB has been analysed both internally and in comparison with other international standard setting institutions, and been streamlined, with the objective of increased responsiveness to the expectations of the IFSB stakeholders.
The Strategic Performance Plan 2016-2018, which is a result of a wide ranging consultation process within the IFSB governance structure as well as with a wide array of stakeholders, is expected to propel the IFSB to a higher level of achievement in the coming period. It builds on the previous SPP, and the lessons learnt in executing it, along with the recognition of the need for the IFSB to evolve in response to changes in its operating environment. Consequently, the expected end result is for the IFSB to strengthen its capability to pursue its mission for the promotion of the stability and resilience of the Islamic financial services industry.
More information on the SPP 2016-2018 will be available on the IFSB website (www.ifsb.org) in due course.
The 27th meeting of the Council of the IFSB was hosted by the Islamic Development Bank at its Headquarters in Jeddah, Saudi Arabia. It was attended 22 central bank governors and heads of regulatory and supervisory authorities, as well as senior representatives from among the Council and Full members of the IFSB, representing 17 countries. The meeting, which was chaired by the Governor, Bank Indonesia, H.E. Agus D.W. Martowardojo, was also attended by the President of the Islamic Development Bank.
