31 July 2019, Kuala Lumpur – The Islamic Financial Services Board’s (IFSB) today issued the seventh edition of its annual flagship publication: the Islamic Financial Services Industry (IFSI) Stability Report 2019. The Report examines the implications for the global IFSI of recent economic developments and changes in the global regulatory and supervisory frameworks, tracks developments and trends as well as examines the resilience of the three sectors of the IFSI: Islamic banking, Islamic capital market and takāful.
The IFSB Secretary-General, Dr. Bello Lawal Danbatta stated that the IFSI Stability Report 2019 takes place a decade after the global financial crisis (GFC) and at a time when various financial reforms arising from the crisis are now being finalised and operationalised. He stated further that amidst the softened momentum of growth recorded in the global financial system in 2018 due to, among other reasons, increasing inflation and currency depreciation in a number of jurisdictions with significant presence of Islamic banking the global IFSI has recorded a 6.9% (y-o-y) growth rate, and is estimated to be worth about USD 2.19 trillion as at 2Q18.
Dr. Bello highlighted that based on various analyses contained in the IFSI Stability Report 2019, the global IFSI is well placed to maintain its positive growth trajectory, experiencing asset increases across all three of its main component markets. To achieve this, he remarked that the IFSI should be wary of the new challenges posed by evolving market structures due mainly to advancements in financial technology, increasing activities of the non-bank financial institutions, as well as increasing cyber risks among other operational issues.
Key highlights of the IFSI Report 2019 include:
The Report utilises data from the IFSB’s Prudential and Structural Islamic Financial Indicators (PSIFIs) database for the Report’s Islamic banking sector analysis.
The IFSI Stability Report 2019 is available for download from the IFSB website, www.ifsb.org.