Islamic Financial Services Board

The Islamic Financial Services Board (IFSB) is an international body that sets standards and offers guidance for Islamic banking and finance regulatory and supervisory agencies.[3][4] It is based in Kuala Lumpur, Malaysia, and began operations in early 2003.[4] As at December 2018, the 180 members of the IFSB comprise 78 regulatory and supervisory authorities, 8 international inter-governmental organisations, and 94 market players (financial institutions, professional firms, industry associations and stock exchanges) operating in 57 jurisdictions.

Islamic Financial Services Board
AbbreviationIFSB
FormationNovember 3, 2002 (2002-11-03) in Malaysia.
TypeIndependent international not-for-profit organization
PurposeSets standards for regulatory and supervisory agencies of the Islamic financial services industry
HeadquartersKuala Lumpur,  Malaysia
Location
  • Level 5, Sasana Kijang, Bank Negara Malaysia 2, Jalan Dato' Onn, Kuala Lumpur, 50480[1]
Region served
Worldwide
Membership
180
Official language
English, Arabic
Secretary-General
Dr. Bello Lawal Danbatta
Main organ
General Assembly
Staff
11-50[2]
Websitewww.ifsb.org

It was founded by "a consortium of central banks" and the Islamic Development Bank.[5] The country of its location, Malaysia, passed a special law the year the IFSB was established -- the Islamic Financial Services Board Act 2002 -- giving the IFSB the usual "immunities and privileges" international organizations receive.[6] In 2005 the IFSB mandate was extended to include supervisors and regulators of insurance and securities markets.[5] A of 2013 the IFSB has issued 19 "Standards, Guiding Principles and Technical Note".[6]

The International Islamic Financial Market is a part of IFSB that standardizes Islamic capital market products and operations, though as of 2013 its recommendations were "not implemented by most Islamic banks". It was founded in November 2001 through the cooperation of the governments and central banks of Brunei, Indonesia and Sudan. Its secretariat is located in Manama Bahrain.[7]

According to one source (Faleel Jamaldeen) the Islamic Financial Services Board differs from the other Islamic financial standards organ, the AAOIFI, in that

  • the AAOIFI sets "best practices for handling the financial reporting requirements of Islamic financial institutions";
  • IFSB standards are "mainly concerned with the identification, management, and disclosure of risk related to Islamic financial products".[8]

See also

References
  1. "Company Overview of Islamic Financial Services Board". Bloomberg. Retrieved 3 August 2017.
  2. "Islamic Financial Services Board Islamic Financial Services Board". Linked In. Retrieved 3 August 2017.
  3. "Background". The Islamic Financial Services Board (IFSB). Archived from the original on 19 August 2015. Retrieved 2 August 2017.
  4. "Islamic Financial Services Board - IFSB". Investopedia. Retrieved 2 August 2017.
  5. Islamic Finance: The Regulatory Challenge. John Wiley & Sons. 2007. p. 3. Retrieved 3 August 2017.
  6. The Developing Role of Islamic Banking and Finance: From Local to Global ... Emerald Group Publishing. 2014. p. 182. Retrieved 3 August 2017.
  7. Khan, What Is Wrong with Islamic Economics?, 2013: p.309-10
  8. Jamaldeen, Islamic Finance For Dummies, 2012:54

Books
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