IFSB-ADB conference on Islamic Finance for Asia

MANILA, Philippines: The Islamic Financial Services Board (IFSB) and the Asian Development Bank (ADB) hosted a conference on 'Islamic Finance for Asia: Development, Prospects and Inclusive Growth', to create greater awareness of the opportunities brought about by Islamic finance to the Asian region.

It also focused on further developing the Islamic financial services industry, its progress and challenges, while creating greater opportunities for interaction and cooperation among members of the IFSB and ADB.

The conference examined the experiences of selected Asian countries in Islamic finance, with a focus on the regulatory requirements and other pre-conditions needed to set up and sustain the industry's orderly development.

It also identified the benefits of Islamic finance. The sessions and discussions drew upon the perspectives of market opportunities and challenges, global and national regulatory requirements, and facilitation of cross-border investment flows.

Topics discussed included Islamic finance for Asia: Innovation, Inclusion and Growth, Stability, Resilience and Regulatory Issues, Financial Inclusion as a Core Concept, Islamic Capital Market, Implementation of the IFSB Standards and panel discussion on the Way Forward - A Roadmap for Asia.

Following the conference, a roundtable session was held for regulators to discuss and share their experiences, issues and challenges in developing an Islamic finance regulatory regime and in supervising the Islamic financial services industry.

Among those discussed at the roundtable were the legal and regulatory issues for Islamic finance post-crisis and the role of governments and private sector in undertaking initiatives for Islamic finance.

The ADB and the IFSB are also jointly implementing regional technical assistance to help improve access to Islamic finance in Afghanistan, Bangladesh, Indonesia and Pakistan, with a $750,000 technical assistance (TA) grant, approved by the ADB in October 2012.

The TA grant will be used to develop an e-module platform to build capacities on prudential standards developed by IFSB. The TA grant is funded by the Government of Luxembourg's Financial Sector Development Partnership Fund and the Republic of Korea e-Asia and Knowledge Partnership Fund, to be administered by ADB.

The IFSB is an international standard-setting organisation that promotes and enhances the soundness and stability of the Islamic financial services industry by issuing global prudential standards and guiding principles for the industry, broadly defined to include banking, capital markets and insurance sectors.

The IFSB also conducts research and coordinates initiatives on industry-related issues, and organises seminars and conferences for regulators and industry stakeholders.

The IFSB works closely with relevant international, regional and national organisations, research and educational institutions and market players.

The members of the IFSB comprise regulatory and supervisory authorities, international inter-governmental organisations and market players, professional firms and industry associations.