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AboutIFSB>Establishment>Background

Background
TheIslamicFinancialServicesBoard(IFSB),whichisbasedinKualaLumpur,was

Establishment
Background
Mission
CoreValues

officially inaugurated on 3rd November 2002 and started operations on 10th March
2003. It serves as an international standardsetting body of regulatory and
supervisoryagenciesthathavevestedinterestinensuringthesoundnessandstability
oftheIslamicfinancialservicesindustry,whichisdefinedbroadlytoincludebanking,
capital market and insurance. In advancing this mission, the IFSB promotes the
developmentofaprudentandtransparentIslamicfinancialservicesindustrythrough
introducing new, or adapting existing international standards consistent with Shar'ah

Objectives

principles,andrecommendthemforadoption.

GoverningDocuments

To this end, the work of the IFSB complements that of the Basel Committee on

SecretaryGeneral

Banking Supervision, International Organisation of Securities Commissions and the

InternationalAssociationofInsuranceSupervisors.
As at December 2015, the 189 members of the IFSB comprise 65 regulatory and
supervisoryauthorities,eightinternationalintergovernmentalorganisations,and116
market players (financial institutions, professional firms and industry associations)
operatingin47jurisdictions.
Malaysia, the host country of the IFSB, has enacted a law known as the Islamic
FinancialServicesBoardAct2002,whichgivestheIFSBtheimmunitiesandprivileges
thatareusuallygrantedtointernationalorganisationsanddiplomaticmissions.

AdoptionofStandards
Sinceitsinception,theIFSBhasissuedtwentyfourStandards,GuidingPrinciples
and Technical Note for the Islamic financial services industry. The published
documentsareontheareasof:
1. RiskManagement(IFSB1)
2. CapitalAdequacy(IFSB2)
3. CorporateGovernance(IFSB3)
4. TransparencyandMarketDiscipline(IFSB4)
5. SupervisoryReviewProcess(IFSB5)

CalendarofEvents
IFSBprogrammestofacilitatethe
developmentoftheIslamicfinancial
servicesindustry
28Mar2016|Muscat,OMAN
IFSBFISWorkshopSeries(Oman)
10Apr2016|Cairo,EGYPT
IFSBAnnualMeetings2016:28th
MeetingoftheCouncil,14thGeneral
AssemblyoftheIslamicFinancial
ServicesBoard&OtherEvents
25Apr2016|KualaLumpur,
MALAYSIA
PublicHearingoftheIFSBExposure
Draft:TechnicalNoteonStress
TestingforInstitutionsOffering
IslamicFinancialServices(IIFS)
23May2016|Madrid,SPAIN
SeminaronIslamicFinanceTheReal
EconomyandtheFinancialSector
30May2016|Istanbul,TURKEY
WorldBankIFSBTurkishTreasury
Conference:RealisingtheValue
PropositionofTakfulIndustryfora
StableandInclusiveFinancialSystem
19Sep2016|Lusaka,ZAMBIA
IFSBFISWorkshopSeries(Zambia)
07Nov2016|MOROCCO
IFSBFISWorkshopSeries(Morocco)

6. GovernanceforCollectiveInvestmentSchemes(IFSB6)
7. SpecialIssuesinCapitalAdequacy(IFSB7)
8. GuidingPrinciplesonGovernanceforIslamicInsurance(Takful)Operations
(IFSB8)
9. ConductofBusinessforInstitutionsofferingIslamicFinancialServices(IIFS)
(IFSB9)
10. GuidingPrinciplesonShar`ahGoveranceSystem(IFSB10)

11. StandardonSolvencyRequirementsforTakful(IslamicInsurance)
Undertakings(IFSB11)
12. GuidingPrinciplesonLiquidityRiskManagement(IFSB12)
13. GuidingPrinciplesonStressTesting(IFSB13)
14. StandardonRiskManagementforTakful(IslamicInsurance)Undertakings
(IFSB14)
15. RevisedCapitalAdequacyStandard(IFSB15)
16. RevisedGuidanceonKeyElementsintheSupervisoryReviewProcess(IFSB
16)
17. CorePrinciplesforIslamicFinanceRegulations(IFSB17)
18. RecognitionofRatingsonShar`ahCompliantFinancialInstruments(GN1)
19. GuidanceNoteinConnectionwiththeRiskManagementandCapitalAdequacy
Standards:CommodityMurbahahTransactions(GN2)
20. GuidanceNoteonthePracticeofSmoothingtheProfitsPayouttoInvestment
AccountHolders(GN3)
21. GuidanceNoteinConnectionwiththeIFSBCapitalAdequacyStandard:The
DeterminationofAlphaintheCapitalAdequacyRatio(GN4)
22. GuidanceNoteontheRecognitionofRatingsbyExternalCreditAssessment
Institutions(ECAIS)onTakfulandReTakfulUndertakings(GN5)
23. QuantitativeMeasuresforLiquidityRiskManagement(GN6)
24. DevelopmentofIslamicMoneyMarkets(TN1)
The standards prepared by the IFSB follow a lengthy due process as outlined in its
GuidelinesandProceduresforthePreparationofStandards/Guidelineswhichinvolve,
amongothers,theissuanceofexposuredraftand,wherenecessary,theholdingofa
publichearing.

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IFSB

AwarenessPromotion
The IFSB is actively involved in the promotion of awareness of issues that are
relevantorhaveanimpactontheregulationandsupervisionoftheIslamicfinancial
servicesindustry.Thismainlytakestheformofinternational conferences, seminars,
workshops,trainings,meetingsanddialoguesstagedinmanycountries.
SeeSpeechesdeliveredattheIFSBInaugurationCeremony(November2002)
1. WelcomingSpeechbyGovernor,BankNegaraMalaysia,Dr.ZetiAkhtarAziz
2. KeynoteAddressby(then)MalaysianPrimeMinister,Dr.MahathirMohammad

Backtotop

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