About the Islamic Financial Services Board (IFSB)

The Islamic Financial Services Board (IFSB), which is based in Kuala Lumpur, was officially inaugurated on 3rd November 2002 and started operations on 10th March 2003. It serves as an international standard setting body of regulatory and supervisory agencies that have vested interest in ensuring the soundness and stability of the Islamic financial services industry, which is defined broadly to include banking, capital market and insurance. In advancing this mission, the IFSB promotes the development of a prudent and transparent Islamic financial services industry through introducing new, or adapting existing international standards consistent with Shari'ah principles, and recommend them for adoption. To this end, the work of the IFSB complements that of the Basel Committee on Banking Supervision, International Organisation of Securities Commissions and the International Association of Insurance Supervisors.

The members of the IFSB include regulatory and supervisory authorities, international inter-governmental organisations (International Monetary Fund, The World Bank, Bank for International Settlements, Islamic Development Bank, Asian Development Bank) and market players from various countries.

Malaysia, the host country of the IFSB, has enacted a law known as the Islamic Financial Services Board Act 2002, which gives the IFSB the immunities and privileges that are usually granted to international organisations and diplomatic missions.

ADOPTION OF STANDARDS
Since its inception, the IFSB has issued nine standards, guiding principles and technical note for the Islamic financial services industry focusing on Risk Management, Capital Adequacy, Corporate Governance, Supervisory Review Process, Transparency and Market Discipline, Recognition of Ratings on Shari`ah-Compliant Financial Instruments, Development of Islamic Money Markets, Special Issues in Capital Adequacy Requirements for Sukuk and Real Estate, as well as Governance for Collective Investment Schemes. The IFSB is also working on new standards and guidelines on 1) Corporate Governance in Takaful Operations; 2) Shari`ah Governance and 3) Conduct of Business. The standards prepared by the IFSB follow a lengthy due process as outlined in its Guidelines and Procedures for the Preparation of Standards/ Guidelines which involve, among others, the issuance of exposure draft and, where necessary, the holding of a public hearing.

AWARENESS PROMOTION
The IFSB is actively involved in the promotion of awareness of issues that are relevant or have an impact on the regulation and supervision of the Islamic financial services industry. This mainly takes the form of international conferences, seminars, workshops, trainings, meetings and dialogues staged in many countries.

CONTACT US
Islamic Financial Services Board
3rd Floor, Block A,
Bank Negara Malaysia Building,
Jalan Dato' Onn,
50450 Kuala Lumpur
Malaysia
Tel : + 6 03 2698 4248
Fax : + 6 03 2698 4280
Email : ifsb_sec@ifsb.org

Quick Links
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