العدد الحالي: ايلول/ سبتمبر 2018       اختر عدد :
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كلمة المجلس العام

Abdelilah BELATIK

Secretary General of CIBAFI

Welcome to the 68th edition of the Global Islamic Economics Magazine (GIEM). As always, it is our pleasure to keep you updated on the current updates and prospects of the global Islamic financial services industry (IFSI). The GIEM also serves as a platform for CIBAFI to keep its stakeholders informed about its activities and key initiatives.

As we continue to seek greater heights and enrich our mandate to help develop the Islamic finance industry in 2018, the Secretariat is pleased to share that it has achieved all its set objectives for the year 2017 in accordance with its work plan for 2017, and is well positioned to continue this endeavor through achieving its set objectives and goals for 2018.

We have started this year very firm and dynamic and we look forward to an exciting year for CIBAFI and the industry. CIBAFI has started 2018 with its first Members’ Strategic Session for 2018 on the process of its preparations for its new Strategic Plan 2019 - 2022.As a continuation of the dialog with its members, CIBAFI held a Members’ Strategic Session on 8th of January, in Khartoum, Sudan on the sideline of the Technical Workshops.

As a part of its first Strategic Objective of Policy, Regulatory Advocacy, CIBAFI is preparing its comments to theBasel Committee on Banking Supervision (BCBS) on its Consultative Document (CD): “Stress Testing Principles”. The BCBS CD on stress testing principles for financial institutions is revising the existing principles (issued in May 2009). The existing principles were prepared after the global financial crisis to focus on the crisis scenarios. The new proposed guidelines in the CD are shorter than the previous guidelines, however, they bring more high-level recommendations to ensure that they can be used to guide all elements of a sound stress-testing framework.

On a separate note an interesting and important development is taking place on conventional regulatory front, where the International Organization of Securities Commissions (IOSCO), has issued its Consultation Paper (CP) on “Strengthening the Governance and Oversight of the International Audit-related Standard-setting Boards in the Public interest” in November 2017. Aim of this document is to promote high-quality international auditing and ethical standardsand bring best practices to some principles that standard setters should observe while developing standards, for instance principles such as (i) public interest in standard setting and quality, (ii) independence of the standard-setting process, (iii) credibility, (iv) cost effectiveness, (v) relevance, (vi) transparency and (vii) accountability.

 

From our side, the Islamic financial services industry should also act in this line of regulatory developments, and establish common and comprehensive guiding principles that would aim to standardize the standards development processes. It is worth discussing and reviewing to what extent  the Islamic financial standard setters have been successful in establishing a consistent and robust standards issuance process. For instance, in terms of structure of the standards, issuance process, consultation and language of the standards.

 

Setting up a working / monitoring group from International financial institutions that would determine some standard operating procedures for standards issuance, would help to improve quality, consistency and comprehensiveness of the Islamic financial standards issuance. This would, in its way, promote the soundness and stability of the Islamic financial services industry.

Aligned with its fourth strategic objective of Professional Development, CIBAFI organized, a Technical Workshop on Stress Testing for Islamic Financial Institutions (IFIs) in Khartoum, Sudan on 8-10 January 2018, which was kindly hosted by the Central Bank of Sudan.

The three days of the Technical Workshop has examined different techniques of stress testing and the crucial role of stress testing in capital planning and capital management as well as the role of the regulatory authorities in managing industry-wide stress testing. The Programme has included wide range of case studies and exercises as well as experience sharing sessions facilitated by senior representatives from the International Monetary Fund (IMF), United States; Banking Regulation and Supervision Agency (BRSA) of Turkey; Kuwait Finance House from Kuwait; and the Central Bank of Sudan.

The Technical Workshop was attended by 100 delegates from 10 jurisdictions representing Islamic banks and financial institutions as well as Regulatory and Supervisory Authorities (RSAs), thus exposing the notion of stress testing, its practical application, best practices and experience sharing from different jurisdiction practices.

CIBAFI will continue to focus on important industry issues and help address them as a part of its mandate and its support to the Islamic finance industry in order to ensure its continued success. Stay tuned!