IFSB SUMMIT TO DISCUSS FINANCIAL GLOBALIZATION IMPACT

KUALA LUMPUR

The Islamic Financial Services Board (IFSB) will discuss the impact of financial globalisation on Islamic financial services at its fifth annual summit in Amman, Jordan.

In a statement yesterday, it said the summit, themed “Financial Globalisation and Islamic Financial Services”, would discuss topics including opportunities and challenges of the globalisation of Islamic financial services, cross-border capital flows and key issues in regional integration of Islamic financial markets.

“With more and more IFSB member countries now acceding to the World Trade Organisation (WTO) provisions, it is important for regulators, market players and other interested parties to familiarise themselves with how financial globalisation is impacting Islamic financial services,” it said.

“At a time when the conventional banking sector is facing a serious credit crunch following investments in subprime US housing mortgage loans, which have since collapsed, there may be even more migration to Islamic financial services in certain countries and more lessons to be learnt for both financial systems,” it added.

IFSB would convene six governors of central banks, experts and practitioners from respective fields to address the summit, which would be held on May 13, 2008, and the day after, it said.

Regarding the sector, it said the year-on-year growth of Islamic finance was impressive and that augured well for future viability of the sector. “Despite the absence of empirical research on market size, the sector is estimated by some to grow at a robust 20% per annum over the next few years.”

The summit will be held under the patronage of the Queen of Jordan, Rania Al-Abdullah. Further details can be found at www.ifsbamman2008.com.

The IFSB 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 includes banking, capital market and insurance.

It has 150 members including 37 regulators and supervisory authorities as well as the International Monetary Fund, The World Bank, Bank for International Settlements, Islamic Development Bank, Asian Development Bank, and 108 market players and professional firms operating in 31 jurisdictions.