The Islamic Financial Services Board (IFSB) has launched the Islamic Financial Services Industry (IFSI) Stability Report 2019 at the IFN Forum in Singapore. The launch was officiated by the Secretary-General of the IFSB, Dr Bello Lawal Danbatta.
This is the seventh IFSB IFSI Stability Report, which has been published annually since 2013. Over the years, the report has become a benchmark publication for the IFSB and numerous other stakeholders, tracking the growth, development and stability assessment of the Islamic financial services industry.
IFSB Secretary-General Dr Bello Lawal Danbatta mentioned that the IFSB launched the soft copy of the IFSI Stability Report 2019 to the public on 31 July 2019. He added that an official launch of the hard copy of the report at the IFN Forum and in a key jurisdiction like Singapore with great potentials of becoming a significant Islamic finance market, offer a great opportunity to share the key report takeaways as well as the outlook for the IFSI.
The report indicates that in 2018, the IFSI recorded a 6.9% year-on-year growth rate on the back of a rebound in oil and commodity prices, improvement in investment climate in most jurisdictions with record year-on-year growth of 26.9% in the Islamic capital market sector. The global assets of the IFSI are estimated to be worth about US$2.19 trillion as at 2Q18, reflecting a softened momentum in growth rate recorded due to trade and economic sanctions, currency depreciations, and increasing inflation in some jurisdictions with a significant presence of Islamic banking.
As stated in the report, the positive growth trajectory of the IFSI is expected to continue into the foreseeable future. However, emphasis should be given to emerging operational issues posed by technology, changing market structures and increasing activities of the non-bank financial institutions.
The report rides on data from the IFSB’s Prudential and Structural Islamic Financial Indicators (PSIFIs) database for its Islamic banking sector analysis.
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The IFSI Stability Report 2019 is available for download from the IFSB website.