The Islamic Financial Services Board (IFSB) has issued a Revised Compilation Guide on Prudential and Structural Islamic Financial Indicators (PSIFIs), 2019.
The Compilation Guide provides information on key indicators, compilation procedures, aggregations and consolidation procedures, etc. It provides assistance to the data suppliers, data compilers as well as the users of PSIFI data.
The first Compilation Guide was issued by the IFSB in 2007, and updated in 2011. Additional changes were compiled in the Supplement to Compilation Guide on PSIFIs, 2015. In addressing latest global and domestic regulatory developments, the revised Compilation Guide on PSIFIs, 2019 covers guidance on collection, compilation and dissemination of PSIFIs for banking, capital markets and takāful institutions offering Islamic financial services.
The main objectives of the PSIFIs as explained in the Guide are to help to:
- Facilitate the monitoring and analysis of the soundness and stability of the Islamic financial services industry (IFSI) through a set of prudential, structural, and financial strength indicators;
- Coordinate the formulation, development, and enhancement of appropriate international prudential standards by the IFSB;
- Promote the development of the IFSI as a vehicle for stimulating economic development and reducing disparities in economic progress between nations;
- Strengthen transparency and international comparability of domestic IFSI in order to facilitate their integration into the international financial system through public accessibility to the PSIFIs and other published cross-country industry data in IFSB research reports; and
- Ascertain the market shares of sharī’ah-compliant financial transactions, products, and services as a percentage of the entire financial system, at both the national and global levels, so as to gauge the performance of the IFSI at any given time.
Secretary General of the IFSB Dr Bello Lawal Danbatta stated: “the PSIFIs is consistent with other international financial statistics such as the financial soundness indicators prepared by the International Monetary Fund (IMF) and are adapted appropriately to cater for the specificities of Institutions offering Islamic financial services (IIFS).”
He further noted, “Now we look forward to enhance the database by expanding to Islamic capital markets and takāful sectors, while the PSIFIs project for the Islamic banking sector has reached an advanced and sustainable stage with coverage of over 95% of global Islamic banking activities.”
Details:
The Compilation Guide is available for download from the IFSB website.