More Indonesian educators in religious education eligible for wage subsidies

The Ministry of Religious Affairs in Indonesia (Kemenag) together with the Committee for the COVID-19 Handling and National Economic Recovery Communication Team (KPCPEN) and the Indonesian Ministry of Finance have launched wage subsidies for non-civil servant educators and educational personnel (Bantuan Subsidi Upah Pendidik dan Tenaga Kependidikan Non-PNS, or BSU PTK non-PNS) under the Kemenag's domain. This programme is part of government support for PTK Non-PNS during the COVID-19 pandemic.

This news was disclosed by Dr Muhammad Zain, S.Ag., M.Ag, Director for Madrasah Educators and Educational Personnel of the Directorate General of Islamic Education at the Ministry of Religious Affairs, at a dialogue titled Wage Subsidy for Non-Civil Servant Educators and Educational Personnel Teaching Religious Education School Subjects at the KPCPEN Media Center on 19 November.

"As many as 84% of the teachers in the Kemenag domain are working on short-term contracts (honorer). Meanwhile, teachers with civil servant status amount to only 126,000 people. So, the BSU PTK Non-PNS programme is very beneficial for educators and education personnel within the Ministry of Religious Affairs domain. The COVID-19 pandemic has had a significant impact on madrasah teachers. Moreover, many madrasah are operating under non-profit foundations. There are even some religious education teachers that are only paid Rp300,000 per month," explained Dr Muhammad Zain. Those interested in the programme can check the Educators and Educational Personnel Services Information System (SIMPATIKA) for eligibility criteria. They must have a national identification number (NIK); a bank account; do not currently benefit from BSU Tenaga Kerja, the Manpower Ministry's workers wage subsidy programme; are not recipients of Kartu Prakerja, a pre-employment card programme; and earn less than Rp5 million with non-civil servant status. Facilities to help open a bank account for those who do not have one will be provided.

BSU Non-PNS PTK recipients in the Religious Affairs ministry domain consist of kindergarten (raudhatul athfal)/madrasah teachers, Islamic religion education teachers in public schools, Catholic religion education teachers, Buddhist religion education teachers and Confucian religion education teachers. Each recipient will receive a lump sum of Rp1.8 million, and there are some 637,048 beneficiaries. The full budget is more than Rp1.15 trillion.

According to Dr Muhammad Zain, aid recipients will be vetted rigorously. "So, the validation process is not one-dimensional because we also involve the BPJS (social security provider). We've conducted an internal review through the Kemenag's Inspectorate General. The data validation process is carried out on multiple levels. This way, we are able to prevent duplicate data or channelling aid to the wrong people.

"On the bureaucratic side, we have collaborated with regional offices of the Ministry of Religious Affairs to monitor schools in their working areas. All data validation processes must be tiered. Hopefully the implementation will run smoothly and that things of concern will not happen," he said.

In addition, he said that there will be no reduction in aid value when it reaches each beneficiary. "We hope that each beneficiary will receive Rp 1.8 million in full, not deducted by income tax. You see, the programme is a government aid programme. On the other hand, the government also carries out strict supervision over the process of the aid distribution. In fact, the KPK (Corruption Eradication Commission) also supervises the process," he said.

"To fellow teachers and honorer education personnel, let's continue to be optimistic. We must continue to carry out our duties professionally because our role determines the future of the nation. Even though we are experiencing hardships, education must continue as the pulse of the nation's civilisation. We must always adhere to health protocols by implementing 3M (wear masks, handwashing, and maintaining a safe distance). Hopefully the BSU PTK Non-PNS in the Religious Affairs ministry domain will be useful to increase the resiliency of our teachers too," he concluded.

A similar programme has benefited PTK Non-PNS under the Ministry of Education and Culture.

As the handling of COVID-19 and the national economy recovery should be closely aligned, Indonesian President Joko Widodo issued Presidential Regulation (Perpres) No. 82 of 2020 on the Covid-19 Handling and National Economic Recovery Committee (KPCPEN) on July 20 2020.

The KPCPEN's priorities are INDONESIA SEHAT - people should be safe from COVID-19, with health services reform as part of the equation; INDONESIA BEKERJA, empowerment and acceleration of employment; and INDONESIA TUMBUH, national economy recovery and transformation.

National Bonds announces a 20% increase in regular savers in 2017

National Bonds Corporation, the shari'ah-compliant savings and UAE investments company, has announced a 20% increase in regular savers in line with its commitment to increase financial literacy and happiness in the UAE. The company also reported up to 4% returns for National Bonds savers for a second year in row.

Mohammed Qasim Al Ali, CEO, NBC said: “We are passionate about increasing savings across the UAE and we measure our success on the number of savers year on year. We incentivise customers to save with us through competitive returns and we are very pleased to report an increase in regular saving by 20% in 2017. This is reflective not only of the growing confidence in National Bonds, but also the growing appetite among UAE residents to invest in their future.

"At National Bonds, we are committed to helping UAE residents save and as the latest results highlight, it pays to save with us. In fact, bondholders who have invested with us since inception have seen nearly 52% in total returns to date - a significant return on investment.”

Looking at annual returns, including annual profits and donated rewards, holders of Saving Bonds valued at more than AED50,000 received on average a return of 1.64%, while those with bonds valued at AED150,000 or more benefitted from an average return of 2.43%. Customers who had a balance of over AED350,000 in their accounts were rewarded with an average return of 3.62%.

National Bonds’ term sukuk also reported strong results for customers last year, with returns ranging from 1.75% up to 4% for customers with a three-year term. Additionally, holders of regular saver bonds saw an average annual return of 2.82%.

National Bonds also reported, in line with the overall growth of private wealth in the UAE, an increase to the numbers saving with their Prestige Programme. As private wealth continues in the UAE and wider region, 2017 saw an 8% increase in the account balance of Prestige customers. Interestingly, there was a 23% increase in customers who joined Prestige last year, 5% of which were new to National Bonds.

“Last year was a great year for our business. Not only did we witness an increase in returns for a second consecutive year, but we also witnessed stable growth across our business. In 2017, we remained bullish in our investment strategy, but always with our stakeholders’ interest in mind. This, in turn, produced strong results which we look forward to continuing into 2018,” said Al Ali.

National Bonds’ investment strategy remained robust in 2017, with a continued focus on capital preservation for customers and the long-term economic development of the UAE. Low-risk investments remained a key priority in 2017, with the aim of protecting the interests of bondholders and shareholders. This approach has ensured year-on-year increases in shareholder equity.

An example of successful investment by National Bonds can be seen through its retail arm, National Properties. In 2017, National Bonds delivered the second phase of Motor City Green Community. Also known as Casa Familia Villas, this project quickly became one of Dubai’s most sought-after residential addresses and was completed within the year, two months ahead of schedule.

Other areas of success in 2017 include National Bonds’ commitment to sustainability. Last year, National Bonds signed a deal with Dubai Electricity and Water Authority (DEWA) in Q417 to set up an AED2.5 billion green fund. The ground-breaking fund will be the first major green fund with a dedicated arm for shari'ah-compliant investments. The fund’s aim is to invest in multiple types of projects including renewable energy, retrofitting existing fossil fuel-based energy systems, energy efficiency and balancing technologies between electricity demand and supply.

Al Ali concluded: “This is a clear testament to the company’s robust financial strategy, clear vison for the future, as well as the hard work and dedication of our people. We have a number of exciting launches and investment opportunities in the pipeline and I am personally excited for what 2018 has to offer.”

AM Best gives Qatar Islamic Insurance Company B++ financial strength rating

AM Best has affirmed the B++ (good) financial strength rating and bbb+ long-term issuer credit rating for Qatar Islamic Insurance Company (QIIC). The outlook of these ratings is stable.

The ratings reflect QIIC’s balance sheet strength, which AM Best categorises as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management (ERM).

QIIC adopts a hybrid takaful model, whereby the shareholders’ fund (SHF) charges the policyholders’ fund (PHF) a wakalah fee based on gross written contributions (GWC) and a mudarabah fee based on investment income. QIIC’s ability to accumulate surpluses within the PHF whilst regularly distributing surplus back to policyholders supports the sustainability of the takaful model.

QIIC has a track record of strong operating and technical profitability, highlighted by a five-year average (2013 - 2017) combined ratio of 79% that has remained very stable over recent years. While there has generally been a good balance of earnings between technical and investment income, a volatile investment environment in Qatar has meant investment returns have declined over the past four years. During 2017, the company reported net profit of QAR62 million, equivalent to a sound return on equity of 13%.

Although the company is concentrated on its domestic market of Qatar, the company maintains a niche market position as an established provider of shari’ah-compliant products and a strong reputation that is partially attributable to the company’s track record of distributing surpluses back to its policyholders. The company also benefits from being a member of the National Insurance Consortium, which provides QIIC access to sizable government infrastructure contracts. QIIC reported modest premium growth in 2017, as the company reported a 1% increase in GWC to QAR317 million, compared with 2016.

IFSB shares Islamic Financial Services Industry Stability Report for 2017

The Islamic Financial Services Board (IFSB) has released the 5th edition of its annual Islamic Financial Services Industry Stability Report highlighting developments in the growth, stability and other aspects of the Islamic financial services industry (IFSI).

The 2017 report finds that despite subdued economic growth conditions and the impact of new geopolitical developments, the global IFSI has been able to sustain its total assets value at approximately US$1.9 trillion in 2016. While the overall performance of Islamic finance in 2016 has been satisfactory, the IFSB says that the industry needs to build long-term resilience amidst the prevailing era of weak growth and uncertainties.

Acting Secretary-General of the IFSB Zahid ur Rehman Khokher, said, “The issuance of the Islamic Financial Services Industry Stability Report 2017 comes during a time of growing external challenges for the financial system, including lower economic growth outlooks and global political uncertainties. While the Islamic financial services industry has, in many respects, withstood the challenging operating environment, it has however moved away from the double-digit growth trajectory witnessed in previous years. This slowdown underscores the importance, more than ever, of strengthening the resilience of the Islamic financial system and addressing internal weaknesses and vulnerabilities through appropriate policy responses.”

A key feature of the 2017 report is that data from the IFSB’s Prudential and Structural Islamic Financial Indicators (PSIFIs) database has been utilised for the first time in the report’s Islamic banking sector analysis. The use of this data has enriched the report by providing:

• Strengthened reliability of data as it is sourced directly from regulatory and supervisory authorities;
  wider geographical coverage, with data covering 18 countries in comparison to 10 countries analysed in the 2016 report;
• Holistic coverage of each jurisdiction as the PSIFIs data covers the aggregated domestic Islamic banking sector including data of Islamic banking windows. Previous reports had used sample data from selected full-fledged Islamic banks; and
• Additional financial indicators, e.g. value of shari'ah-compliant financing by economic sectors, that are included in the PSIFIs database.

Amidst a challenging external environment brought on by the changing policy directions and uncertainties in the global economic landscape, institutions offering Islamic financial services (IIFS) have continued to grow and gain market share, particularly in their home jurisdictions, the report said. However, the previously observed double-digit growth rate of the global IFSI has slowed down to single-digit growth.

The report shares the findings of an IFSB study on stress testing of Islamic banks conducted in early 2017 to identify the connections between macroeconomic and financial variables of Islamic banks to provide a preliminary idea of plausible quantitative dimensions that can be used for stress testing of Islamic banks. The empirical findings provide an indication of important linkages between four macroeconomic variables; interest rates, unemployment, real estate prices and oil prices – and Islamic banks’ non-performing financing (NPF) ratio, deposits, financing and assets.

The report also provides an insight into fintech in the Islamic finance space, the development of which poses a number of legal, regulatory and shari'ah issues. Discussions on fintech focus on two areas that have attracted much attention: the distributed ledger technology, which is at the core of cryptocurrencies (e.g. Bitcoin) and smart contracts, and multi-sided Internet platforms, which are the basis of crowdfunding.

The IFSI Stability Report 2017 provides an in-depth analysis of the performance and stability of the IFSI in 2016, focusing on the three main sectors, banking, capital market and takāful:

Growing market shares of Islamic banks

The developments in the Islamic banking sector in 2016 were more dynamic than implied by the moderate growth rate observed in total banking sector assets, illustrated by a shift in the regional composition of global assets and reasonable levels of growth in assets, financing and deposits of Islamic banks in most jurisdictions. More notably, the market shares of Islamic banks increased in 18 jurisdictions, providing a strong indication of a growing acceptance of Islamic finance in jurisdictions with dual financial systems. Jurisdictions where Islamic finance has achieved domestic systemic importance also increased to 12 in the past year.

Sustained returns in most jurisdictions

The Islamic banking sector has generally sustained its return on assets and return on equity as a whole in the last two years, but there are considerable differences on jurisdictional levels as some markets have witnessed declines in returns. With respect to asset quality, while the non-performing financing (NPF) ratios of the IFSI globally and for most jurisdictions have decreased, a few jurisdictions exhibited higher NPF rates.

The capitalisation in the industry at a Tier-1 level was 9.71% in 1H16, remaining above the Basel III/ IFSB-15 minimum regulatory requirements of 6%. However, an area of continued concern is the short-term liquidity health of Islamic banks. Overall, conditions varied significantly between countries, with each jurisdiction exposed to its unique set of domestic conditions.

The Islamic capital market performed better in 2016 than in 2015

2016 saw an increase in sukūk issuances, while Islamic stocks continued to generate profit. The volume of annual ṣukūk issuances reached US$75 billion in 2016, bringing the volume of outstanding ṣukūk close to US$320 billion, with 79% of the issuances originated from sovereigns, including government-related entities (GREs) and multilateral organisations, while only 21% were corporate issuances.

Shari'ah-compliant equities and Islamic funds

In contrast to previous years, shari'ah-compliant equities generated lower returns in comparison to conventional equities. The equity markets suffered in 2015 and during most of 2016 due to political uncertainties, slow growth, depressed oil prices and volatile commodity prices. While the unexpected election outcome in the US triggered a stock market rally in the latter part of 2016, Islamic equity and fixed income funds benefited from the good performance of the Islamic equity indices and the improved ṣukūk yields. Positive results of Islamic commodity funds are mainly due to an increase of the oil price at the end of the year.

High growth in the takāful sector

The global takāful industry recorded a growth in contributions of 12% while conventional insurance premiums only grew by 4%. Despite the high growth rate, takāful is by volume still a small industry with total contributions of US$25 billion and 305 takāful and retakāful operators plus windows. The GCC accounts for 47% of the contributions and 31% of the takāful operators, followed by MENA (excluding GCC) with 33% of contributions and 22% of the operators, and Asia with 18% of contributions and 15% of the operators. The insurance/takāful penetration in most Organization of Islamic Cooperation (OIC) countries is relatively low. While this indicates untapped market potential, there is strong competition for market shares. As many takāful undertakings lack scale for efficient operations, it is expected that the consolidation of the industry through mergers and acquisitions will continue in Southeast Asia and the GCC.

Global outlook for the IFSI

The outlook for the global IFSI is generally positive, with concerns that fiscal deficits will contain spending by governments, which could have an adverse impact on Islamic banks. While the industry has shown resilience and satisfactory performance in 2016, the era of weak growth and external uncertainties facing the industry indicates the growing need for the global IFSI to build long-term resilience.

Interested?

The IFSI Stability Report 2017 is available for download

IFSB PSIFIs project to be extended

The growth of Islamic finance has led to its emergence as a systemically important sector in an increasing number of economies in the Arab speaking countries, as well as in Asia, said Jaseem Ahmed, Secretary-General, Speech by the Secretary-General of the Islamic Financial Services Board (IFSB) at the AMF-IFSB-IMF Conference on Soundness Indicators for Conventional and Islamic Finance.

Jaseem noted that the International Monetary Fund (IMF) had recently approved the preparation of proposals for operationalising policy support to Islamic finance jurisdictions.
The Executive Board of the IMF held its first formal discussion on Islamic banking (IB) on February 3, and adopted a set of proposals on the role that the fund should play in this area. These proposals, and the case for adopting them, are contained in the staff paper Ensuring Financial Stability in Countries with Islamic Banking and the accompanying country case studies paper.

According to the IMF, IB is present in more than 60 countries and has become systemically important in 14 jurisdictions. "IB involves operations, balance sheet structures, and risks that differ from their conventional banking counterparts. Accordingly, there is a need for putting in place an environment that promotes IB financial stability and sound development, including legal, prudential, financial safety nets, anti-money laundering and countering the financing of terrorism (AML/CFT), and liquidity management frameworks," the IMF said in a statement.

As the number and complexity of IB-related issues arising during IMF country surveillance and the demand for policy advice and capacity development in this area have increased, the IMF's Directors have called for stronger efforts to establish a policy framework and environment that promote financial stability and sound development of Islamic banking, particularly for countries in which Islamic banking has become systemically important.

IMF Directors expressed support for staff's proposed approaches to developing and providing policy advice on Islamic banking-related issues in the context of Fund surveillance, programme design, and capacity development activities. They also called for staff's continued support to the work of the relevant international standard setters and other international bodies to help address current gaps in the international regulatory framework for Islamic banking. 

Directors saw merit in considering a proposal to formally recognise the Core Principles for Islamic Finance Regulation for Banking, prepared by the IFSB as a standard under the Fund/Bank Standards and Codes Initiative. Directors also called for full implementation and consistent application of the standards, and for strengthening supervisory capacity with respect to Islamic banking.

Directors emphasised the importance of having in place robust Islamic banking-specific resolution regimes and other financial safety nets for countries in which Islamic banking operates. Noting the slow progress achieved in these areas, they underscored the importance of additional work in collaboration with relevant international bodies on the design of legal regimes and institutional arrangements for effective Islamic banking resolution, deposit insurance schemes and AML/CFT, as well as adapting the conventional lender-of-last-resort framework to cover Islamic banking.

Directors agreed that the availability of high-quality liquid assets for Islamic banking is important for effective liquidity management and financial stability, and for the sustainable development of the Islamic banking industry. In this context, they called for increased efforts to deepen the government sukuk markets. Directors also noted the importance of having in place relevant central banking liquidity facilities and instruments.

Directors agreed that the emergence in recent years of hybrid financial products in Islamic banking, which replicate the relevant aspects of conventional finance, may have brought some benefits, but also raise financial stability concerns. Such concerns include the emergence of new complex risks, the applicability of existing prudential regimes, governance and consumer protection concerns, and reputational risk. Directors encouraged additional work, by staff and other relevant international bodies and standard setters, to better understand the nature of these activities and how they can be effectively regulated.

"A key aspect of the proposals is that they will recommend the recognition of the IFSB’s Core Principles for Islamic Finance Regulation of the Banking Sector (IFSB-17), under the IMF/WB Standards and Codes Review, Jaseem said. "The IFSB welcomes these developments, which point towards an international recognition of Islamic finance that is commensurate with its importance and significance to large communities of human beings in the world today, and to financial and economic stability internationally."

Islamic finance has a system of ethics, is grounded on the real economy and on risk sharing, and avoids harmful activities, Jaseem noted, but also has risks such as those resulting from uneven development of Islamic financial markets and financial instruments.

"The external vulnerability is faced by us all: namely, that the performance of the Islamic financial system cannot be isolated from developments in conventional finance and in the global economy. We are vulnerable to external economic, financial and monetary shocks and these seem to be bigger or more volatile than ever. These vulnerabilities remain with us, they are real and they bring large risks with them which must be identified, made transparent, and managed at both the micro and macro levels," he said.

To determine if the industry can withstand turbulence arising from both internal and external sources of risk, a well-developed global database with reliable time series data is required for macroprudential oversight. The Financial Soundness Indicators (FSIs) from the IMF and adapted by the IFSB are just such a tool. FSIs are macroprudential indicators of the condition of the entire system that supplement the traditional microprudential measures used by bank supervisors. In 2004, the IFSB launched a global database of Prudential and Structural Islamic Financial Indicators (PSIFIs), which are the measures of the aggregate strength or vulnerabilities of the Islamic financial system.

The PSIFIs consist of 19 core and eight additional core indicators, compared to the IMF’s FSIs 12 core and eight additional core indicators. PSIFIs data are similar to the FSIs, aggregated banking sector data of an individual country. As almost all of the core indicators on asset quality, earnings, leverage, liquidity and sensitivity to market risks are similar to FSIs, the indicators permit a comparison with the IMF’s FSIs for a country’s entire financial system.

These PSIFIs would also facilitate comparisons between conventional banks and institutions offering Islamic financial services as part of a peer group exercise on the effectiveness of the application of the IFSB capital adequacy formula.

In phase I, the IFSB Secretariat established a Task Force for the project and undertook the preparation of a Compilation Guide which was adopted by the IFSB Council in March 2007. The IMF, Asian Development Bank (ADB) and the Islamic Development Bank (IDB) supported the PSIFIs from the beginning, and are important members of this and subsequent Task Forces.

This was followed in Phase II by a pilot study of the compilation of data through which the IFSB developed a standardised reporting template in which four member countries – namely Indonesia, Malaysia, Pakistan and Sudan – participated.

In 2014, the IFSB launched the third phase of the PSIFIs project with the aim of achieving, by 2016, the first dissemination of data, as well as a further revision of the Compilation Guide, particularly to align it with the developments of Basel III. After the successful launch of PSIFIs data on 27 April 2015, the IFSB has been regularly disseminating macro-level data collected from 17 IFSB member countries. The database is accessible to the public.

"Overall, the PSIFIs member countries collectively hold more than 85% of global Islamic banking assets. Amongst these countries are eight economies which are also members of the Arab Monetary Fund (AMF), and in which the Islamic finance sector is of systemic importance – in that it accounts for more than 15% of total banking sector assets," said Jaseem.

He also disclosed that a fourth phase of the PSIFIs project, to further extend the coverage of the database to additional countries that have a stake in the Islamic banking sector, has been approved.
Jaseem added that the Bank of England has recently confirmed that it will join the PSIFIs project.

"Today, the PSIFIs database comprise a set of well-developed and tested Islamic finance statistics reflecting sharī`ah-compliant accounting practices and regulatory standards that serve the purpose of better oversight by regulatory and supervisory authorities and the global surveillance community, as well as the analytical needs of the IFSB which are shared with our international stakeholders through the IFSB’s Annual Islamic Financial Services Industry Financial Stability Report," he said.

"The national and international members of the IFSB PSIFIs Task Forces have contributed enormously to the development and the streamlining of the reporting formats, and to the coming on line of this project. It will be important to continue this collaboration, and to develop both formal and informal networks of experts and knowledge centres, as we jointly attempt to better understand and control both domestic and cross-border sources of risks emanating from interconnected financial and economic systems," Jaseem said.

"Our goal should be further collaboration among international and national organisations so as to better measure these interconnected elements which can support better contingency planning and timely policy response by the authorities."

WIBC 2016 will focus on economic uncertainty

The 23rd World Islamic Banking Conference (WIBC) will focus on the theme of Economic Uncertainties: Vigilance & Growth this year. The event guides the global Islamic finance and banking industry, and aims to enable Islamic finance to converge, strengthen and develop into an ecosystem whilst equipping leaders with insights to navigate the global financial system.

Key features for WIBC 2016 include the CEO Power debate, involving powerhouses from the top Islamic financial institutions engaged in key strategic issues facing the industry; a governors’ power table; streams focused on banking leadership opportunities and asset management best practices; thought leadership from strategy consultants; and panel sessions focused on small and medium sized enterprises (SMEs) and entrepreneurship, the impact of innovation in financial technology (fintech); among other topics.

A key focus at WIBC 2016 is identifying ways in which Islamic finance can connect with the broader ethical finance industry and benefit from collaboration with other ethical finance sectors to support their common growth prospects – ESG (environmental, social and governance), SRI (socially responsible investment) and faith-based investing – as well as looking at community banking and microfinance to promote financial inclusion.

Confirmed keynote speakers include:

• Dr Ahmed Abdulkarim Alkholifey, Governor, Saudi Arabian Monetary Agency
• HE Alexander Torshin, State Secretary – Deputy Governor, Central Bank of Russia
• HE Rasheed Mohammed Al Maraj, Governor, Central Bank of Bahrain

The WIBC Leaderboard, a peer-to-peer assessment benchmark based on robust quantitiaive metrics, aims to promote greater transparency within the Islamic banking industry and feeds into the WIBC Awards. The Leaderboard provides industry participants with visual rankings of Islamic banks as compared to their peers at the global, regional and national levels, based on the following financial and governance metrics, using data collated from the ICD Thomson Reuters Islamic Finance Development Indicator and Bankscope:

• Financial stability: Total capital and tier 1 capital ratios, loan-loss reserves (LLR) to gross loans ratio, loan-loss reserves (LLR) to non-performing loans (NPL) ratio, non-performing loans (NPL) to gross loans
• Financial performance: return on average assets (ROAA), return on average equity (ROAE), cost-to-income ratio (CIR), assets growth
• Governance and social responsibility: Financial disclosure index, CSR disclosure

In 2015, WIBC hosted 1,300 delegates and 70 speakers from 50 countries, and witnessed the launch of eight intelligence reports by Thomson Reuters, EY, the National Bank of Kazakhstan, Toronto Financial Services Alliance, Middle East Global Advisors, and the Bank of Khartoum among others.

The team behind WIBC, Middle East Global Advisors, are also the conveners of the Global Ethical Finance Forum, in strategic partnership with the Scottish Government, and the co-organisers of the Responsible Finance Summit, in strategic partnership with Bank Negara Malaysia.

Interested?

The WIBC will be held from 5 to 7 December 2016 at the ART Rotana Hotel, Amwaj Islands, Kingdom of Bahrain. Register

Contribute more event listings to the Suroor Asia events page

Hashtags: #WIBC2016, #23edition, #Islamicfinance

Labuan IBFC begins ASEAN roadshows with session on shari'ah-compliant solutions

Labuan International Business and Financial Centre (Labuan IBFC), Asia Pacific’s midshore international business and financial centre, has launched a series of roadshows across ASEAN.

The Labuan IBFC ASEAN Roadshow 2016 will visit key countries in ASEAN and, for the first time will include events as well as closed door briefings in the emerging economies of Cambodia, Laos, Vietnam and Myanmar. The roadshows have kicked off in Jakarta, Indonesia, will continue through till end-July.

“Our approach to the roadshow this year is distinct as we are targeting business owners in the region looking to internationalise or even regionalise their businesses. We believe that with as businesses embrace higher tax transparency requirements, it would be natural for them to consider to establishing substance in a well-regulated jurisdiction facilitate cross border transactions and investments.” said Danial Mah Abdullah, Chief Executive Officer, Labuan IBFC.

He went on to state that the roadshow will also focus in meeting the wealth management needs in the region, adding that as ASEAN has a large Muslim population, the Jakarta chapter of the roadshow focuses on shari'ah-compliant wealth management solutions.

Themed Innovative Solutions towards Islamic Wealth Management the kickoff masterclass was aimed at Indonesian service providers, intermediaries and high net worth individuals who are looking to better understand shari'ah-compliant wealth management offerings, wealth preservation and succession planning solutions.

Mah, who is also the Deputy Director General of Labuan FSA, said, “What makes Labuan IBFC different is that it was established with the main aim of intermediating crossborder trade and investments in the region. The expectations are that intra-Asia and ASEAN trade and investments will grow, and there is a need for a well-regulated jurisdiction in the region able to facilitate these trades and investments. ”

The masterclass included a presentation on the Labuan International Waqf Foundation, a shari'ah-compliant wealth management tool, which incorporates the element of waqf* (وقف‎) in its structure.

Labuan IBFC is the only jurisdiction in the region offering foundation structures including Islamic foundations with waqf elements built in.

The event also included a panel session titled Opportunity and Challenges: Islamic Wealth Management in Asia with Dr Aida Othman, Director at ZICO Law Shariah Advisory Services, Maikel Sajangbati, CEO and Founder of MaeSa Consulting Indonesia as well as Aderi Adnan, Business Development Director of Labuan IBFC.

The panel focused on the new Islamic wealth management environment in light of more stringent global regulatory requirements, evolving Islamic wealth management strategies amidst changing family legacy mindsets, experiences and cultural differences in Asia.

Interested?

View event details


*Waqf refers to a donation made for a religious, educational or charitable cause.

posted from Bloggeroid

National Bonds survey shows 17% of UAE nationals have takaful insurance

National Bonds, the shari'ah-compliant savings and investments company in the UAE, has announced the latest results of its ongoing financial health check survey*.

Source: National Bonds.

Findings indicate that 36% of UAE nationals save for a major purchase, while 34% save to buy a house and 24% save for retirement. However, only 7% save for their children’s education. As for other nationalities, 37% save to buy a house and 35% for retirement while 18% save for a major purchase and only 10% save for education. 

 
In additional findings, 56% of UAE nationals said they make monthly payments towards personal loans, 32% are settling credit card debts, while 12% are paying off mortgages. As for other nationalities in the UAE, the survey found 50% of the respondents are paying off personal loans, while 38% make credit card payments, and 13% are settling mortgages.

The results also indicate that 20% of UAE nationals among the respondents usually save monthly, as opposed to only 11% of single UAE nationals. Additionally, 52% of UAE-based women from all other nationalities do not have an emergency fund, against 6% of female UAE nationals who do. Further, 17% of UAE nationals said they have takaful insurance, compared to 14% of respondents from all other nationalities said they do.

Mohammed Qasim Al Ali, CEO, National Bonds Corporation, said: “Five months since our last financial health check, we are observing a major shift in our savers’ financial behaviour. We are happy to note that saving for retirement and homes is gaining precedence among customers of all nationalities. However, debts due to personal loans and credit cards remain the biggest challenge. We at National Bonds are well aware that bad habits die hard. This is why we offer a comprehensive financial planning strategy that helps customers achieve a balance between their needs and wants, their budgets and liabilities.”

Highlighting the low numbers of savers with takaful insurance across all nationalities including UAE nationals, Al Ali explained: “The significance of takaful does not only lie in being a means of protection against an uncertain future incurred through job and income loss. It serves as an expression of social and Islamic culture - reflecting its inherent values such as cooperation, solidarity and partnership even while ensuring a safe and sustainable future for all segments of society without discrimination.”

Takaful can also be a key to resolving the problems relating to Emiratisation policies in the private sector, where the advantages are less compared to the public sector. Thus, takaful is an effective alternative that provides financial security to the employee and his family. Takaful insurance is also expected to be one of the main drivers for financing development and ensuring stability of the financial sector.

The CEO of National Bonds also highlighted the debts paid by the majority of savers against personal loans and credit cards and said: “Despite the increased awareness today about the importance of savings and the burden of debt, the credit card culture continues to weigh heavily on many people, draining their income and severely impacting their financial security and the future of their children. The issue of debt is more related to habit than need if we consider the high income levels of individuals and consumption trends in society. This habit is reinforced by excessive consumption associated with earlier economic phases, but the same habits may not be appropriate for the upcoming economic phase if recession and its related challenges continue to adversely impact the global economy.”

National Bonds has created a number of innovative tools to encourage regular saving among bondholders. Of these, the new myPlan Rewards Program launched in August 2015 with the aim of encouraging customers to commit to a monthly savings plan is gaining popularity among bondholders that are mindful of the challenges they might face in the future.

National Bonds advises that financial plans should cover more than just investments, including retirement, taxes, insurance takaful, cash flow and debt management.

*Designed by financial advisors at National Bonds, the financial health check was launched in February 2014 as an online tool to help customers assess their financial status and take corrective action towards achieving a more resilient financial future. To date, the survey has received responses from more than 1,000 customers across cultures and nationalities. Respondents fall within the 26 to 40 age group.

BNM governor lays out success factors for investment accounts

The Islamic Financial Services Board (IFSB) has built a solid global reputation as a prudential standard-setting body for Islamic finance, said Bank Negara Malaysia Governor Tan Sri Dato' Sri Dr Zeti Akhtar Aziz in opening remarks at the IFSB's Meet the Members & Industry Engagement Session in Kuala Lumpur in late January. "The initiatives and milestones achieved by the IFSB have indeed paved the way for jurisdictions across the globe to build a solid foundation for the progressive growth of Islamic finance that is underpinned with stability," she said.

Dr Zeti also observed that the IFSB has made significant advancements in taking forward the recommendations made in the Islamic Finance and Global Financial Stability Report 2010 towards achieving financial stability in the national and the international Islamic financial system. "The effective implementation of the standards issued by the IFSB is key towards promoting the soundness and stability of Islamic financial institution. To enhance this prospect, the IFSB has strengthened its role in facilitating greater jurisdictional preparedness in the adoption of these standards through the provision of technical assistance to its members," she said.

"Malaysia is one of the jurisdictions that has adopted and operationalised the prudential standards and the guiding principles that have been issued for the industry. The implementation of these standards and guiding principles support the regulatory framework that we now have in place in our Islamic financial system."

Dr Zeti said that Islamic banks in Malaysia now have the potential to be better able to pursue their role as investment intermediaries through the offering of investment accounts in addition to the entrenched deposit products. The legal recognition of investment accounts in the Islamic Financial Services Act 2013 (IFSA) differentiates between deposit accounts and investment accounts while offering a new investment avenue, one that is being channelled to finance entrepreneurship, she pointed out.

Dr Zeti highlighted the Investment Account Platform (IAP) that is currently being developed for its growing popularity. The IAP will provide a centralised multi-bank platform as a new financing option for entrepreneurs with viable projects as well as an opportunity for the investing public to finance these projects, she noted.

"It is encouraging that to date, eight Islamic banks are offering investment accounts to their customers. More are expected to follow when the value proposition of such investment accounts, with its unique features and the different target market become better understood. The industry-led communication by the Association of Islamic Banking Institutions Malaysia will contribute towards increasing the awareness of customers on the concept and on the key features of investment account. The latest establishment of a consortium developed by four Islamic banks to develop and operate the IAP which is to be launched next month is also another initiative to advance this new offering," she revealed.

Dr Zeti also listed some of the prerequisites for a successful introduction to the investment account. "In the development of the investment account, it will be essential for Islamic banks, investors and entrepreneurs to embrace the different approaches in the management of the risk and return relationships that are embedded in the variations of the shari'ah contracts used in such investment accounts. These relationships need to be well understood by the parties involved and which are aligned with clear contractual and operational requirements.

"The IFSB has an important role in not only providing guidance but also in initiating the convergence of the different practices between IFSB members with regard to the treatment of the investment account - also referred to as profit sharing investment account (PSIA) - in the IFSB standards. More in-depth work can also be explored by the IFSB on the prudential requirements for the investment account to further ensure a conducive environment for such risk-sharing offerings," she said.

The global Islamic financial system is now operating at a time when the international economic and financial environment has become immensely more challenging. New risks that are more complex, with more profound systemic implications are emanating with the increasing forces of financial liberalisation, globalisation, technological advancement, intensified competition, financial innovation and the internationalisation of Islamic finance. Cumulatively, these developments necessitate greater prudential regulation and supervisory oversight to ensure a resilient and sustainable financial system.

Dr Zeti said the role of the IFSB remains instrumental to the industry, especially internationally, and called for members to continue their support for the IFSB. "Greater concerted efforts by members to consistently adopt and implement the prudential standards issued by the IFSB will not only contribute towards preserving financial stability but it will also enhance regulatory harmonisation across jurisdictions," she said.

"Malaysia, as the host of the IFSB will continue to be committed to support its development and its potential as a prudential standard-setting body in the international financial system."

Interested?

Read the full speech

IFSB to hold roundtable on retakaful in January 2016

The Islamic Financial Services Board (IFSB) is organising a roundtable about retakaful on 10 January 2016 in Manama, Bahrain. The Roundtable Discussion on Retakāful (Islamic Reinsurance) aims to discuss the issues contained in the recently-issued IFSB Exposure Draft on Guiding Principles for Retakāful (Islamic Reinsurance) (ED-18). The event is hosted by the Central Bank of Bahrain. 

ED-18 aims to provide the regulatory and supervisory authorities (RSAs) and takāful industry stakeholders with guidance relating to retakāful. The draft document was issued by the IFSB on 5 November 2015 for a two-month public consultation period.

ED-18 highlights the distinguishing features of the various retakāful models used for inward and outward retakāful arrangements. It also identifies the challenges that require attention of regulatory and supervisory authorities pertaining to the regulation and supervision of retakāful activities. The objectives of ED-18 include: 

• To provide a basis for RSAs to set rules and guidance on the operational framework of entities undertaking inward retakāful activities; 
• To outline a basis for RSAs to supervise takāful and retakāful undertakings’ use of outward retakāful arrangements; and 
• To suggest recommended best practices for retakāful and takāful operators and their RSAs to help address regulatory issues concerning retakāful. 

The Roundtable Discussion on ED-18 aims to invite greater engagement, and garner feedback, from key industry stakeholders on the Exposure Draft prior to its final submission to the IFSB Council in April 2016 for adoption. It is the second such session to allow feedback on the draft ED-18 document. The first was a Public Hearing held in Kuala Lumpur, on 30 November 2015.

Confirmed speakers from Malaysia include Dr Mohamed Rafick Khan Abdul Rahman, Chief Executive Officer, Munich Re Retakāful; Dr Hamim Syahrum Ahmad Mokhtar, Deputy Director, Financial Surveillance Department, Bank Negara Malaysia; and Dr Sami Guellouz, General Manager, B.E.S.T Re Family. Other speakers include Scott Lim, Associate Director, Dubai Financial Services Authority; Moch Mochlasin, Directorate of Sharia NBFI, Financial Services Authority, Indonesia; and Naveed Shahid, Head of Life & Health, Hannover Re, Bahrain. 

Interested?

Participation is open to all RSAs as well as players in the takāful and retakāful industries. Register

IFSB shares second Strategic Performance Plan

The Islamic Financial Services Board (IFSB) Council has approved the second Strategic Performance Plan (SPP), for the years 2016 to 2018. The new plan builds on the previous SPP and the lessons learnt in executing it, along with the recognition of the need for the IFSB to evolve in response to changes in its operating environment.

The four strategic key results areas identified in the SPP 2016-2018 are:

• Formulation and issuance of prudential standards and studies for the regulation of the Islamic financial services industry
• Facilitating the implementation of prudential standards and capacity development
• Increasing awareness and knowledge sharing
• Enhancing cooperation with Islamic finance stakeholders

The SPP 2016-2018 aims to continue the IFSB’s focus on its core mandate, the formulation and facilitation of prudential standards for the banking, takāful, and Islamic capital Market sectors with an overarching objective of ensuring the stability and resilience of the Islamic financial services industry (IFSI).

These prudential standards are benchmarked against those issued by global standards bodies such as the Basel Committee on Banking Supervision (BCBS), International Association of Insurance Supervisors (IAIS) and International Organization of Securities Commissions (IOSCO), but also include standards that are unique to Islamic finance. The SPP 2016-2018 also focuses on the development of the Islamic financial services industry and its growing interconnectedness with global finance.

Interested?

More information on the SPP 2016-2018 will be available on the IFSB website in due course.

IFSB announces new members

The Council of the Islamic Financial Services Board (IFSB) has approved the admission of six organisations into the IFSB membership. These include one supervisory authority as an Associate Member, and two supervisory authorities as well as three financial institutions as Observer Members.

IFSB membership is available in three categories: Full Member, Associate Member and Observer Member. The Full Membership, which is the sole membership with voting rights, is available to the financial sector supervisory authorities of each sovereign country.

The new members are the Bank of England as an Associate Member, as well as the following Observer Members:

National Bank of the Kyrgyz Republic
Securities and Exchange Commission of Pakistan
Abu Dhabi Islamic Bank, Egypt
Amana Bank, Sri Lanka
Ziraat Katilim, Turkey

The Council has also upgraded the National Bank of Kazakhstan from an Associate to a Full Member. This brings the membership of the IFSB Council to 23, consisting of central bank Governors from 22 countries, plus the President of the IDB. 

To date, the 189 members of the IFSB consist of 65 supervisory and regulatory authorities from the banking, capital markets and Islamic insurance (takāful) sectors from 47 jurisdictions, as well as eight international intergovernmental organisations, and 116 market players (financial institutions, professional firms and industry associations).

Interested?

The full list of IFSB members is available on the IFSB website 

New Islamic hedging product standard introduced

The International Swaps and Derivatives Association (ISDA) and the International Islamic Financial Market (IIFM) has announced the publication of a new Islamic hedging product standard, the ISDA/IIFM Himaayah Min Taqallub As‘aar Assarf (Islamic cross currency swap) for use in Islamic hedging transactions. The announcement was made at the IIFM 33rd Board of Directors meeting and workshop hosted by The National Commercial Bank at its Riyadh regional office.

The published confirmation template is part of an ISDA and IIFM plan to provide the Islamic finance industry with documentation and product templates to manage risk in transactions arising mainly from currency and profit rate mismatches. The Islamic Cross Currency Swap (ICRCS) template falls under the ISDA/IIFM Tahawwut (hedging) Master Agreement, a framework document that contains general terms and conditions, and early termination and closeout netting provisions between transacting parties.

One of the objectives of entering into a himaayah min taqallub as‘aar assarf would be to enable a party to raise funds through a shari’ah-compliant contract in one currency for a certain period of time against a shari’ah-compliant contract in another currency. Profit rate, tenor and amount are all agreed between the two parties at the start of the transaction. It is used to manage and mitigate currency and rate risks associated with investments, and is not intended for speculation.

“With the expansion of Islamic finance into new territories and an increase in cross-border activities, certain transactions are being exposed to fluctuations in currencies and rate-of-return mismatches. IIFM has been playing a pioneering role in the Islamic hedging segment and, at an early stage, undertook the challenge of developing global standards in collaboration with ISDA. I am confident our ongoing efforts will play a critical role in shaping the industry, particularly in view of new regulations being introduced in G-20 economies,” said Khalid Hamad, Chairman of IIFM.

“This is the latest in a series of product documentation releases aimed at standardizing the Islamic hedging market and helping participants to effectively manage their risk,” said Scott O’Malia, ISDA’s Chief Executive.

“The ICRCS standard has given the industry another standardised template for risk mitigation providing robust legal documentation, shari’ah harmonisation and sound operational practices. We are now seeing an increase in the utilisation of the ISDA/IIFM standard both among institutions and in particular jurisdictions,” said Ijlal Ahmed Alvi, Chief Executive Officer at IIFM.

Thomson Reuters integrates Zawya Financial Products with Eikon

Thomson Reuters has fully integrated Zawya Financial Products into Eikon, its flagship desktop for financial services professionals. Through the Zawya integration, Eikon users will have access to coverage of Islamic markets globally, including a database of companies working in the Islamic finance space and a database of shari'ah scholars.

Current users of Zawya Financial Products will be upgraded to Thomson Reuters Eikon so that they can benefit from Eikon’s broader global content coverage as well as its analytical tools. They will also receive an Eikon Messenger account, allowing them to connect and communicate with over 250,000 verified financial professionals in more than 170 countries.

“We’ve long offered deep and broad coverage of MENA markets across a wide spectrum of content sets and data types,” said Nadim Najjar, MD, Middle East and North Africa, Thomson Reuters. “With the integration of Zawya Financial Products into Eikon, we’re empowering both local and international users with new insight into the region, covering a much broader spectrum of non-listed companies. This demonstrates our commitment to connecting and enabling the local and international financial community with leading edge information and tools, helping them find the right business opportunities across the MENA region.”

The new content in Eikon includes detailed profiles of the top companies in the MENA region, as well as data on private equity funds and deals, mergers and acquisitions, bonds, funds and IPO activity. It also covers live news and comprehensive research. A depository of shari'ah and legal documents will also be accessible in Eikon, including the Accounting and Auditing Organization for Islamic Financial Institutions’ (AAOIFI's) standards which govern the Islamic finance industry, fatawa (religious rulings) by leading Islamic banks and shari'ah boards, Islamic banking regulations in different jurisdictions, as well as product structuring guidance notes certified by shari'ah boards.

IFSB fleshes out PSIFI database

The Islamic Financial Services Board (IFSB) has released a second set of its Prudential and Structural Islamic Financial Indicators (PSIFIs) from 16 member countries, dating from December 2013 to December 2014.

Secretary-General of the IFSB Jaseem Ahmed said, “In the context of the heightened awareness of vulnerability of all financial systems to a range of risks, the PSIFI provides a new tool for monitoring the soundness and stability of Islamic finance.

"The support of multilateral organisations – such as the IMF, ADB and IDB – have greatly assisted the progress on this project. It is our aim to continue to expand the scope of the PSIFI to include the participation of new jurisdictions, as well as expansion of data to the Islamic capital market and takāful sectors of the industry.”

PSIFIs aim to provide data on the financial soundness and growth of the Islamic banking systems in participating IFSB member jurisdictions. The first set of data was released on 27 April 2015 covering the period up to December 2013. The second release adds the indicators for the four quarters of 2014, with necessary adjustments and revisions to the earlier data set. It thus provides more complete data than the earlier release as many member jurisdictions have improved their data collection and consolidation framework for the Islamic banking industry in line with the requirements of PSIFI project.

The Task Force on PSIFIs – which includes representatives from 16 member jurisdictions as well as international organisations such as the IMF – updated some indicators after the first release to enhance their clarity and consistency across jurisdictions. In the new release, a number of jurisdictions have also started reporting of the data on macro-prudential indicators such as assets held by domestic systemically important banks, leverage ratio, as well as liquidity coverage ratio (LCR).

The countries participating in this project are: Afghanistan, Bahrain, Bangladesh, Brunei, Egypt, Indonesia, Iran, Jordan, Kuwait, Malaysia, Nigeria, Oman, Pakistan, Saudi Arabia, Sudan, and Turkey.

The IFSB is now collecting data for the first two quarters of 2015 which will be targeted for dissemination in Q1 of 2016.

Interested?

The complete PSIFI Database, including metadata, is available on the PSIFI portal at the IFSB website

Read the IFSB PSIFI Brief for more background \

Labuan IBFC reports strong performance for Islamic finance in 2014

Labuan International Business and Financial Centre (Labuan IBFC), Asia Pacific’s midshore international business and financial centre, reported strong performance across all financial sectors in 2014, including banking, insurance, leasing, wealth management and Islamic finance, with 12.3% increase in new company registrations compared to the previous year.

The organisation notes that 70% of companies registered in Labuan IBFC originate from Asia, with 57% from Southeast Asia, mainly Indonesia, Malaysia, Singapore and Thailand.

“Labuan IBFC has its strengths in terms of its proximity to strategic Asian markets and sound regulatory framework, with simple as well as competitive tax system. With our balanced supervisory and regulatory framework coupled with our strategic location in the heart of Asia Pacific, we believe Labuan IBFC stands out as the ideal ‘midshore’ jurisdiction from which to base regional business operations for both trading and investment purposes,” said Danial Mah Abdullah, Chief Executive Officer at Labuan IBFC.

In the wealth management sector, Labuan IBFC foundations are increasingly used as wealth preservation solutions. There was an almost 40% increase in the number of Labuan IBFC foundations established in 2014 compared to the previous year, with 73% of them originating from Asia.

While wealth management is one of the core offerings of Labuan IBFC, the business and financial centre also carries out all aspects of business and financial activity ranging from banking and insurance to Islamic financial services.

IFSB plans workshops for banking, takaful and the Islamic capital market

The Islamic Financial Services Board (IFSB) will be organising three FIS workshops for banking, takaful and the Islamic capital market in October and November 2015 in Kuala Lumpur, Malaysia. 

The workshops are designed to enhance participants’ understanding of the respective standards and guiding principles applicable to each sector. The workshops also aim to assist the participants in the practical application of the issues addressed in the particular standard through case studies, group exercises, and other interactive tools; and to promote the sharing of experiences among regulators and market players on the implementation of the respective IFSB standards. The organisation invites all regulatory and supervisory authorities from among IFSB member countries to participate.

FIS workshop for the Islamic capital market sector

19 to 21 October 2015

This workshop covers:

• Introduction to Islamic capital markets 
• Sharing of country experiences on the strategies and policies for developing vibrant Islamic capital markets
• Revised capital adequacy standard for institutions offering Islamic financial services (IIFS) (IFSB-15)
• Guiding principles on shari'ah governance systems for IIFS (IFSB-10) and Guiding principles on governance for Islamic collective investment schemes (ICIS) (IFSB-6)

FIS workshop for the takaful sector 

19 to 21 October 2015
This workshop covers: 

• Introduction to takaful
• Sharing of country experiences on the strategies and policies for developing a robust takaful industry
• Standard on risk management for takaful undertakings (IFSB-14)
• Standard on solvency requirements for takaful undertakings (IFSB-11), 
• Guiding principles on shari'ah governance systems for IIFS (IFSB-10) and 
• Guiding principles on governance for takaful undertakings (IFSB-8).

FIS workshop for the banking sector

16 to 20 November 2015

This workshop covers: 

• Revised guidance on key elements in the supervisory review process (IFSB-16) 
• Guiding principles on shari'ah governance systems for IIFS (IFSB-10) 
• Guidance note on quantitative measures for liquidity risk management (IFSB-6) 
• Recent developments in the supervisory review process framework and liquidity risk management at the global level

Interested?

Contact Hamizi Hamzah at hamizi at ifsb.org.

Indonesia's OJK and Islamic Development Bank agree to collaborate on research, training, Islamic financial services

Indonesia’s Financial Services Authority (Otoritas Jasa Keuangan, OJK) have signed a memorandum of understanding (MoU) with the Islamic Development Bank (IDB) to promote cooperation between the two institutions. The MoU was signed between OJK Chairman Dr Muliaman Hadad and IDB Group Chairman, Dr Ahmad Mohamed Ali.

The MoU aims at enhancing existing cooperation between OJK and IDB in the areas of research, training and advisory services, Islamic financial services, and exchange of expertise and knowledge with other Indonesian entities and private sector institutions, as well as establishing a special center of excellence for microfinance under OJK in Jakarta.

Dr Muliaman said the development further consolidates the long standing partnership between OJK and IDB while Dr Ahmad noted that there have been over four decades of extensive cooperation between IDB and the Republic of Indonesia as a founding member. The IDB Group Chairman added that cooperation with OJK will pave the ground towards materialising IDB’s top priority development programmes in Indonesia.

UAE Financial Markets announce Eid holiday

The Eid al-Fitr holiday for UAE financial markets will begin on 29 Ramadhan (16 July), and trading will resume on 4th Shawwal, reported the Emirates news agency WAM.

This was announced by the Securities and Commodities Authority based on a circular issued by the Federal Authority for Government Human Resources, FAHR, on the holidays for Eid al-Fitr.

posted from Bloggeroid

IFSB, INCEIF renew cooperation agreement

The Islamic Financial Services Board (IFSB) and INCEIF – The Global University of Islamic Finance have renewed an agreement to facilitate international cooperation between the two organisations to provide relevant activities relating to capacity building and awareness promotion in Islamic finance. The Memorandum of Understanding (MoU) was signed on the sidelines of the 12th IFSB Summit in Almaty, Kazakhstan on 19 May.

This mutual co-operation aims to strengthen the efforts of the two institutions in promoting an exchange of information, undertaking research, development, training and education in the Islamic financial services industry. More specifically, the MoU identifies the following areas of cooperation between the IFSB and INCEIF: 

• Jointly exploring and undertaking various research issues concerning Islamic financial services industry. 
• Providing reciprocal staff development and exchange programmes. 
• Building awareness among the industry players through jointly conducting learning and awareness programmes including among others: conferences, seminars, workshops, roundtables, trainings (including custom-designed learning and training programmes). 
• Cooperating in providing technical assistance to facilitate the implementation of the IFSB standards and to assist in building the necessary financial infrastructure for development of a sound and stable Islamic financial services industry. 

Under the first MoU, signed in 2012, the IFSB and INCEIF successfully held a series of six Executive Forums (EF) covering topics in Islamic finance. The IFSB-INCEIF Executive Forums on Islamic Finance aim to provide a platform for industry’s global leaders to discuss emerging issues facing the global Islamic financial services industry with an emphasis on issues related to supervision and prudential regulation at the national and international levels.

The next Executive Forum on Islamic Finance, themed Building Momentum for Islamic Liquidity Management, will be held 3 to 4 June 2015 in Kuala Lumpur, Malaysia.