Brunei's Local News - Brudirect.com

Bandar Seri Begawan - Despite the current challenging global financial environment, Islamic Finance has remained positive.

"The strengths are derived from the intrinsic principles of Syariah within the Islamic financial system including proper risk management and corporate governance, thus provides a balance to the industry," says Abdullah Haron, the Assistant Secretary General from the Islamic Financial Services Board (IFSB) yesterday.

In his talk at the Risk Management and Corporate Governance workshop, he said:" Greater global participation of regulatory and supervisory participation on Islamic Finance for best practices and higher standard of risk management has to be addressed during these uncertain times," he said, adding that this was the main reason why IFSB shifted its focus on developing new requirements

to facilitate the implementation of these standards.

The IFSB, which is based in Kuala Lumpur serves as an international body of regulatory and supervisory authority to ensure soundness and stability within the Islamic Financial Industry (IFSI).

With over 179 members, in 34 countries, IFSI not only encompasses regulatory bodies but also banks and professional firms.

Since its inauguration in November 3, 2002, there were seven standards introduced that includes guiding principles and technical notes for the IFSI on risk management, capital adequacy, corporate governance, supervisory review process, transparency and market discipline, guidance note on recognition of ratings for Islamic Financial instruments and notes on the Islamic money market, has been issued to ensure stability within this US$1 trillion industry.

The two-day workshop will discuss a number of topics including credit risk, equity investment risks and means to provide participants practical explanations of the IFSB standards and identify improvements to enhance the effectiveness of the current standards.

Also to be discussed at the workshop is the Basel II International Monetary Fund (IMF) framework and regulations which were issued by the Basel Committee on Banking Supervision on Islamic Financial Services.

The workshop also serves as a venue where the participants have the opportunity to interact and exchange information among themselves through practical simulation exercises. -- Courtesy of The Brunei Times