MANAMA: The biggest challenge in the development of Islamic finance is the need for integration within the global architecture, a top regulatory official said.
According to Central Bank of Bahrain executive director for banking supervision Khalid Hamad, ensuring compliance not just with principles of Islamic commercial jurisprudence but also with internationally acceptable standards of conduct and discipline is critical to its success.
Mr Hamad was speaking yesterday at the fourth International Islamic Financial Market (IIFM) industry briefing seminar, organised on the sidelines of the 20th World Islamic Banking Conference (WIBC).
The event is being held at the Gulf Hotel.
IIFM is a Bahrain-based non-profit organisation that aims at facilitating unification, Sharia harmonisation and legal reforms in Islamic financial markets.
The CBB official said that IIFM is currently working on several important projects, such as the master collateralised murabaha agreement, sukuk standardisation and more hedging products etc.
“All these ambitious projects require substantial financial support,” he said.
“Hence, the industry’s support is required.
“Therefore I urge the non-member institutions to initiate the process of joining IIFM.
“Having more members will enable IIFM to contribute more to sustainable growth of the Islamic finance industry,” he added.
“There are vast opportunities to be tapped globally for Islamic finance, not just amongst the Muslim investor community, but in the global financial market. “High standards of disclosure, transparency and governance will ensure sufficient levels of investor confidence that will lead to the development of a market that is robust and credible,” he said. [email protected]