KARACHI: The Council of Islamic Monetary Providers Board (IFSB), Malaysia, has appointed State Financial institution of Pakistan (SBP) Governor Dr Reza Baqir because the chairman of its board for 2022, an announcement mentioned on Friday.
Dr Baqir’s appointment was accepted by the IFSB Council in its 39th assembly held on December 9, 2021 in Abu Dhabi. In 2021, he was the deputy chairman of the IFSB Council, it added.
Dr Baqir may also be serving because the chairman of the IFSB common meeting for 2022. The final meeting is the consultant physique of all of the members of the IFSB, together with full-time, affiliate and observer members.
The SBP governor mentioned he felt deeply honoured to imagine the chairmanship of the council and expressed the gratitude to Khaled Mohamed Balama Al Tameemi, governor of the UAE Central Financial institution, for efficiently main the council throughout 2021.
Dr Baqir expressed the hope that with the help of his fellow council members, he aspires to assist IFSB realise its mandate and proceed offering a high-quality mental steering to the worldwide Islamic finance industries envisaged in IFSB’s ahead trying and bold strategic efficiency plan 2022/24.
The IFSB Council is the senior government and coverage making physique, consisting of a full member consultant and senior executives from main regulatory and supervisory authorities on Islamic finance.
Presently, the physique has 187 members, which comprise 81 regulatory and supervisory authorities, 10 worldwide inter-governmental organisations, and 96 market gamers (monetary establishments, skilled companies, trade associations and inventory exchanges), working in 57 jurisdictions.
The mandate of the council is to formulate and approve the insurance policies and techniques of the IFSB, approve and make bylaws and undertake and approve issuance of prudential and supervisory requirements.
Established in 2003 in Kuala Lumpur, Malaysia, as a world commonplace setting organisation, IFSB has thus far issued 24 requirements, seven steering notes and three technical notes for the Islamic monetary companies trade, protecting wide-ranging areas equivalent to threat administration, capital adequacy, supervisory evaluate course of, transparency and disclosure, Shariah governance, and company governance.
In line with IFSB’s international Islamic monetary companies Stability Report 2021, the whole price of the Islamic monetary companies trade (Islamic banking, Islamic capital markets and Takaful) is estimated at $2.70 trillion in 2020.
To strengthen the regulatory and supervisory infrastructure for Islamic banking trade, the SBP has, over time, adopted numerous IFSB prudential requirements and tips after obligatory customisation within the gentle of the prevailing native authorized and regulatory atmosphere.
In Pakistan, at the moment there are 5 full-fledged Islamic banks and 17 typical banks working with the standalone Islamic banking branches providing a wide selection of Shariah-compliant monetary options.
As of June 2021, the market share of the Islamic banking trade belongings and deposits within the total banking sector stood at 17 per cent and 18.7 per cent, respectively.
The department community of Islamic banking establishments includes over 3,583 branches and 1,562 home windows. Islamic banking trade in Pakistan has turn into systemically an necessary element of the banking trade, registering a outstanding progress over the past 20 years.