Featured Product

    IFSB Releases the 2019 Stability Report on Islamic Financial Services

    July 31, 2019

    IFSB issued the seventh edition of the financial stability report on the Islamic financial services industry. The report examines the implications, for the global Islamic financial services industry, of recent economic developments and changes in the global regulatory and supervisory frameworks. The report tracks developments and trends and examines the resilience of the three sectors of the Islamic financial services industry—Islamic banking, Islamic capital market, and Islamic insurance (takāful). For the analysis of the Islamic banking sector, the report utilizes data from the Prudential and Structural Islamic Financial Indicators (PSIFIs) database of IFSB.

    The report tracks initiatives and developments in other international financial standard-setting bodies with emphasis on aspects that directly relate to the complementary role played by IFSB. Various initiatives of IFSB since the last report have also been highlighted, including a synopsis of the IFSB standards implementation survey, standards development, research and working papers, and various industry collaborations. The report covers emerging issues in the Islamic financial services industry, with a focus on the regulatory and supervisory concerns arising from the developments in blockchain technology. Included in the report are article contributions from the Central Bank of Kuwait, the Central Bank of Nigeria, and the Astana International Financial Center on the developments and prospects for the Islamic financial services industry in their respective jurisdictions. The key highlights of the report include the following:

    • The Islamic banking sector retained its dominance in the global Islamic financial services industry. Out of the the 36 jurisdictions covered in the 2019 report, the domestic market share for Islamic banking in relation to the total banking sector continued to increase in at least 19 countries, remained constant in six, and declined in 11 jurisdictions.
    • The performance of the Islamic banking sector grew by a mere 0.9% in 2018, compared to 4.3% in 2017. As at the second quarter of 2018, the sector accounted for 72% (76% in 2017) of the total value of assets of the Islamic financial services industry; this is mainly due to the depreciation of local currencies in terms of USD, especially in some emerging economies with a significant Islamic banking presence.
    • The Islamic capital market sector, at end of 2018, accounted for 27% assets of the global Islamic financial services industry; this is supported by a positive performance due to the sovereign and multilateral ṣukūk issuances in key Islamic finance markets to support respective budgetary expenditures as well as a number of market debuts of sovereign issuance, including green sovereign ṣukūk to finance eco-friendly environment projects.
    • The share of global takāful industry in the global Islamic financial services industry remained unchanged at 1.3%. Global takāful contributions grew by 4.3% (y-o-y and in nominal terms) in 2017, with a six-year (2012–17) compound average growth rate of almost 6.9%. At the end 2017, an estimated 306 takāful institutions, including retakāful and takāful windows, now offer takāful products in at least 45 countries.

     

    Related Links

    Keywords: International, Banking, Insurance, Securities, Financial Stability Report, Islamic Financial Services Industry, Islamic Banking, Financial Stability, IFSB

    Related Articles
    News

    US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint

    The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.

    January 13, 2022 WebPage Regulatory News
    News

    EBA Issues Guide on Bank Resolvability, Consults on Transferability

    The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).

    January 13, 2022 WebPage Regulatory News
    News

    HKMA Extends Repayment for Trade Facilities, Consults on Crypto-Assets

    The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.

    January 12, 2022 WebPage Regulatory News
    News

    FCA Registers Securitization Repositories; PRA Issues 2022 Priorities

    The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.

    January 12, 2022 WebPage Regulatory News
    News

    EC Regulation Sets Out Methods for Measuring K-Factors Under IFR

    The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.

    January 11, 2022 WebPage Regulatory News
    News

    BIS Studies How Platform Models Impact Financial Stability & Inclusion

    The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.

    January 10, 2022 WebPage Regulatory News
    News

    ESAs Publish List of Financial Conglomerates for 2021

    The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.

    January 07, 2022 WebPage Regulatory News
    News

    APRA Licenses Two More Banks, Reduces Committed Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) updated the list of authorized deposit-taking institutions, granting license to Barclays Bank PLC and Crédit Agricole Corporate and Investment Bank to operate as foreign authorized deposit-taking institutions under the Banking Act 1959.

    January 07, 2022 WebPage Regulatory News
    News

    EU Issues SII Corrigendum; EIOPA Assesses SII Reporting Exemptions

    EU published, in the Official Journal of the European Union, a corrigendum to the Delegated Regulation 2015/35, which supplements Solvency II Directive (2009/138/EC).

    January 06, 2022 WebPage Regulatory News
    News

    EBA Opines on Impact of De-Risking and Associated AML/CFT Challenges

    The European Banking Authority (EBA) published an Opinion on the scale and impact of de-risking in European Union and the steps that competent authorities should take to tackle unwarranted de-risking.

    January 05, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 7860