Featured Product

    IFSB Releases the 2018 Stability Report on Islamic Financial Services

    July 05, 2018

    IFSB released the sixth edition of the Islamic Financial Services Industry (IFSI) Stability Report in 2018. The report provides an assessment of key developments and illuminates the status of resilience of various sectors of the global Islamic finance services industry—including Islamic banking, takāful, ṣukūk, Islamic funds, and equity markets—while highlighting current and emerging challenges to its stability. To analyze the Islamic banking sector, the report utilizes data from the Prudential and Structural Islamic Financial Indicators (PSIFIs) database of IFSB.

    The report first provides an overview of the global IFSI, including updates on trends, growth, and developments in the three main sectors of the industry: Islamic banking, Islamic capital markets, and takāful. It then describes the initiatives undertaken by international standard-setting bodies to further ensure the stability of the financial institutions and markets and examines the implications of such reforms. Next, the report assesses the resilience of the Islamic financial system, which includes technical analysis of selected indicators as well as assessment of risks, vulnerabilities, and stability issues in the three main sectors of the industry. Finally, the report covers emerging issues in Islamic finance and conducts a comprehensive analysis into the diversity of the legal infrastructure and Sharīʿah governance frameworks as applied in various jurisdictions. The following are the key highlights of the analysis:

    • The growth of the industry in 2017 was actively driven by all three sectors of the industry, with a significant contribution by the performance of the Islamic capital markets boosted by ṣukūk issuances from sovereign and multilateral institutions.
    • Improvements were seen in profitability and asset quality of the global Islamic banking sector, with Return on Assets and Return on Equity at their best levels in the last five years and the broader industry non-performing financing continuing to improve.
    • Liquidity conditions have continued to deteriorate, although there is heterogeneity in this trend between countries.
    • While Islamic capital markets marked a strong performance in 2017 on the back of sovereign ṣukūk issuances, some underlying weaknesses persisted from the previous year, including those in the corporate ṣukūk market.
    • The takāful sector, given its nascent size, continues to face challenges in the operating environment as a result of stiff competition from larger and more established insurance companies.

     

    Related Links

    Keywords: International, Banking, Insurance, Securities, IFSI, Financial Stability Report, Islamic Finance, ISFB

    Related Articles
    News

    HKMA Consults on Supervisory Policy for Systemically Important Banks

    HKMA proposed amendments to the Supervisory Policy Manual, or SPM, module CA-B-2 on systemically important banks.

    October 29, 2020 WebPage Regulatory News
    News

    FSB Report Finds Steady Increase in Climate-Related Disclosures

    FSB published the annual report that examines to-date progress toward implementation of climate-related disclosure recommendations of the industry-led Task Force on Climate-related Financial Disclosures (TCFD).

    October 29, 2020 WebPage Regulatory News
    News

    EBA Proposes to Revise Guidelines on Sound Remuneration Policies

    EBA proposed to revise the guidelines on sound remuneration policies in light of the amendments introduced by the fifth Capital Requirements Directive (CRD V).

    October 29, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Interim Final Rules Issued Amid Pandemic

    US Agencies (FDIC, FED, and OCC) finalized two rules, which are either identical or substantially similar to the interim final rules in effect and issued earlier this year.

    October 29, 2020 WebPage Regulatory News
    News

    EBA Report Examines Quality of TLAC and MREL Instruments in EU

    EBA published the first monitoring report that examines the issuance and quality of the minimum requirement for own funds and eligible liabilities (MREL) and the total loss-absorbing capacity (TLAC) instruments in EU.

    October 29, 2020 WebPage Regulatory News
    News

    FSB Consults on Forward-Looking Climate Metrics for Financial Sector

    FSB's Task Force on Climate-Related Financial Disclosures (TCFD) is seeking views on the decision-useful, forward-looking climate metrics for firms in financial sector, with the consultation ending on January 27, 2021.

    October 29, 2020 WebPage Regulatory News
    News

    APRA Consults on Reporting Standard for Credit Risk Management

    APRA is consulting on the reporting standard for credit risk management (ARS 220.0).

    October 28, 2020 WebPage Regulatory News
    News

    PRA Consults on Proposals to Support Transposition of BRRD2

    PRA launched a consultation (CP18/20) setting out proposals for the "Contractual Recognition of Bail-in" and "Stay in Resolution" Rules.

    October 28, 2020 WebPage Regulatory News
    News

    BoE and PRA Consult on Changes to Resolution Policy for Banks

    BoE and PRA launched a package of proposals on the resolution policy in UK.

    October 28, 2020 WebPage Regulatory News
    News

    ECB Opinion on Amendments to Luxembourg Financial Services Legislation

    ECB published an opinion (CON/2020/25) on the deposit guarantee scheme and other amendments to the financial services legislation.

    October 27, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6031