LOC17:54
14:54 GMT
TOKYO, Nov 23 (KUNA) -- The Islamic Financial Services Board (IFSB) on
Monday approved three documents aimed at further facilitating efforts towards
enhancing the soundness and stability of the Islamic financial services
industry.
The decision was made at its council meeting in Kuala Lumpur, chaired by
Dr. Muhammad Sulaiman Al-Jasser, Governor of the Saudi Arabian Monetary
Agency, the IFSB said in a press release.
The three documents included Guiding Principles on Governance for Islamic
Insurance (Takaful) operations, Conduct of Business for Institutions offering
Islamic Financial Services and Guiding Principles on Shari'ah (Islamic law)
Governance System, according to the IFSB, a Malaysia-based organization set up
by Muslim countries, of which Kuwait's central bank is a founding member.
The guidelines on governance for all Takaful operations are designed such
as to reinforce relevant good governance practices based on those prescribed
by other internationally recognized governance standards.
Guiding Principles on Shari'ah Governance System aims to highlight to
supervisory authorities in particular, and the industry's other stakeholders
in general, the components of a sound Shari'ah governance system.
The meeting was attended by the President of the Islamic Development Bank,
Central Bank's Governors and governors' representatives of the IFSB 21-member
Council.
The IFSB council also admitted eight new organizations into its membership,
including the Insurance Authority of the United Arab Emirates, Banque Centrale
du Luxembourg and the Arab Chamber of Commerce and Industry of Hong Kong.
The members of the IFSB comprise regulators and supervisors of the banking,
capital markets and Takaful sectors, as well as international
inter-governmental organizations and market players -- financial institutions,
professional firms and industry associations.
Established in 2003, IFSB's membership has grown to total 193 as of August,
including 15 financial institutions from Kuwait, such as KFH, Boubyan Bank,
Gulf Investment House and Kuwait International Bank. Islamic financing is
based on Shari'ah, or Islamic law, which prohibits charging or paying
interest.
Instead, there are schemes for partnerships in trade in goods and services,
direct investment and renting as well as profit sharing. Shari'ah also bans
financing businesses related to alcohol, pork, gambling and weapons. (end)
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