KUALA LUMPUR – The Secretary-General of the Islamic Financial Services Board (IFSB), Dr. Bello Lawal Danbatta targets to make IFSB as the reference for the global financial industry in Islamic and conventional finance in five years.
According to Bello, the IFSB is working on closing the gaps from the aspect of regulations and guidelines issuance between the Islamic and conventional finance.
With that, the IFSB is always open to forge collaborations with their conventional counterparts.
Bello said, the IFSB has received the confirmation from the Executive Board of the International Monetary Fund (IMF) and World Bank to use the IFSB regulations in evaluation of both financial sectors.
“We want more global financial sustainability boards to use the standards, regulations and codes of the IFSB in the future.
“We have quality, prudent, transparent and global standard for the sustainability benefits of the Islamic financial services,” he told MalaysiaGazette.
If the standards issued by IFSB is used in all financial sectors in the world, it also means that the Islamic finance will be more sustainable.
It will also witness IFSB as the leader in spearheading the industry.
He added, the IFSB is currently working together with the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) which publishes the standards of Syariah governance.
Through the collaboration, IFSB and AAOIFI can avoid the redundancy of work and both agencies can become relevant in the industry and execute its delivery.
“I expect IFSB to become more proactive and strategic in placing itself in the industry. Therefore, we are confident that the IFSB will receive more members.
“With that, the introduction to the standards issued by IFSB can be implemented everywhere. That will enable the rate of execution to increase from year to year,” he explained.
He also reminded that the Islamic finance is universal and it does not only fulfils the needs of the Muslims but it is universal, compared to the conventional finance which is only for the non-Muslims.
The condition is such as in Islam, the Muslims are bound by the rules that stop them from exploitative gains (riba) and other forbidden matters.
Besides that, Bello also shared that the beauty and advantage of Islamic finance is based on the actual economic sector. -MalaysiaGazette