Latest news with #IFSB
Zawya
19-05-2025
- Business
- Zawya
Islamic Financial Services Industry Stability Report 2025 released
Kuala Lumpur, MALAYSIA – The Islamic Financial Services Board (IFSB) has released the 13th edition of its flagship Islamic Financial Services Industry (IFSI) Stability Report. This year's report reflects a renewed momentum across the industry, with total global assets reaching USD 3.88 trillion in 2024—a 14.9% increase year-on-year. Themed 'Navigating Shallow Waters: Addressing Structural Vulnerabilities and Shoring Up Resilience to Global Shocks,', the report also observed broad-based growth across Islamic banking, ṣukūk, and Islamic insurance, signalling deepening market participation, growing global relevance, and broadening geographical reach. Key takeaways from the report includes: Renewed growth momentum of the IFSI: High year-on-year growth across key sectors of the IFSI, registering double-digit growth rates. In 2024, total asset growth for the Islamic banking and Islamic insurance grew by 17.05% and 16.9% respectively, while sukuk issuances increased by 25.6%. Emerging markets opening new frontiers: Africa and Central Asia posted the highest growth rates globally, representing important opportunities to deepen local financial markets and expanding the industry's global footprint. Financial soundness indicators remained broadly stable: Capital, leverage, liquidity, and asset quality positions in both the banking and insurance sectors remain broadly sound. This is reflecting the positive impact of strengthened regulatory frameworks, wider adoption of IFSB standards, and growing investor confidence. While outlook remains positive, some structural vulnerabilities remain: The report underscores the need to address long-standing structural imbalances, particularly the underdevelopment of capital markets and insurance sectors, which can constrain the industry's scalability and its ability to fully support investment, funding, and liquidity needs across sectors. Critical need to address structural limitations in ṣukūk markets: A key conclusion of the report is the need to deepen ṣukūk markets, which plays a vital role in strengthening financial intermediation and supporting macro-financial stability. While 2024 saw a surge in ṣukūk issuance and growing issuer diversity, structural limitations remain, including underdeveloped market infrastructure, complex ṣukūk structures and limited local-currency sovereign issuances, investor concentration, and low trading volumes, among other factors. If unaddressed, these structural limitations may constrain the IFSI's long-term growth and pose broader financial stability risks, while also affecting other segments of the industry that depend on capital markets to manage their funding, investment portfolios, and liquidity positions. The report further outlines a forward-looking set of policy priorities to address these limitations and unlock the potential growth of Islamic finance. It calls for coordinated action among regulators, policymakers, and industry stakeholders to address these challenges, to ensure the sound development of the Islamic financial services industry. First published in 2010, the IFSI Stability Report has become a key reference for global stakeholders, regulators, and market participants. It offers in-depth insights into industry trends, vulnerabilities, and evolving policy priorities shaping the future of Islamic finance. The IFSB Islamic Financial Services Industry Stability Report 2025 is now available at About the Islamic Financial Services Board (IFSB) The IFSB is an international standard-setting organisation that promotes and enhances the soundness and stability of the Islamic financial services industry by issuing global prudential standards and guiding principles for the industry, broadly defined to include banking, capital markets and insurance sectors. The IFSB also conducts research and coordinates initiatives on industry-related issues, as well as organises roundtables, seminars and conferences for regulators and industry stakeholders. Towards this end, the IFSB works closely with relevant international, regional and national organisations, research/educational institutions and market players. The members of the IFSB comprise regulatory and supervisory authorities, international inter-governmental organisations and market players, professional firms and industry associations. For more information about the IFSB, please visit IFSB Media Contact: Nor Atiqah/ Ammar Khairi Email: ifsb_sec@
Biz Bahrain
10-05-2025
- Business
- Biz Bahrain
CIBAFI Submits Recommendations to IFSB on Climate Risk Guidance for Islamic Banks
The General Council for Islamic Banks and Financial Institutions (CIBAFI) submitted its comments to the Islamic Financial Services Board (IFSB) on the Exposure Draft (ED) (GN-11) on the ' Guidance Note on Climate-Related Financial Risks for Institutions Offering Islamic Financial Services (Banking Segment)'. Drawing upon expert insights from its diverse membership spanning more than 30 jurisdictions, CIBAFI's review identifies several areas for enhancement in the ED. Key recommendations include: • Encouraging RSAs to ensure that IIFS clearly demonstrate how responsibilities for climate-related financial risks are embedded within governance structures, including integration into board committee mandates and structured engagement with Shariah boards. • Recommending that IIFS incorporate climate-related objectives into institutional strategies using defined key performance indicators (KPIs) and performance management frameworks to enhance accountability. • Supporting the inclusion of internal, measurable climate-related objectives within ICAAPs/ILAAPs, with disclosures—where material—to reinforce transparency and effective capital and liquidity assessments. • Recommending more detailed guidance on how IIFS can integrate climate-related risks into their stress testing, ICAAP, and ILAAP frameworks to promote consistency and ensure a level playing field in capital and liquidity adequacy assessments across Islamic banks. • Providing more detailed guidance on adapting risk assessment methodologies to the specificities of Islamic contracts, particularly equity-based structures such as musharakah and mudarabah, to ensure alignment with BCBS Principles. • Explicitly addressing reputational and liability risks related to climate claims, including potential greenwashing risks, which may also constitute Shariah governance concerns given the ethical commitments of IIFS. • Expanding guidance on climate-related disruptions to commodity markets, which are critical to Shariah-compliant liquidity management, by recommending contingency planning measures to support effective implementation of BCBS Principle 10 in the IIFS context. 'These recommendations reflect CIBAFI's ongoing commitment to supporting the development of forward-looking regulatory frameworks that strengthen the resilience of Islamic financial institutions in the face of emerging risks. By addressing climate-related financial risks in a manner consistent with Islamic principles, the proposed enhancements aim to promote effective risk governance, greater transparency, and long-term sustainability across the Islamic financial services industry,' said CIBAFI in its statement. The complete detailed comments submitted to IFSB are available on CIBAFI's website: CIBAFI continues to support the Islamic Financial Services Industry through advocacy, global representation, and various initiatives, including specialised publications and comprehensive professional development programmes.
Time Business News
08-05-2025
- Business
- Time Business News
7 Mistakes to Avoid When Choosing an Islamic Finance Qualification
In today's dynamic global economy, Islamic finance is more than a niche—it's a robust, ethical alternative to conventional finance, expected to reach USD 3.69 trillion by 2024, according to the Islamic Financial Services Board (IFSB). With over 1,400 institutions in more than 80 countries offering Islamic financial services, the demand for qualified professionals in this field is booming. However, the journey to becoming an expert starts with one crucial decision: choosing the right Islamic finance qualification. A poorly chosen certification can waste time, money, and opportunities. This article outlines seven major mistakes that candidates often make—and should absolutely avoid—when selecting a qualification in Islamic finance. We'll also explore why institutions like AIMS (Academy for International Modern Studies) are helping learners worldwide secure meaningful, internationally recognized careers in this field. Not all Islamic finance certifications carry the same weight across borders. Many courses lack industry validation, making them less relevant to employers. Why recognition matters: Employability: Employers prefer graduates from institutions whose qualifications are internationally endorsed. Employers prefer graduates from institutions whose qualifications are internationally endorsed. Mobility: A globally recognized certificate allows professionals to work in diverse markets like the UAE, Malaysia, and the UK. A globally recognized certificate allows professionals to work in diverse markets like the UAE, Malaysia, and the UK. Credibility: It ensures the qualification meets consistent academic and industry standards. Look for affiliations with organizations like AAOIFI, IFSPB, or CIMA. Ensure the program is offered or endorsed by globally active institutions. Explore alumni success stories and where they are now working. A qualification in Islamic finance is not just about banking—it's deeply rooted in Islamic jurisprudence. Many programs skim over this essential foundation. An ideal curriculum must: Include modules on Fiqh al-Muamalat (Islamic commercial jurisprudence). (Islamic commercial jurisprudence). Offer in-depth study of Shariah compliance , Islamic contracts , and risk management . , , and . Cover essential topics like murabaha , mudarabah , ijarah , and sukuk . Skipping this component leads to: Surface-level understanding. Inability to analyze or structure compliant products. Weak Shariah governance knowledge. AIMS, for instance, integrates comprehensive Shariah frameworks into its curriculum to ensure both academic rigor and practical application. With 60% of Islamic finance professionals already employed while pursuing further studies (as per a survey by Global Islamic Finance Forum), flexibility is not optional—it's essential. 100% online learning for convenience. for convenience. Self-paced study options for better time management. options for better time management. Modular structures, so learners can focus on one component at a time. Why it matters: Enables balancing work, study, and family. Reduces burnout and dropout rates. Allows learners to immediately apply knowledge at their jobs. Institutions like AIMS cater to working professionals by offering flexible and industry-focused Islamic finance programs that fit busy schedules. An overly theoretical program can leave learners confused when faced with real-world scenarios. Islamic finance is a practice-driven field—academic theory alone is not enough. Signs of a practice-based curriculum: Case studies on Islamic banking structures. Simulations and real-world scenarios. Assignments that require product structuring or risk assessment. Zakat calculation projects (as zakat is a kind of fiscal worship in islamic principles ). (as ). Islamic financial reporting aligned with AAOIFI standards. aligned with AAOIFI standards. Designing Shariah-compliant investment portfolios. This approach equips learners to solve problems, innovate within Islamic principles, and drive growth in institutions they serve. A qualification that ends with the final exam—and offers no career support—can make job-hunting feel like navigating a maze blindfolded. Career counseling and job placement assistance. and job placement assistance. Access to global alumni networks . . Opportunities for advanced studies or specialization . . Regular webinars with industry leaders. Programs from institutions like AIMS often include lifelong access to professional networks and industry updates, which are invaluable for career growth. Islamic finance is evolving, with rapid changes in fintech, ethical investing, and global regulations. Who teaches you matters—a lot. They've worked in Islamic banks, takaful companies, or investment firms. They participate in Shariah boards or consult in product development. They publish in peer-reviewed journals or lead industry research. Learning from seasoned practitioners offers: Real-world insights beyond textbooks. Exposure to cutting-edge trends. Practical guidance for career development. AIMS collaborates with global scholars and professionals to provide learners with mentorship and insights that extend far beyond the classroom. One-off certifications with no pathway for further learning can trap your career. The Islamic finance sector is multifaceted—banking, insurance, investments, fintech—requiring lifelong learning. Offer stackable credentials : certificate → diploma → master's. : certificate → diploma → master's. Allow transitions into research , teaching , or consultancy . , , or . Open doors to international qualifications and designations. AIMS is a leader in scalable Islamic finance education. It offers progressive levels of study, from certification to MBA-level degrees, recognized across sectors. While numerous programs exist globally, AIMS stands out for its commitment to excellence, flexibility, and real-world application. The institution's certifications are designed in collaboration with industry experts and Shariah scholars, meeting the growing demand for professionals who understand both modern finance and Islamic ethics. For anyone seeking the best islamic finance certification for international Islamic banking careers, AIMS offers not just a qualification—but a career transformation. Islamic finance focuses on ethical principles based on Shariah law. Unlike conventional finance, it prohibits interest ( riba ), speculation ( gharar ), and investments in harmful industries. Certifications in this field include these frameworks while maintaining global financial standards. Check for accreditation from bodies like AAOIFI or IFSPB. Also, investigate whether the qualification is recognized in key Islamic finance markets like the Middle East, Southeast Asia, or the UK. Absolutely. Many programs, including those from AIMS, are designed for both beginners and experienced professionals. Bridging modules help learners transition smoothly into Islamic financial concepts. Job roles include Shariah compliance officer, Islamic banker, investment analyst, product developer, and auditor. The industry has seen a 15% annual growth rate in demand for certified professionals. No. It extends to takaful (Islamic insurance), sukuk (Islamic bonds), wealth management, Islamic microfinance, and fintech innovations that align with Islamic ethics. Yes, most comprehensive programs include zakat as a key component. As zakat is a kind of fiscal worship in islamic principles, understanding it is essential for professionals managing wealth or advising clients in Islamic finance. AIMS is widely respected for combining academic credibility, real-world relevance, and a learner-friendly structure, making it a strong choice for professionals at any career stage. Making the right choice in your Islamic finance education can define your future. With a growing global need for experts who understand ethical finance, selecting the right certification isn't just a decision—it's an investment in a purpose-driven career. Avoid these seven mistakes, and you'll be well on your way to becoming a leader in the world of Islamic finance. TIME BUSINESS NEWS
Zawya
08-05-2025
- Business
- Zawya
CIBAFI submits recommendations to IFSB on Climate Risk Guidance for Islamic Banks
Manama, Kingdom of Bahrain |The General Council for Islamic Banks and Financial Institutions (CIBAFI) submitted its comments to the Islamic Financial Services Board (IFSB) on the Exposure Draft (ED) (GN-11) on the " Guidance Note on Climate-Related Financial Risks for Institutions Offering Islamic Financial Services (Banking Segment)". Drawing upon expert insights from its diverse membership spanning more than 30 jurisdictions, CIBAFI's review identifies several areas for enhancement in the ED. Key recommendations include: Encouraging RSAs to ensure that IIFS clearly demonstrate how responsibilities for climate-related financial risks are embedded within governance structures, including integration into board committee mandates and structured engagement with Shariah boards. Recommending that IIFS incorporate climate-related objectives into institutional strategies using defined key performance indicators (KPIs) and performance management frameworks to enhance accountability. Supporting the inclusion of internal, measurable climate-related objectives within ICAAPs/ILAAPs, with disclosures—where material—to reinforce transparency and effective capital and liquidity assessments. Recommending more detailed guidance on how IIFS can integrate climate-related risks into their stress testing, ICAAP, and ILAAP frameworks to promote consistency and ensure a level playing field in capital and liquidity adequacy assessments across Islamic banks. Providing more detailed guidance on adapting risk assessment methodologies to the specificities of Islamic contracts, particularly equity-based structures such as musharakah and mudarabah, to ensure alignment with BCBS Principles. Explicitly addressing reputational and liability risks related to climate claims, including potential greenwashing risks, which may also constitute Shariah governance concerns given the ethical commitments of IIFS. Expanding guidance on climate-related disruptions to commodity markets, which are critical to Shariah-compliant liquidity management, by recommending contingency planning measures to support effective implementation of BCBS Principle 10 in the IIFS context. 'These recommendations reflect CIBAFI's ongoing commitment to supporting the development of forward-looking regulatory frameworks that strengthen the resilience of Islamic financial institutions in the face of emerging risks. By addressing climate-related financial risks in a manner consistent with Islamic principles, the proposed enhancements aim to promote effective risk governance, greater transparency, and long-term sustainability across the Islamic financial services industry,' said CIBAFI in its statement. The complete detailed comments submitted to IFSB are available on CIBAFI's website: CIBAFI continues to support the Islamic Financial Services Industry through advocacy, global representation, and various initiatives, including specialised publications and comprehensive professional development programmes. About the General Council for Islamic Banks and Financial Institutions (CIBAFI) CIBAFI is an international organization established in 2001 and Headquartered in the Kingdom of Bahrain. CIBAFI is affiliated with the Organization of Islamic Cooperation (OIC). CIBAFI represents the Islamic financial services industry globally, defending and promoting its role, consolidating co-operation among its members, and with other institutions with similar interests and objectives, with over 140 members from more than 30 jurisdictions, representing market players, international intergovernmental organizations and professional firms, and industry associations.
Biz Bahrain
01-05-2025
- Business
- Biz Bahrain
CIBAFI Submits Technical Recommendations on IFSB's Takaful Recovery and Resolution Framework
The General Council for Islamic Banks and Financial Institutions (CIBAFI) submitted its comments to the Islamic Financial Services Board (IFSB) on the Exposure Draft (ED) (GN-10) on the 'Guidance Note on Recovery and Resolution for Takaful Undertakings'. Drawing upon expert insights from its diverse membership spanning more than 30 jurisdictions, CIBAFI's technical review identifies several areas for enhancement in the proposed regulatory framework. Key recommendations include: • Expanding the guidance to explicitly address retakaful undertakings, recognizing their potential systemic significance within the Islamic financial ecosystem • Strengthening the principle of independent recovery by removing references to potential public sector support during takaful recovery processes • Enhancing clarity on Point of Non-Viability (PONV) indicators specific to Participants' Risk Funds through additional qualitative and quantitative criteria • Aligning terminology with existing IFSB takaful standards, particularly regarding capital structure references • Providing more detailed guidance on loss allocation principles across segregated takaful fund structures in bail-in scenarios • Clarifying resolution authority procedures for outstanding qard treatment to ensure fair distribution of assets during resolution 'These recommendations reflect CIBAFI's ongoing commitment to supporting the development of robust regulatory frameworks that enhance stability while preserving the unique characteristics of Islamic financial institutions. The proposed enhancements aim to promote greater consistency, transparency, and Shariah compliance in takaful recovery and resolution mechanisms across jurisdictions.', said CIBAFI in its statement. The complete detailed comments submitted to IFSB are available on CIBAFI's website: CIBAFI continues to support the Islamic Financial Services Industry through advocacy, global representation, and various initiatives, including specialised publications and comprehensive professional development programmes.
