The IFSB, short for the Islamic Financial Services Board, is an international regulatory and supervisory authority that sets standards and guidelines for the Islamic finance industry. Founded in 2002, the IFSB aims to promote and enhance the soundness and stability of the Islamic financial services industry through the development and issuance of global prudential standards and guiding principles.
The IFSB functions as a platform for Islamic finance regulatory authorities, international organizations, financial institutions, and other stakeholders to collaborate and exchange knowledge and experiences. It provides guidance on the implementation of best practices and facilitates the adoption of regulatory and supervisory frameworks in line with Islamic principles.
The key role of the IFSB is to develop and issue standards related to areas such as governance, risk management, capital adequacy, liquidity management, and disclosure and transparency. These standards are designed to ensure the safety and integrity of Islamic financial institutions, promoting stability and confidence in the industry. The IFSB's standards and guidelines provide a framework that helps regulators and practitioners in achieving compatibility and harmonization across various jurisdictions.
Furthermore, the IFSB conducts research and disseminates information on Islamic finance and its related instrument and products, fostering financial stability, and supporting the development of the global Islamic financial services industry. It also provides capacity building programs and technical assistance to its member countries, assisting them in developing and implementing effective regulatory and supervisory frameworks.
Overall, the IFSB plays a vital role in promoting the growth and sustainability of the Islamic finance industry by setting global standards and fostering collaboration among stakeholders.
