IFSB Announces the Second Release of Prudential and Structural Islamic Financial Indicators (PSIFIs) for 16 Member Countries

- IFSB MEDIA RELEASE -

The IFSB Announces the Second Release
of Prudential and Structural Islamic Financial Indicators (PSIFIs) for 16 Member Countries

ISLAMIC FINANCE

Kuala Lumpur, MALAYSIA

Wednesday, 25th November 2015

The Islamic Financial Services Board (IFSB) is pleased to announce the second dissemination of its Prudential and Structural Islamic Financial Indicators (PSIFIs) from 16 member countries. The PSIFI data, which aims to provide data on the financial soundness and growth of the Islamic banking systems in participating IFSB member jurisdictions, covers the quarterly data from December 2013 to December 2014.

Secretary-General of the IFSB, Mr Jaseem Ahmed stated that “The support of multilateral organisations – such as the IMF, ADB and IDB – have greatly assisted the progress on this project. It is our aim to continue to expand the scope of the PSIFI to include the participation of new jurisdictions, as well as expansion of data to the Islamic capital market and Takaful sectors of the industry”.

The first set of data was released on 27 April 2015 covering the period as of December 2013. The second release adds the indicators for the four quarters of 2014, with necessary adjustments and revisions to the earlier data set. It thus provides more complete data than the earlier release as many member jurisdictions have improved their data collection and consolidation framework for Islamic banking industry in line with the requirements of PSIFIs project.

The Task Force on PSIFIs – which includes representatives from 16 member jurisdictions as well as international organisations such as the IMF – updated some indicators after the first release to enhance their clarity and consistency across jurisdictions. In the new release, a number of jurisdictions have also started reporting of the data on macroprudential indicators such as assets held by domestic systemically important banks, leverage ratio, as well as liquidity coverage ratio (LCR).

The countries participating in this project are: Afghanistan, Bahrain, Bangladesh, Brunei, Egypt, Indonesia, Iran, Jordan, Kuwait, Malaysia, Nigeria, Oman, Pakistan, Saudi Arabia, Sudan, and Turkey. The IFSB is now collecting data for the first two quarters of 2015 which will be targeted for dissemination in Q1 of 2016.

“In the context of the heightened awareness of vulnerability of all financial systems to a range of risks, the PSIFI provide a new tool for monitoring the soundness and stability of Islamic finance”, said the Secretary-General of the IFSB, Mr. Jaseem Ahmed. In particular, he noted that, “The focus on core issues of capital adequacy, asset quality, liquidity and leverage will assist in evaluating consistency in the adoption of global and IFSB recent standards on risk based capital, liquidity coverage ratio (LCR) and the net stable funding ratio (NSFR)”.

The PSIFI Database (full set of data with metadata) is available on the PSIFIs portal at the IFSB website http://psifi.ifsb.org. 

" Gearing for Economic Resurgence ". 6th WIEF-KL, Attended!

LINKS:-
1) WIEF - World Islamic Economic Forum
2) 6th WIEF 2010, Kuala Lumpur

Judging by the attendance of Presidents(Indonesia,Kosovo, Maldives and Senegal), Prime Ministers( Bangladesh and Malaysia )and the Sultan of Brunei in addition to the various facets of the plenary and parallel sessions available, the 6th WIEF have certainly evolved into a premier world-class economic forum for the international muslim community.

In Islamic Banking & Finance there seems to be a concerted effort and common mantra in calling for harmonisation of products and standards for IF products. Tun Musa Hitam started the ball rolling even before WIEF proper.

This is similar to the clarion call by most speakers be they from UK or Malaysia in the Inaugural SC-OCIS,UK Forum I'd attended in March 2010 at the Securities Commission.

Whilst I'm not opposing to the frequent calls for harmonisation, I have to disagree on how it is to be done. Why can't harmonisation be done in another manner....as I strongly believe in the "Unity in Diversity" idea. Why do Muslim countries have to "gear" their products in accordance to the oil-rich gulf countries edicts!!?? There is no one size fits all solution.

For example, an IBF Compliance Certification for products and services offered can be introduced similar to a halal certificate for food and cosmetics products. The compliance certification will then indicate whether the pertinent IBF product is in compliance with the teachings of Sunnah and any or all of the 4 mazhabs(Syafie, Maliki, Hanafi & Hambali). Wheteher the IBF product is in compliance with the edicts of Shiah will also be indicated. When the IBF Compliance Certification is introduced, then sophisticated Muslim investors can decide as to whether they want to invest in a particular IBF product or not whilst at the same time leaving the room for IBF innovation open for further advancement.

Hence, IBF products/contracts popular in certain countries or regions like the Al-Bai' Bithaman Ajil (BBA) can still be marketed and securitised as they appeal to a niche set of Muslim investors altogether. In addition, the BBA can take its place as a product/contract which helps in the asset-building process of an Islamic financial institution. I hope, the MIFC can take-up this proposal and introduce it as part of their capacity building initiatives.......SOON!



BLOG APPRECIATION:

On an end note, I will like to thank Iskandar Development Region authorities for the kind invitation extended to me to attend the 6th WIEF in KL.

Capacity Building - Time for IF UNIVERSITIES/INSTITUTE RANKINGS!

LINKS:
MALAYSIAKINI(Malay)
QS ASIAN UNI Rankings 2010
The Star

Again,One of Malaysia's if not the world's top university in Islamic finance i.e INCEIF were NOT included in the recent QS Asian Universities Rankings 2010.

In October 2009, I'd commented on the need for a WORLD UNIVERSITIES RANKING for Universities/Institutes offering IF training and programmes .

The inclusion of my alma matter i.e. IIUM is a welcomed relief.

Islamic Finance is one of the few areas where Malaysia have a Comparative Advantage compared to the rest of the world.

Having confidence in its Islamic Banking system, BNM via MIFC should now further consolidate its first-mover advantage by introducing and/or sponsoring a World universities/Institutions rankings for IF. Am sure the 2 named universities...if not other local universities will feature in the top 50 IF institutions if such a ranking were introduced.




BNM & MIFC, please expedite the Rankings for IF Universities and Institutes, less the advantage will be lost







Note:



Author's comments re IF rankings at the Times Higher Education website. Refer:-



http://www.timeshighereducation.co.uk/story.asp?storycode=408560


comment under the name of "Amirul HM" on 21st October 2009.

IF World Universities RANKINGS! - Need for a Capacity Building initiative by MIFC

Malaysia's top universities in Islamic finance like the International Islamic University of Malaysia(IIUM) and
The International Centre for Education in Islamic Finance (INCEIF) which was accorded University status
were NOT included in the Times Higher Education's World Universities Rankings 2009.

The exclusion of INCEIF is not surprising considering it's a new university. However, the exclusion of IIUM of which is one of my alma matter IS!???

Islamic Finance is one of the few areas where Malaysia have a Comparative Advantage to the rest of the world having:-

• Set-up the Pilgrims Management Board (popularly known as Tabung Haji) in 1969 with the enactment of LEMBAGA URUSAN DAN TABUNG HAJI ACT 1969 ( which has subsequently Repealed by the Tabung Haji Act 1995,


• Incorporated the first Islamic Bank & Takaful company (Bank Islam & Takaful Malaysia respectively ) in 1983; and,


• Introduced the dual banking system vis the Interest-Free Banking Scheme(SPTF) in 1993; and,


• Opened-Up the Islamic Banking System to foreign Islamic Banks in 2004 even earlier than what was required for the conventional banking system under the WTO liberalisation .

Having confidence in its Islamic Banking system, BNM via MIFC should now further consolidate its first-mover advantage by introducing and/or sponsoring a World universities/Institutions rankings for IF. Am sure the 2 named universities...if not other local universities will feature in the top 50 IF institutions if such a ranking were introduced.......SOON!

Over to you BNM & MIFC.

Note:

Author's comments re IF rankings at the Times Higher Education website. Refer:-

http://www.timeshighereducation.co.uk/story.asp?storycode=408560

Comment made under the name of "Amirul HM" on 21st October 2009.