THE successful development of Islamic finance hinges upon the greater harmonisation of Syariah standards, said a senior official from the Autoriti Monetari Brunei Darussalam (AMBD) yesterday.
In her opening remarks at the Sixth Islamic Financial Services Board (IFSB) Public Lecture on Financial Policy and Stability, the Deputy Managing Director (Regulatory) of AMBD, Hjh Lily Hj Kula, said that Islamic finance has strongly progressed.
“Islamic finance has made great strides in the areas of banking, Takaful (insurance), sukuk (Islamic bonds) and investment funds, from stand alone institutions to a credible global, financial force that is gaining significant momentum in its core markets,” she said.
It is a financial system founded on values and principles based upon specific religious and ethical precepts, which has taken root, and deserves due recognition, she added.
In an era of global and increasingly complex financial markets, Islamic finance — with its focus on the real economy and the equitable sharing of risk as well as greater transparency — is significantly relevant to the conventional financial market, Hjh Lily explained.
“However, its increasingly successful development hinges upon the greater harmonisation of Syariah standards.”
The AMBD Deputy managing Director said that the IFSB, as the standard-setter for Islamic finance, has contributed significantly to the harmonisation of Islamic finance across different jurisdiction.
“Recognising the subtleties of Islamic jurisprudence, this has been an achievement to be able to move towards gradual harmonisation which has been possible only through intensive dialogue, and regulatory cooperation,” she observed.
Hjh Lily also hoped the forum could be used as a platform to expand knowledge and exchange ideas with regards to financial policy and stability issues, while at the same time providing a great opportunity to explore the dynamics and principles of Islamic finance that have made it resilient to financial instability and turbulence.
She concluded her remarks by stressing the importance of well-deliberated, conscious policies, regardless Islamic or convention, to support and improve the stability of the global financial system.
The public lecture was delivered by Professor Dr Mehmet Asutay, Director of Durham Doctoral Training Centre in Islamic Finance, Durham University, UK.
He covered a topic on ‘Islamic Moral Economy and Dynamics of the Development of Islamic Financial Services Industry’.
The event was organised in conjunction with the IFSB annual meetings and was attended by over 100 local and foreign participants from central banks, regulatory agencies, financial institutions, professional firms and higher education institutions, according to an IFSB media statement yesterday.
The Brunei Times
Thursday, March 27, 2014