Press Release No. 14/468

Press Release: The IMF Launches Consultations with its External Advisory Group on Islamic Finance

October 11, 2014

The Interdepartmental Working Group on Islamic Finance (IDWGIF) of the International Monetary Fund (IMF) held its first meeting with its External Advisory Group (EAG) on October 9, 2014, in Washington, D.C. to discuss issues related to Islamic banking and the development of sukuk¹ markets.

The discussions covered regulation and supervision, the scope for Islamic financial institutions to improve access to finance, including for small- and medium-sized enterprises, the implications of Basel III requirements for capital and liquidity on the industry, and the potential for enhancing Sharī`ah and corporate governance. Participants also discussed development of sukuk market and its potential for financing infrastructure investment and for providing instruments to facilitate liquidity management and central banking operations.

The EAG was established by the IMF to help identify policy challenges facing the Islamic finance industry and facilitate coordination with those international institutions involved in establishing standards for the industry. The EAG comprises Jaseem Ahmed, Secretary General of the Islamic Financial Services Board; Dr. Hamed Merah, Secretary General of the Accounting and Auditing Organization for Islamic Financial Institutions; Dr. Abdul Aziz Al Hinai, Vice-President of Finance in the Islamic Development Bank; Professor Azmi Omar, Director General of the Islamic Research and Training Institute; Ijlal Ahmed Alvi, Chief Executive Officer of the International Islamic Financial Market; Professor Datuk Rifaat Ahmed Abdel Karim, Chief Executive Officer of the International Islamic Liquidity Management Corporation; Abdelilah Belatik, Secretary General of the General Council for Islamic Banks and Financial Institutions; Dr. Ishrat Hussain, Professor and Former Governor of the State Bank of Pakistan; and Dr. Abdullah Ibrahim El-Kuwaiz, former Deputy Minister of Economy of Saudi Arabia and former Director General of the Arab Monetary Fund.

¹ Sukuk is the equivalent of bonds in Islamic finance.