вход по аккаунту


How to Regulate Islamic Financial Markets and - Central Banking

код для вставки
The independent world forum for
central bankers and financial supervisors
Training course/seminar series 2011
How to Regulate Islamic
Financial Markets and Products
4-day intensive residential programme
13 – 16 September 2011
Christ’s College, Cambridge
Course chairman:
Dr Aly Khorshid
Director of Islamic Finance Studies,
Academy UK and Sharia Board Member
Series adviser:
Charles Goodhart, CBE
Professor Emeritus
London School of Economics
Financial Markets Group
Hosted by Central Banking Publications
Dear Delegate,
Since its inception just over four decades ago, the
modern Islamic finance industry has grown rapidly. Today,
it is estimated to have assets under management of over
half a trillion US dollars.
Driving this growth has been the development of new
and innovative products and markets including takaful
and sukuk. Coupled with this in recent years has been
the emergence of global standard setters including bodies
such as the Islamic Financial Services Board (IFSB), the
Accounting and Auditing Organisation for Islamic Financial
Institutions (AAOFI) and in 2010, the International Islamic
Liquidity Management Corporation (IILM).
It has been argued that regulating Islamic finance
alongside conventional finance can hinder one or the
other. While progress has been made to bridge the gap,
there remains considerable scope for interpretation. The
challenge for central banks and regulatory bodies is to
create a supervisory framework for Islamic finance which
manages risk but also encourages growth. This is easier
said than done.
The IFSB and AAOIFI have gone some way to assist
jurisdictions in developing such a framework, however
with the rapid growth of the industry central banks and
regulators have to stay abreast of industry developments
and adapt in order to supervise new and emerging
products and markets.
This seminar will equip regulatory specialists from central
banks and supervisory authorities with the tools to
understand this important part of the global economy
and build a framework to enable development within
their jurisdiction.
Delegates will be able to question industry practitioners
and experts and discuss solutions to the specific
challenges they face within their respective jurisdictions.
Key sessions will focus on:
New developments in IFSB prudential standards
AAOIFI accounting, auditing and disclosure standards
Developing a domestic Islamic financial infrastructure
Licensing and supervising Islamic banks in a duel
regulatory system
Best practice approaches for regulating sukuk and
New developments in liquidity management
An Islamic bank’s perspective of being supervised
Interactive panel discussion with respected Sharia
The panel of expert speakers combine practical
regulatory experience as well as perspectives from
private sector experts and academics, including:
• Mehmet Asutay, Lecturer in Islamic finance,
Durham University
• Didier Peny, Director, Licensing,
Authorisation and Regulation, Banque de France
• Omar Sheikh, UK Treasury Advisory
Sub-Committee and Board Member, UKIFC
• Joëlle el Gemayel, Research Assistant to the
First Vice-Governor, Banque du Liban
• H amim Syahrum Ahmad Mokhtar,
Deputy Director, Financial Surveillance,
Bank Negara Malaysia
• H amayon Dar, CEO and Shariah Advisor,
BMB Islamic
• Sunando Roy, Advisor, Central Bank of Bahrain
We are delighted to welcome Dr Aly Khorshid,
Director of Islamic Studies at Academy UK and a
serving Sharia board member at numerous banks, as
chairman for this year’s seminar.
The four-day programme of interactive roundtable
seminars and workshops offers practical examples of
how Islamic finance works and more importantly, how
to overcome supervisory challenges.
Each session allows participating supervisors and
central bankers an opportunity to “benchmark”
their work against leading thinking and practice
internationally and to exchange views with their peers
in an informal setting.
This format, as more than 3,000 central bankers and
regulators can attest, encourages delegates to quiz
panellists, raise issues and discuss solutions to the
specific challenges they face.
I look forward to welcoming you to Christ College
this year.
Yours sincerely,
Robert Pringle
Central Banking Publications
How to Regulate Islamic
Financial Markets
and Products
Autumn 2011
Tuesday 13 September
The evolution of Islamic finance and its regulatory
Opening remarks and participant experience
Aly Khorshid, Director of Islamic Finance Studies, Academy UK and Sharia Board Member
This session sets the scene with a review of the key challenges confronting supervisors in their home
institutions and the latest international developments in relation to Islamic finance. Delegates will
be invited to give a brief account of their local regulatory system and explain their most pressing
regulatory and supervisory challenges. This session is an opportunity for delegates to benefit from
each other’s expertise and experience in confronting common problems.
The evolution of Islamic finance: where is the industry today?
Mehmet Asutay, Lecturer, Durham University
Islamic finance has grown significantly since its emergence in modern form in the 1960s. Today, as a global
industry involving banking, insurance and capital markets, its reach extends beyond traditional Muslim
jurisdictions, and into the western world and the Asia Pacific region. The speaker, a leading scholar on
the development of Islamic finance, will chart the evolution of the sector, identifying recent and long-term
trends and significant developments such as the growth of the sukuk market and the potential for takaful
and other products.
Recent developments in IFSB and AAOIFI standards
JoГ«lle el Gemayel, Research Assistant to the First Vice-Governor, Banque du Liban
Khairul Nizam, Assistant Secretary General, Accounting and Auditing Organization for Islamic Financial
Institutions (invited)
Underpinning regulation of Islamic finance today is a range of prudential and supervisory standards
developed by the IFSB and AAOIFI which have been likened to an Islamic finance equivalent of Basel II. In
December 2010 the IFSB published their standard for solvency requirements for takaful, and are looking
to develop new standards in the near future. It is important for central banks and regulators to stay
abreast of these standards which are constantly being developed. In this session, the speakers will discuss
recent and likely developments in these standards and how a central bank can translate these effectively
into their framework. Group discussion will conclude by addressing the extent to which uniformity of
regulation is both desirable and practical for both Islamic and conventional finance.
About the course chairman
Dr Aly Khorshid has been involved with financial institutions for over
two decades. Drawing on his knowledge of Islamic finance, he has advised
central banks and Islamic banks on regulatory approaches and corporate
governance. He has been active in structuring Islamic home purchase
schemes and Islamic capital market products. His first Shariah board
member role was with bank Al-Baraka, which was the first Islamic bank
in the UK. His roles included dealing with the UK treasury and Bank
of England. He now serves as a Shariah board member within several
Islamic institutions. He has PhD in Islamic studies and economics from the
University of Leeds, studied Fiqh and Shariah at Al-Azhar University in
Egypt and possesses a master’s degree in management.
Wednesday 14 September
Building the regulatory framework
How to implement a domestic regulatory and supervisory framework
Omar Sheikh, Committee Member, UK Treasury Advisory Sub-Committee and Board Member, UKIFC
The development of a legal framework for governing, supervising and regulating Islamic banking may seem like an
obvious stage of progression within a jurisdiction however development around the globe has been uneven with
some jurisdictions at a more advanced stage than others. The United Kingdom is one jurisdiction that has been
praised for establishment of an enabling fiscal and regulatory framework for Islamic finance. This has proved pivotal
for development of the industry not only in the UK, but also in attracting business to the country In this session,
the speaker, a leading authority in the development of Islamic finance in the UK, will draw out lessons from the
UK experience identifying policies developed at governmental and regulatory level and how they worked with the
industry itself.
Licensing and supervising Islamic banks in a dual regulatory system
JoГ«lle el Gemayel, Research Assistant to the first Vice-Governor, Banque du Liban
The Islamic Financial Services Board has outlined concerns that Islamic banking will not be given enough regulatory
attention in dual system states. How are such fears being addressed? Lebanon has made significant progress in
promoting Islamic banking and has authorised a number of institutions including the Lebanese Islamic Bank and Al
Baraka Bank since the central bank developed its regulatory framework for supervision in 2004. In this session, the
speaker will outline the approach the Banque du Liban has taken in implementing Islamic finance in a dual regulatory
system and how to overcome common licensing and regulatory challenges.
Growth and diversity in the market: the experience of Malaysia
Hamim Syahrum Ahmad Mokhtar, Deputy Director, Financial Surveillance, Bank Negara Malaysia
Once a framework is established, central banks and regulators need to ensure it’s robust enough during times of
stress.The Malaysian Islamic financial system is widely recognised as both robust and fast growing with a number of
diverse market participants. These participants include Islamic banks, takaful companies, investment banks, savings
institutions, fund managers, stock brokers and unit trusts. However, with growth comes the potential for risks at
both micro and systemic level. Central banks and standard setters within the jurisdiction have developed a system
designed to ensure the stability of the system but also allow innovation and growth. In this session, the speaker
will provide lessons learned from the central banks experience focusing on mitigating systemic risk and contagion.
Discussion will draw upon some of the industry leading practices currently exercised in the jurisdiction.
Regulatory approaches for risk managing sukuk and takaful products
Sunando Roy, Advisor, Central Bank of Bahrain
Warren Edwards, CEO, Delphi Risk Management (invited)
Sukuk and takaful products are the main stays of Islamic finance today. However, standards and regulation of these
products are at different stages of development. The sukuk market is in the process of recovery following the
Dubai debt crisis, and it has also been suggested that Sharia boards across the Middle East and the Far East have not
reached a conclusion on standards for new issues of sukuk. Takaful has recently been subject to an IFSB standard
and regulators are formulating strategies to supervise the industry. In this session, the speakers will focus on how
regulators should approach the regulation of sukuk and takaful. Specific examples of bank capital calculations used in
various jurisdictions will be provided and discussion will focus on how to develop country specific approaches.
New developments in liquidity management
Ellie Flatter, Liquidity and Prudential Surveillance, Central Bank of Luxembourg (invited)
The lack of a cross-border liquid market infrastructure and instruments for the management of liquidity risk has been
seen to be a long standing issue impacting the development and regulation of Islamic finance. In April 2010, in what
has been viewed as a major triumph for the Islamic financial industry, 11 central banks and 2 multilateral organisations
have recently signed the Articles of Agreement for the establishment of the International Islamic Liquidity Management
Corporation (IILM). This is a significant development which is designed to provide to provide liquid short-term sharia
compliant instruments. In this session the speaker will discuss how the IILM works, the progress it has made, and the
benefits it can provide for central banks, regulators and the Islamic banks that they supervise.
Thursday 15 September
Sharia law and governance
How to Regulate Islamic
Financial Markets
and Products
Autumn 2011
The role of sharia boards and scholars
Aly Khorshid, Director of Islamic Finance Studies, Academy UK and Sharia Board Member
All Islamic banks have a sharia board which governs the products that they trade. It is important that central
banks and regulators understand how they function and the level of influence they have within the banks
that they supervise. It has been argued that Sharia scholars and their differing interpretations across different
banks can lead to a lack of harmonisation which ultimately can impact their effectiveness as a provider of risk
management and compliance within their respective banks. This can be a supervisory nightmare for central
banks and regulators as interpretations can differ across the banks they supervise leading to challenges when
developing a regulatory framework. In this session, led by the chairman, discussion will focus on how effective
Sharia boards are within Islamic banks and what steps need to be taken to ensure the harmonisation of Sharia
interpretations across jurisdictions.
Panel discussion on Sharia governance
Humayon Dar, CEO and Sharia Advisor, BMB Islamic
Muhammad Imran Ashraf Usmani, Sharia board member, State Bank of Pakistan (invited)
Moderated by Aly Khorshid
Sharia advisory boards are an integral part of the governance structure of Islamic banks. In this session,
two well-respected Sharia advisors will debate the pressing issues surrounding Sharia governance and its
relationship with the regulatory framework. Particular attention will be devoted to the composition, make
up and role of Sharia boards. Delegates will be invited to pose questions to the panel and discuss specific
questions they have and challenges they face in this important and often misunderstood area.
Developing talent within Sharia advisory boards
Syed Azhan Syed Ahmad Bakhor, Islamic Capital Market Department, Securities Commission Malaysia
In the third session of the day focussed on the role of advisory boards, the focus will be on developing
relations with the scholarly community. Some observers contend that Sharia advisory boards are limited
to a pool of scholars and that new, young experts need to be recruited to ensure Islamic finance remains
contemporary and flexible. Malaysia has tried to tackle this issue with the development of a Sharia
Governance Framework (SGF) which requires Sharia boards to recruit a younger scholar. In this session,
the speaker will explain how this framework works and offer an assessment discussing how Sharia boards
can evolve through talent development and the role which central banks and regulators can play drawing on
the example of Malaysia.
Being supervised: an Islamic bank’s perspective
Michael Clarke, Chief Executive Officer, European Financial House (invited)
In this session the speaker, a senior figure from an Islamic bank, will discuss the supervision of Islamic banks
from a banks perspective. The speaker will provide a critical insight into the role of regulators and discuss
specific issues in relation to the emerging regulatory framework from a regulated perspective. Discussion
will focus on how central banks and regulators can gain a deeper understanding of the challenges their
respective Islamic banks face in order to develop an appropriate supervisory approach
Friday 16 September
New directions for Islamic finance
Case study: developing a financial hub for Islamic finance
Ali Sakti, Director, Islamic Banking Directorate, Bank Indonesia (invited)
Indonesia currently has 11 banks operating solely in compliance with Islamic finance requirements and a further
23 conventional institutions offering Sharia-compliant services. Islamic banking is seen to be one of the most
rapidly expanding sectors in its economy and is widely considered to play a key role in Indonesia’s economic
development for years to come. In this session, the speaker, a key figure in the development of Islamic finance
in the country, will outline growth plans and identify lessons that can be learnt for central banks to encourage
innovation whilst maintaining stability.
New opportunities for Islamic finance in Europe
Didier Peny, Director, Licensing, Authorisation and Regulation, Banque de France
In 2011, there has been growth in the trading of Islamic financial products from Middle Eastern and far eastern
jurisdictions to Europe. Most notably, Dubai has increased trading of sukuk and other products to France and
Germany due to tax advantages. Luxembourg is also seen to be emerging as a hub for Islamic finance as again,
tax authorities have recognised the specific requirements of Islamic products. In this session, the speaker will
identify the opportunities for growth of Islamic finance in Europe and identify what steps Islamic banks and their
relevant supervisors can take to capitalise on the opportunities that are available.
Lessons learned and action points
Led by the chairman
In this final round-up session, the chairman will revisit the key lessons from the sessions over the course of the
four days. This final workshop session will highlight some the main ideas for further development and reflection,
and will bring the course to a close.
CBP training course/seminar series, Autumn 2011
Human Resources: Engaging People and Facilitating Performance
Communications and External Relations for Central Banks
Effective Oversight of Financial Market Infrastructures
Government Debt Management: New Trends and Challenges
Legal Risks and Good Governance for Central Banks
The Changing Framework of Monetary Policy Operations
Risk Management for Central Banks
New Challenges in Financial Market Supervision & Regulation
Financial independence and accountability for central banks
Maximising the Value of Economic Analysis and Forecasting for Central Banks
IT Governance for Central Banks
For detailed programmes and a fax-back registration form for each
of these key courses, please visit:
Booking details
How to book
Course fee: ВЈ2,700
(VAT at 0% for delegates employed
by government in furtherance of its
sovereign activities)
Please complete and return the
registration form overleaf to:
Central Banking Publications Ltd.
Incisive Media
Haymarket House
28 – 29 Haymarket
London SW1Y 4RX
telephone: +44 (0) 207 968 4530
fax: +44 (0)207 504 3730
4-day (3 nights) residential course
Course fee includes: en-suite
accommodation, meals, refreshments, course
documentation and a complimentary copy of
the most recent issue of the Central Banking
journal. Substitute delegates can be accepted
should the registered delegate be unable to
attend; please let us know prior to the event.
The venue
Christ’s College is one of England’s
oldest university colleges and traces
its origins back to 1439 when it
was founded by William Byngham as
“God’s house” and adopted by King
Henry VI.
The college is conveniently
situated in the heart of Cambridge
surrounded by all the historical
sites, and is one hour by train from
About Central Banking Publications
Central Banking Publications’ events division is the leading independent organiser of public policy
seminars/training courses for the official sector. Since 1997, CBP has hosted roundtable seminars and
training courses for over 3,000 senior policymakers from central banks, ministries of finance and financial
regulatory agencies around the world. Senior officials from more than 120 countries have attended these
meetings over the past ten years.
Registration for How to Regulate Islamic
Financial Markets and Products
Delegate details: Mr/Mrs/Ms: PLEASE WRITE IN CAPITALS
Surname/Family name:
First name:
Job title:
Please provide us with the direct email address of the
delegate and an additional email address if possible.
This is very important because all correspondence
with delegates is by email.
Email 1:
Email 2:
Course fee: ВЈ2,700 (VAT at 0% for delegates employed by government in furtherance of its sovereign activities)
2. Payment details:
Bank transfer: The Royal Bank of Scotland, 62/63 Threadneedle Street, London EC2R 8LA, UK
A/c No: 21975543 Sort code: 15-10-00 IBAN: GB89 RBOS 1510 0021 9755 43 Swift code: RBOSGB2L
Please pay the course fee net of all bank charges and send us the copy of the transfer details
Credit card: please charge ВЈ
to my
Card No:
American Express
Security Code:
Cardholder name:
Expiry date:
Cardholder address (if different from above):
Signature: Cheque: I enclose a cheque for ВЈ
I will require accommodation from
I have read and agree to the terms and conditions below.
payable to Incisive Financial Publishing Ltd.
Terms & Conditions: A refund (less 10% administration fee) will be made if notice of cancellation is received in writing three weeks before the event.
We regret that no refunds can be given after this period. A substitute delegate is always welcome at no extra charge. The programme may change due
to unforeseen circumstances, and Incisive Media reserves the right to alter the venue and/or speakers. Incisive Media accepts no responsibility for any
loss or damage to property belonging to, nor for any personal injury incurred by, attendees at our conferences, whether within the conference venue
or otherwise. Data Protection: By registering for a Central Banking training course you will receive further information relating to this event. In addition
we will send you information about our other relevant products and services which we believe will be of interest to you. If you do not wish to receive
other relevant information from Incisive Media via a particular medium please click the following relevant boxes: mail phone fax email .
Incisive Media will also allow carefully selected third parties to contact you about their products and services. If you do not wish to receive information
from third parties via any of the following media please tick the relevant boxes: mail phone . Please tick if you are happy to receive relevant
information from carefully selected third parties by email and fax .
Registered Office Haymarket House, 28 – 29 Haymarket, London, SW1Y 4RX UK.
Registered in England and Wales number 4252091 VAT No. GB 756 9781 65P.
Без категории
Размер файла
257 Кб
Пожаловаться на содержимое документа