How to Regulate Islamic Financial Markets and - Central Bankingкод для вставки
The independent world forum for central bankers and financial supervisors Training course/seminar series 2012 How to Regulate Islamic Financial Markets and Products 4-day intensive residential programme 11 вЂ“ 14 September 2012 ChristвЂ™s College, Cambridge Course chairman: Aly Khorshid Sharia Scholar and Consultant, Academy UK Series adviser: Charles Goodhart, CBE Professor Emeritus London School of Economics Financial Markets Group www.centralbanking.com/events 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 a trillion US dollars across Islamic and non-Islamic countries. Steady growth, however, will require a suitable regulatory framework. Coupled with this exponential growth has been the development of new and innovative products, such as sukuk, and, in recent years, the emergence of a globalised and standardised regulatory infrastructure including the establishment of bodies such as the Islamic Financial Services Board. However, due to the nature of Islamic finance, regulators are facing increasing challenges when licensing and supervising. Moreover many observers feel that if special consideration is not given, Islamic financial infrastructure may be hindered in its ability to maintain stability and achieve continuous growth. This seminar equips regulatory specialists from central banks and supervisory organisations with the tools to tackle the key policy issues in an effective regulatory framework. Delegates will have the opportunity to hear from and question those closely involved with emerging international standards. Key highlights include: вЂў N ew developments in Islamic finance and banking вЂў Liquidity risk management вЂў Domestic and international Islamic financial infrastructure вЂў Licensing and regulating Islamic banks in a dual regulatory system вЂў G ood practice approaches from bank, a scholar and regulatory perspectives вЂў A n Islamic bankвЂ™s perspective of being supervised The panel of expert speakers combines practical regulatory experience as well as views from private sector experts and academics, including: вЂў M ehmet Asutay, Director, Durham Centre for Islamic Economics and Finance вЂў S ayd Farook, Global Head of Islamic Capital Markets, Thomson Reuters вЂў K hairul Nizam, Assistant Secretary General, AAOIFI вЂў J oГ«lle el Gemayel, Research Assistant to the First Vice-Governor, Central Bank of Lebanon вЂў Rifki Ismal, Bank Researcher, Bank Indonesia вЂў A leksandar Devic, Head of Fund Management, Qatar Islamic Bank We are delighted to again welcome Aly Khorshid, Director of Islamic Studies at Academy UK and a serving Sharia board member at numerous banks to perform the role of chairman. The format, as more that 3,500 central bankers 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 ChristвЂ™s College this year. Yours sincerely, Robert Pringle Chairman Central Banking Publications Tuesday 11 September New developments in governance How to Regulate Islamic Financial Markets and Products Autumn 2012 ChairmanвЂ™s opening remarks: challenges ahead for regulators of Islamic finance Led by the chairman Aly Khorshid, Sharia Scholar and Consultant, Academy UK 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 regulatory system and explain their most pressing regulatory and supervisory challenges. This session is an opportunity for delegates to benefit from each otherвЂ™s expertise and experience in confronting common problems. Overview of governance framework вЂ“ new developments Richard Tredgett, Lecturer, Partner, Allen & Overy The Islamic financial market has grown rapidly over the past decade. As new products and instruments emerge in this vibrant market, well-established corporate governance becomes vitally important for future development. This session will provide an overview of new governance frameworks introduced across several jurisdictions and analyse their advantages and disadvantages. Particular attention will be given to the relationship between Islamic bank supervision, Pillar 2 of Basel II and the Islamic Financial Services Board (IFSB) standards on supervisory standards. Ethical issues and Islamic finance Mehmet Austay, Director, Durham Centre for Islamic Economics and Finance Islamic finance has grown significantly since its emergence in modern form in the 1960s. 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 and director in the development of Islamic finance, will chart the evolution of the sector, identifying recent and long-term trends and significant developments his focus will be how to maintain and further and enhance the ethical image of Islamic finance in the global market. 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 masterвЂ™s degree in management. Wednesday 12 September Building a robust regulatory framework Risks faced by Islamic banks: what are they and how do we deal with them? Sayd Farook, Global Head of Islamic Capital Markets, Thomson Reuters After the Dubai debt crisis, various structures were accused of being not вЂ“ in fact вЂ“ Sharia compliant. Central banks and regulators have to comprehensively assess the risk profile of Islamic banks, and indeed conventional banks with Islamic windows, to effectively supervise their products and mitigate systemic crisis. In this session, the speaker will discuss the risk factors particularly associated with Islamic products and institutions in the context of international standards for capital requirements. Liquidity risk management: the new liquidity principles Sayd Farook The IFSB introduced new guiding principles on liquidity risk management in March 2012. This significant development by the standard setter outlined important ingredients for supervisory frameworks to have to monitor liquidity positions including contingency planning for institutions offering Islamic financial services (IIFS). This session, the second led by a prominent expert in Islamic finance from Thomson Reuters, will look at the implications and applications of these new principles. Delegates will be challenged to consider how these will impact the supervisory architecture in their home jurisdictions. The challenging and changing roles of the IFSB and AAOIFI Khairul Nizam, Assistant Secretary General, AAOIFI 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 Basel accord. In order to maintain the rapid growth of Islamic finance industry and clear the way for a global market in the future, AAOIFI outlined a sweeping review of its guidelines in April 2012. This will be the biggest shake-up in years in the Islamic finance industry with wide ranging implications for markets and their overseers. In this session, the speaker, who is closely involved in the review, will set out the thinking behind it. Group discussion will consider the impact on consumers and providers of Islamic finance products. Licensing and supervising Islamic banks in the dual regulatory system Joelle el Gemayel, Assistant to First Vice Governor, Central Bank of Lebanon The IFSB 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 Central Bank of Lebanon has taken in implementing Islamic finance in a dual regulatory system and how to overcome common licensing and regulatory challenges. Panel discussion: towards a standardisation of Islamic financial products Aly Khorshid and Sayd Farook In contrast to conventional Western banking, the Islamic financial industry does not have a well-established cross-border standard for a range of factors, from product design to market practice. This inconsistency necessarily makes for disjointed markets as well as giving rise to inappropriate usage of Islamic financial facilities, misunderstanding of Islamic financial instruments, and, more importantly, huge regulatory challenges for reporting. This session, will make the case to encourage global collaboration, to set up sharia advisory panels, and to conclude a master agreement for treasury placement (MATP). How to Regulate Islamic Financial Markets and Products Autumn 2012 Thursday 13 September Implementing Islamic financial regulations Regulating Sharia boards: potential challenges faced by regulators Aly Khorshid All Islamic banks have a sharia board which governs the products that they trade. The board is an integral part of the corporate governance structure within an Islamic bank. Moreover, it is vitally important that central banks and regulators understand how they function and the level of influence they have. It has been argued that Sharia scholars and their differing interpretations across different banks can lead to a lack of harmonisation. This can create problems within banks and more broadly for the 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. Regulatory challenges in new products: case studies from the sukuk market Aleksandar Devic, Head of Fund Management, Qatar Islamic Bank In the past 18 months there has been significant growth in the trading of Islamic financial products from the Middle East and Far East jurisdictions to Europe. Most notably, Dubai has increased the trading of sukuk and other products to France and Germany due to tax advantages in the respective countries. In this session, the speaker, an expert from a prominent UK based Islamic asset manager will identify these challenges in the context of sukuk as well as identifying new opportunities for growth in this emerging form of financial intermediation in Europe. Group discussion will focus on supervisory approaches for central banks and regulatory bodies for new Islamic product launches. Panel discussion: what constitutes good practice supervision? Rifki Ismal, Bank Researcher, Bank Indonesia Aly Khorshid Aleksandar Devic In this session, delegates will be invited to pose questions to a panel of experts to address some of the key challenges facing central banks regulating Islamic banks and windows. In this session, the speaker will draw out lessons showing how taking a вЂ�broadвЂ™ regulatory view can create conditions for stable growth in these markets. The course has been extremely beneficial, it has introduced new ideas and reinforced old ones A central bank delegate This is a good seminar to discuss and share our experiences and broaden your network A central bank delegate Friday 14 September Global experiences: the future of Islamic finance Islamic financial products in non-Islamic countries Simon Archer, Professor, University of Reading No one denies that Islamic finance is an opportunity.Yet, it presents a host of different considerations for the regulated and the regulators. In this session the speaker will outline the challenges regulated banks face and what regulators should take into consideration when undertaking supervision and surveillance. Discussion will focus on how regulators from non-Islamic countries should approach the supervision of their Islamic banks. Lessons and action points Led by Aly Khorshid In this session, the chairman will review the key lessons from the presentations and discussions throughout the course. Delegates will be asked to reflect on how the lessons learnt over the four days can be applied at their home institutions and how emerging risks can best be managed. The conference was valuable in bringing us together and allowing networking in highlighting issues of common concern A central bank delegate CBP training course/seminar series, Autumn 2012 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 and 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: www.centralbanking.com/events 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 Incisive Media Haymarket House 28 вЂ“ 29 Haymarket London SW1Y 4RX UK telephone: +44 (0) 207 968 4530 fax: +44 (0)207 504 3730 email: firstname.lastname@example.org website: www.centralbanking.com/events 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. 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