ISLAMIC BANKING | Staff Reporter, Philippines

ADB, IFSB ink a deal to advance Islamic finance in developing countries

Here's what to expect from the agreement.

The Asian Development Bank and the Islamic Financial Services Board has agreed to facilitate international cooperation through a signed agreement to further advance the progress of Islamic finance in common developing member countries (CDMCs).

The said memorandum of agreement (MOU) gives a main basis for joint activities and general cooperation in areas of common interest, with the objectives as follows: enhance cooperation in the form of joint technical assistance and/or policy-based work in CDMCs; promote the development of Islamic finance, particularly in strengthening the capacity of regulating and supervising Islamic financial services institutions, Islamic capital markets and Islamic liquidity management in CDMCs; and stimulate joint research and exchange of information to be used as critical evidence to support policy areas of mutual interest and to enhance knowledge-sharing between both organisations.

According to Bindu Lohani, ADB vice president for knowledge management and sustainable development, the essence of Islamic Finance in the development of Asia cannot be doubted, as can be seen by the significant increase in Shari'ah compliant financing in a number of ADB's developing member countries in recent years. “We look forward to working even more closely with IFSB under this MOU to address some of the key issues facing our member countries in the areas of financial inclusiveness and infrastructure financing.”

Mr. Lohani and IFSB Secretary-General Jaseem Ahmed signed the MOU on behalf of their institutions at the ADB Headquarters in Manila.

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