View this email in your browser
Hi and greetings from MIFC. 
“New Standards, New Achievements and New Year!”
Once again, we bring you a round-up of exciting news in the world of Islamic finance. Thank you for being with us in 2018 and let us know if you have any feedback and idea to improve this newsletter. Hope to see you again soon in 2019!

The MIFC Team


 
The IFSB Council Adopts Three New Standards for the Islamic Financial Services Industry
The Council of the Islamic Financial Services Board (IFSB) in its recent meeting has approved the adoption of three new standards. The three new standards are; IFSB-20: Key Elements in the Supervisory Review Process of Takaful / Retakaful Undertakings [Islamic Insurance Segment]; IFSB-21: Core Principles for Islamic Finance Regulation [Islamic Capital Market Segment]; and IFSB-22: Revised Standard on Disclosures to Promote Transparency and Market Discipline for Institutions Offering Islamic Financial Services (IIFS) [Banking Segment]. Read more
 
IIFM to Establish New Standards
The International Islamic Financial Market (IIFM) will publish two standards relating to trade finance soon, and two more on Sukuk Ijarah and Sukuk Mudarabah respectively are under development and expected to be issued next year. The IIFM is looking to develop standardized gold-related documentation, also expected in 2019. The IIFM also received approval to translate its standards to other languages starting with the French, Bahasa Indonesia and Turkish languages, and is planning to collaborate with consultants and training institutes to provide training materials on IIFM standards. Read more
 
Memorandum of Understanding between Bank Negara Malaysia and Dubai Financial Services Authority
Bank Negara Malaysia (BNM) and Dubai Financial Services Authority (DFSA) signed a Memorandum of Understanding (MoU) on supervisory cooperation for effective supervision of banking and insurance/takaful/reinsurance institutions operating in both countries. The MoU signifies continuous efforts to promote financial stability in both jurisdictions. These specific areas of cooperation are timely as regional and international trade and investment linkages continue to expand with increasing cross-border banking and insurance/takaful/reinsurance activities in both countries. Read more
 
Islamic Business & Finance Southeast Asia Awards 2018 
Malaysian firms providing Islamic finance services including banks, takaful operator, Shariah advisory, training institute, rating agency and law firm bagged 25 out of 29 award categories at the second Islamic Business & Finance Southeast Asia Awards gala dinner held in Kuala Lumpur recently. The Lifetime Achievement Award was conferred to Dr. Zeti Akhtar Aziz, former Governor of Bank Negara Malaysia for her invaluable support to Islamic finance industry. Read more
 
Islamic Finance Back on Solid Growth Track
Islamic Corporation for the Development of the Private Sector (ICD) - Thomson Reuters just released the Islamic Finance Development Report 2018. The report highlights strong figures for the Islamic finance industry and positive growth in the near future. According to the report, the global Islamic finance industry grew by 11% in 2017 compared to the previous year to USD2.4tn in assets and showed compounded annual growth of 6% since 2012. These figures are based on data collected from 56 countries with Islamic finance industries, mostly in the Middle East and South and Southeast Asia, and there from a total of 1,389 fully-fledged Shariah-compliant financial institutions and windows. Read more
 
VBI: The Next Impetus for Malaysia’s Islamic Banking Sector
Malaysia’s goal of developing itself into a global hub of Islamic finance underpins the sturdiness of the domestic Islamic banking sector. As at the end of September 2018, the year-on-year growth of the country’s Islamic financing (+RM57.5 billion (USD13.8 billion)) outperformed the expansion of conventional bank loans (+RM32.1 billion (USD7.7 billion)), as several major players’ Islamic-first strategies had gained further traction. Islamic banking assets were valued at RM684.2 billion (USD164.21 billion) as at the end of September 2018, translating into a market share of 26.2%. Read more
 
ICD Plans Blockchain-based Tool for Islamic Banks
The Islamic Corporation for the Development of the Private Sector (ICD) plans to introduce a blockchain-based product to help Islamic banks manage their liquidity needs. The first product would be a commodity-based interbank market that would help conventional and Islamic banks to transact with each other. ICD said by using blockchain for asset and liability management of Islamic banks would help them reduce costs, execution time and address issues related to transparency and traceability of transactions. Read more
 
Key Dates
January:
Islamic Finance Rendezvous Series 
14 Jan 2019
Eastin Hotel, Penang
Other Stories
If you have enjoyed this issue of Epicentre or found it useful, feel free to forward it to a colleague or friend. If this newsletter was forwarded to you, and you would like to be added to the mailing list, subscribe here

Copyright © 2018 Bank Negara Malaysia. All rights reserved.
Please log on to www.mifc.com for more information. 
 
DISCLAIMER: The copyright and any other rights in the selection, coordination, arrangement and enhancement of the information in this electronic newsletter are owned by Bank Negara Malaysia. No part of this electronic newsletter may be modified, reproduced or published without prior permission in writing from Bank Negara Malaysia and the relevant copyright owner. Although every effort has been made to ensure the timeliness, accuracy, adequacy and completeness of this electronic newsletter, Bank Negara Malaysia accepts no responsibility or liability for errors or omissions, if any. The information contained in this electronic newsletter is only up-to-date at the time of transmission, and is not exhaustive and may be updated from time to time on the website: www.mifc.com. Bank Negara Malaysia shall not be liable for loss or damage caused by viruses transmitted by this electronic newsletter. Bank Negara Malaysia is not responsible for any unauthorised changes made to the information in this electronic newsletter or for the effect of such changes. Bank Negara Malaysia appreciates any feedback or suggestions for improvement.