Industry Architecture

 
Islamic Finance Industry has passed through the three decades of its existence. The industry has grown at a remarkable rate and becoming a competitive alternative to conventional or traditional banking around the world. The impressive performance of the industry is partly contributed by the strong financial support infrastructures within the industry itself. The infrastructure includes an effective supervisory system, credible standards of best practices in risk management, internal control systems, disclosures and corporate governance. Basically, the industry has been made up by a number of organizations who are actively involved in promoting and developing the Islamic finance industry globally. 
 

Important International Bodies in Global Islamic Finance Industry

No.

Organisation

Role

Domicile

1.

Islamic Development Bank (IDB)

Established in 1975.

Fosters the economic development and social progress of member countries and Muslim Communities in accordance with the principle of Shariah

Saudi Arabia

2.

Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI)

Established in 1991

Prepares accounting, auditing, governance, ethics and Shariah Standards for Islamic financial institutions and the industry

Bahrain

3.

International Islamic Financial Market (IIFM)

Established in 1991

Focuses on the standardization of Islamic financial products, documentation and related processes at the global level.

Bahrain

4.

Islamic Financial Services Board (IFSB)

Established in 2002

Promotes the development of a prudent and transparent Islamic financial services industry through introducing new, or adapting existing international standards consistent with Shariah principles and recommend them for adoption.

Malaysia

5.

International Shariah Research Academy for Islamic Finance (ISRA)

Established in 2002

Promotes applied research in the area of Shariah and Islamic finance

Malaysia

 

6.

OIC Fiqh Academy

Established in 1998

Studies contemporary problems from the Shariah point of view and finds the solutions in conformity with the Shariah

Saudi Arabia

7.

General Council for Islamic Banks and Financial Institutions (CIBAFI)

Established in 2001

To develop the Islamic financial industry and protect it in various fields such as training and human resoucrs development, information and financial analysis, consultancy, information and awareness

Bahrain

8.

International Islamic Rating Agency (IIRA)

Established in 2005

Assists the Islamic finance industry to gain recognition locally and internationally as strong and capable institutions, adhering to greater standards of disclosure and transparency.

Bahrain

9.

International Islamic Liquidity Management Corporation (IILM)

Established in 2010

Create and issue short-term Shari’ah-compliant financial instruments to facilitate effective cross-border Islamic liquidity management.

Malaysia

10.

International Islamic Centre for Reconciliation  and Arbitration  (IICRA)

Established in 2005

Settles financial and commercial disputes through reconciliation or arbitratio

Dubai

Sources: Organisation’s Website 2014