World Bank Partner Institutions on Islamic Finance

This is a list of World Bank partner institutions, national regulators and other institutions involved in the Islamic financial industry. In addition, the page provides links to external resources to search for existing Businesses offering Islamic Financial Services and their websites.

Islamic Financial Services Board (IFSB)
The IFSB is an international standard setting body of the regulatory and supervisory agencies that have vested interest in ensuring the soundness and stability of the Islamic financial services industry.

The IFSB is based in Malaysia and has been in operation since March 2003. The IFSB has begun the development of two prudential standards for the Islamic financial services industry namely, Capital Adequacy and Risk Management standards. These two standards are expected to be issued by early 2005. The development of international standards and best practices for the Islamic financial services industry by the IFSB will complement the work of other international organizations such as the Bank of International Settlements’ (BIS) Basle Committee on Banking Supervision, the International Organization of Securities Commissions (IOSCO), and the International Association of Insurance Supervisors (IAIS).

The World Bank, along with the IMF and other international organizations, is an associate member of the IFSB.

Islamic Development Bank (IsDB)
The Islamic Development Bank is an international financial institution whose purpose is to foster the economic development and social progress of member countries and Muslim communities individually as well as jointly in accordance with the principles of Islamic Law. The functions of the Bank are to participate in equity capital and grant loans for productive projects and enterprises besides providing financial assistance to member countries in other forms for economic and social development. The Bank is also required to establish and operate special funds for specific purposes including a fund for assistance to Muslim communities in non-member countries, in addition to setting up trust funds.

The Bank is authorized to accept deposits and to mobilize financial resources through Shariah compatible modes For more on the organization and its dependent institutions.

Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI)
The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is an Islamic international autonomous non-profit making corporate body that prepares accounting, auditing, governance, ethics and Shariah standards for Islamic financial institutions. It has so far issued 57 standards on accounting, auditing, governance, ethical and Shariah standards.
World Bank Resources
The Consultative Group to Assist the Poor (CGAP)
Microfinance Gateway - the premier source of information for and about the microfinance industry. An Arabic Microfinance Gateway will be launched in 2005.
International Finance Corporation - Finance
Other Institutions

Islamic International Rating Agency (IIRA)
Launched in 2002, the Bahrain-based IIRA is aimed at rating and evaluating Islamic banks and instruments, as well as providing an independent assessment and opinion on the likelihood of a future loss of the rated entity or financial instrument. It also provides an independent assessment of compliance by the entity or instrument with Shariah principles. It is a project initially promoted by the Jeddah-based Islamic Development Bank (IDB) and various Islamic banks, with the support of the Bahrain Monetary Agency (BMA). Its shareholders include the IDB and its affiliates, leading industry players from different geographic regions, as well as international rating agency, Capital Intelligence, and domestic rating agencies from Malaysia and Pakistan.

Liquidity Management Center
The LMC was established in Bahrain in 2002 to develop an active secondary market for short-term Shariah compliant treasury products to help Islamic financial institutions manage their asset-liability mismatches through inter-bank money market operations.

International Islamic Financial Market (IIFM)
The IIFM began operations in April 2002 ; It arose out of a cooperative agreement between the Islamic Development Bank, Bahrain Monetary Agency, the Central Bank of Indonesia, the Labuan Offshore Financial Services Authority (representing Malaysia), the Central Bank of Sudan and the Ministry of Finance of Brunei Darussalam. The primary purpose of the IIFM is to provide a cooperative framework to ensure the continued growth of an Islamic financial market, based on Shariah rules and principles, as a viable alternative to the conventional banking system.

Its role includes the promotion of harmonization and convergence of Shariah interpretations in developing Islamic banking products and practices that are universally acceptable as well as the involvement of a large number of Islamic financial institutions in the market through the introduction of a wide range of Shariah compliant products and the creation of an active secondary market.

General Council for Islamic Banks and Financial Institutions (GCIBFI)
The General Council for Islamic Banks and Financial Institutions (GCIBFI) is an international non-profit organization formed jointly by the IDB and many other Islamic Financial Institutions. Based in Manama, Bahrain GCIBFI promotes and supports Shariah compliant banks and financial institutions of all sizes, especially on issues of international importance for these institutions and their customers. Member Islamic Banks and Financial Institutions come from different countries, including the United Arab Emirates, Kuwait, Malaysia and many others. They include Islamic Commercial Banks, Islamic Windows and Departments in conventional banks, Islamic Investment Banks, Islamic Funds, and Islamic (Takaful) Insurance Companies.

National Regulators Involved in Islamic Finance
Bahrain Monetary Agency
Bangladesh Bank
Ministry of Finance, Brunei
Central Bank of Egypt
Bank Indonesia
Central Bank of the Islamic Republic of Iran
Central Bank of Jordan
Central Bank of Kuwait
Banque du Liban, Lebanon
Bank Negara Malaysia
The Federal Reserve Bank of New York
State Bank of Pakistan
Qatar Central Bank
Saudi Arabian Monetary Agency
Bank of Sudan
Central Bank of United Arab Emirates
The Financial Services Authority, UK
Dubai Financial Services Auhtority

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