Glossary
IFSB
Islamic Financial Services Board: the Kuala Lumpur-based body that writes prudential standards for Islamic finance, the equivalent of banking supervision rules rather than religious rulings.
The IFSB issues standards on capital adequacy, risk management, governance and supervision for Islamic financial institutions. It is complementary to AAOIFI rather than competing with it: AAOIFI answers whether a product is permissible, the IFSB answers whether a bank offering it is prudently run. The IFSB's own standards were not read in this research pass and no specific IFSB standard is cited elsewhere in these files.
Related terms
AAOIFIThe Bahrain-based body that writes the standards most Islamic banks are measured against.IIFAThe International Islamic Fiqh Academy, the OIC's own council of scholars, whose resolutions carry great weight across the Muslim world.SACShariah Advisory Council: Malaysia's national body whose rulings on Islamic finance bind the industry and are a reference for the courts.
Sources
- No IFSB primary document was read in this pass