MANAMA: The General Council for Islamic Banks and Financial Institutions (Cibafi) and the World Bank have launched their first joint publication titled “Corporate Governance Practices in Islamic Banks 2017” in Manama during the fifth meeting of the Members Consultative Group.
The two have been working closely for development of the Islamic finance industry under a memorandum of understanding signed in July 2015.
In March last year, Cibafi published a briefing note on corporate governance that drew attention to important developments in the field in recent years, and the need to update standards on corporate governance for Islamic banks to take account of those developments.
The study underlying this first joint report breaks new ground in the field of corporate governance for Islamic banks, said a statement from Cibafi.
Its methodology is academically rigorous. Its findings and conclusions are easily accessible, and they have clear implications for the day-to-day governance of Islamic banks.
Cibafi secretary general Abdelilah Belatik said: “Both of us agreed that there was a need for a robust analysis of current corporate governance practices within the Islamic banking industry. Such analysis would serve as the basis for further work in the field of corporate governance by generating policy recommendations that would then prompt practical steps to strengthen areas of governance that are currently weak.”
World Bank head of Islamic finance, finance and markets Abayomi Alawode said: “This report will be read widely within the Islamic financial industry, by individual institutions seeking to improve their governance practices and by regulators who are looking to strengthen the financial systems that they oversee.”
“We also hope that it will also be read widely outside the Islamic financial industry. The report will serve as a benchmark for future work, enabling the industry to track its progress, particularly in the areas that have been identified as those most in need of improvement,” he added.
Cibafi, an international organisation established in 2001, is affiliated to the Organisation of Islamic Co-operation.
Headquartered in Bahrain, Cibafi has more than 120 members from 32 jurisdictions, representing market players, global intergovernmental organisations, professional firms and industry associations.
It represents the Islamic financial services industry globally, defending and promoting its role, consolidating co-operation among its members, and with other institutions with similar interests and objectives.