Financial technology has opened many new means for the financial sector that Islamic finance can benefit from, Central Bank of Bahrain Governor Rasheed Al Maraj has said.
He was speaking during the opening of the 17th edition of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and the Islamic Development Bank Group (IsDB) annual Islamic banking and finance conference at the Crowne Plaza in Bahrain.
Being held under the auspices of the Central Bank of Bahrain, the two-day conference is themed ‘Economic Resilience and Governance in Disruptive Times’.
Calling on Islamic banks to look at new emerging business models as an opportunity to compete with their conventional peers, Mr Al Maraj said fintech has levelled the playing field.
“There is a need for Islamic finance institutions to take a strategic step in the face of current technological advances and assume a leadership role before it is too late,” he added.
The CBB Governor asserted that Islamic finance institutions can build the ability to bring about a change in the style and methodology of their work due to recent technological developments, while preserving their unique identity.
He also noted that in view of the increasing use of Islamic windows, the initiative of the conference to discuss governance issues around windows comes at the right time in order to ensure a level playing field with Islamic banks.
“Accordingly, we look forward to your recommendations on how to create a more robust governance model for Windows to ensure proper Sharia governance.”
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