The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) has approved and issued a new Shariah standard named ‘Payment Cards’ (Shariah Standard 61) in collaboration with Visa, the international card company. Why it Matters? The standard was issued by the joined efforts of the Board, the drafting committee and the General Secretariat, collectively ensuring the fulfilment of all the criteria of the due process towards the final stage of development. The new standard is accessible through AAOIFI’s websi...

Bangladesh has requested assistance from the Islamic Development Bank (IsDB) for funds to procure vaccines against the coronavirus and for Small and Medium Enterprises (SMEs) in the country. This request was proposed at the IsDB Group annual conference held in Uzbekistan, which ended on the 4th of September 2021. Why it Matters? Tofazzel Hossain Miah, Secretary to the Prime Minister's Office of Bangladesh said that as the IsDB has played a major role in the economic development of Bangladesh since 1976, the country...

European Banking Supervision signals that the clock is ticking on their integration of climate & environment riskRegulatory warning of consequences for 'outliers' who don't integrate climate risk have similar messages internationallyRegulators expect action even amidst uncertainty, and financial institutions are expected to find ways to act with the data they have European financial institutions’ approach to climate and environmental (C&E) risks are often seen as world-leading, yet many European banks are lagging behind where they need to be on C&E risks, according t...

The Islamic Development Bank Institute (IsDBI) and the World Bank have jointly developed and launched a report focusing on the important aspects of Islamic finance relating to infrastructure public-private partnership (PPP) projects. The report, entitled ‘Reference Guide: Islamic Finance for Infrastructure PPP Projects’, was launched during the 15th IsDB Global Forum on Islamic Finance held virtually on the 28th of August 2021 in the lead up to the 2021 IsDB Group Annual Meetings.  Why it Matters?  The Reference Guide encom...

The Islamic Development Bank (IsDB), has launched a new Resilience Index to help policymakers create mechanisms that support economic resilience in the aftermath of the COVID-19 pandemic. The index was launched during a session of the 2021 IsDB Group Annual Meetings taking place in Tashkent, Uzbekistan, according to a statement issued on the 1st of September 2021.  Why it Matters?  The Resilience Index will assist policymakers from IsDB’s 57 member countries keep track of whether they are making progress in efforts...

An OECD white paper investigates some approaches to transition finance to draw some conclusions about where common ground existsThe taxonomy approach to ‘labeled’ bonds may be insufficient for transition finance, and creating alternative frameworks will be very important for Islamic marketsThe interplay between climate science and more localized economic considerations make transition finance more dynamic than ‘green’ or ‘climate’ finance where taxonomies have driven significant clarity for responsible finance  Standards have been developed in...

The Islamic Financial Services Board (IFSB) has announced that the Central Bank of Saudi Arabia is to host the biggest gathering of Islamic financial services in November 2021 in Jeddah., The theme of the 15th Summit for Islamic Financial Services is: Islamic Finance and Digital Transformation: Balancing Innovation and Resilience. Why it Matters?  The summit is to focus on strategies to promote the Islamic financial system's growth and development by encouraging innovation, technology accessibility and sustainability, as...

According to Moody’s Investors Service (Moody’s), Indonesia’s fragile economic recovery is likely to be hampered by the second surge of COVID-19 and associated lockdowns.  Why it Matters?  Moody’s lowered its forecast growth for Indonesia’s economic recovery in 2021 to 3.6%, slower than its earlier projection of 4.5%. If the vaccination rollout does not pick up pace, the adverse economic effects are anticipated to persist going into 2022, bringing the growt...

Following the implementation of Shariah-compliant procedures, Ipmuda has become Malaysia's first completely Shariah-compliant building materials and solutions trading house. Why it Matters?  The procedures have been designed to encourage socially responsible and ethical business operations via transparent contractual terms and obligations, removing hidden caveats or circumstances, notably in terms of fees or charges. Jeffri M Yusup, Chief Executive Officer at Ipmuda, said that among other things, these procedures help in eliminating uncompetitive bargaining practic...

On the 31st of August 2021, Moody’s Investors Service (Moody’s) revised Turkey’s economic growth forecast for 2021 increasing it to 6% from an earlier 5%.  Why it Matters? The tourism sector in Turkey recovered significantly over the past few months keeping in line with the global economic recovery and the progress of the vaccination drive to tackle COVID-19. During the second quarter of 2021, the services sector led the economic growth increasing to 45.8% annually with the industry sector growing to 40.5% and the information and co...