National and Global Islamic Financial Architecture:
Prolems and Possible Solutions for the OIC Member Countries
223
coordinate to establish an Islamic Monetary Fund (IsMF) that can perform the function. The
role of IsFM will be to either provide Shariah compliant liquidity or coordinate arranging
liquidity from other central banks by using swap arrangements.
As the Islamic financial sector is evolving, application of the standards and guidelines to
strengthen the financial architecture would require improving the knowledge and skills of the
personnel working in different infrastructural institutions at the national levels. The case
studies indicate that there is lack of understanding of Islamic finance related issues among the
infrastructure related institutions such as regulatory bodies. SBIF in coordination with IDB
have created technical assistance programs to provide education and training to relevant staff
and employees of different infrastructural institutions.
Table ‎7.15: Suggested New International Infrastructure Institutions and Initiatives
Infrastructure
Institutions
Institutions for
Conventional Finance
Suggested Institutions and Initiatives for
Islamic Finance
Legal Infrastructure UNCITRAL, World
Bank, ADB (Law &
Policy Reform
Program)
Create a new body/entity Stability Board for
Islamic Finance SBIF (either by OIC/COMCEC or
D-8)
IDB can initiate Islamic Law & Policy Program
Regulation &
Supervision
Framework
BSBC, IOSCO, IAIS Strengthen IFSB (have three Assistant Secretary
Generals for Banking, Takaful and Capital
Markets)
Shariah Governance
Regimes
N.A. SBIF coordinate the Shariah issues with AAOIFI,
IsFA, IFSB and IIFM
Liquidity
Infrastructure
IMF Establish IsMF to develop liquidity management
framework in coordination with IDB IFSB, IIFM,
IILM and LMC
Information
Infrastructure &
Transparency
IFSR, World Bank
(FSAP), FSB
SBIF coordinate accounting and auditing issues
with AAOIFI, IFSB and IIRA
Consumer
Protection
Architecture
IADI, OECD, World
Bank
SBIF coordinate accounting and auditing issues
with IFSB, CIBAFI, IADI
Human Capital &
Knowledge
Development
N.A. SBIF and IDB can coordinate with AAOIFI, CIBAFI,
GIFDC, IDB, IFSB SBIF and IsMF and develop
technical assistance programs to enhance
knowledge and skills related to Islamic financial
architecture