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COMCEC Financial Outlook 2018

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3.

FINANCIAL COOPERATION UNDER THE COMCEC

The financial cooperation area has great potential for the socio-economic development of the

OIC member countries. However, this potential has not been fully utilized due to several reasons.

First of all, the majority of the OIC Member States’ financial markets are not working efficiently

to support a sustainable economic growth and development, and this issue especially affects the

low and lower-middle income OIC member countries adversely. In addition, various economic

and financial difficulties such as the small size of their financial markets, lack of diversified

financial products and inefficiency of their financial institutions have adverse effects on the

economic development. In this regard, financial cooperation has emerged an important area for

the COMCEC to help the Member States to overcome the issues in this area.

The ideas for enhancing financial cooperation under the COMCEC date back to its initial

meetings. The Cooperation efforts in this area have been intensified and deepened in recent

years. The COMCEC Strategy, adopted by the 4th Extraordinary Islamic Summit in 2012, defined

finance as one of the cooperation areas of COMCEC. Furthermore, there are also several on-going

efforts in this field such as cooperation among the Stock Exchanges Forum, COMCEC Capital

Markets Regulators Forum and the Meetings of Central Banks and Monetary Authorities.

3.1 COMCEC Strategy: Financial Cooperation

COMCEC Strategy defines “deepening financial cooperation among the member countries” as the

strategic objective of the COMCEC in this field. The Strategy identifies, “Regulatory and

Supervisory Cooperation”, “Capital Flows”, “Visibility of Financial Markets”, “Training, R&D

Activities and Statistics” as output areas in its finance section and specifies several expected

outcomes under each of them.

3.1.1 Regulatory and Supervisory Cooperation

COMCEC aims to help improve the quality of regulation, supervision and cooperation among

regulatory and supervisory bodies in the OIC Member States. The expected outcomes defined by

the Strategy are as follows:

Developed legal, regulatory and institutional framework,

More standardized contracts and more harmonized regulations,

Converged listing requirements, trading rules and technical infrastructure,

Strengthened arbitration procedures, credit information and credit registry system, risk

measurement and risk management systems.

3.1.2 Capital Flows

Attracting capital flows at competitive rates is one of the major common challenges faced in the

many OIC Member States. In this regard, COMCEC will support to ease the capital flows within

the member countries through contributing to the removal of institutional and regulatory

barriers and developing relevant platforms. The Strategy envisages the following expected

outcomes:

Enhanced access to capital at competitive rates,

Diversified portfolios,

Increased investment opportunities.