Financial Outlook of the OIC Member Countries 2016
34
5 FINANCIAL COOPERATION UNDER THE COMCEC
Since member countries face with some economic and financial obstacles such as the small size
of their financial markets, lack of diversified financial products and inefficiency of their
financial institutions, the majority of the OIC Member States’ financial markets are not efficient
to support a sustainable economic growth and development, especially in low and lower-
middle income OIC countries. Therefore, COMCEC aims to help the Member States to overcome
the difficulties faced in the area of financial cooperation.
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, the cooperation among the Stock Exchanges Forum, COMCEC Capital
Markets Regulators Forum and the Meetings of Central Banks and Monetary Authorities.
5.1 The COMCEC Strategy: Financial Cooperation
COMCEC Strategy identifies “deepening financial cooperation among the member countries” as
the strategic objective of the COMCEC in this field. The Strategy point outs, “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.
5.1.1 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.
5.1.2 Capital Flows
One of the main common challenges confronted in many OIC Member States is attracting
capital flows at competitive rate is. In this regard, COMCEC will support to ease the capital
flows within the member countries through contributing to 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.