Improving Banking Supervisory Mechanisms
In the OIC Member Countries
77
5.9 Is there a need for a separate Islamic Banking Regulator?
In fact, IFSB plays an important role in coordinating regulation and supervision in Islamic
economies. Given the number of regulatory institutions both in the EU and the US, a separate
body is also necessary for Islamic banking. Since the growth prospect in Islamic banking is
very high, better coordination and supervision among the OIC member states is crucial.
International bodies such as the Financial Stability Board and European Banking Association
are recent and good examples of financial service authorities. IFSB and other supportive
institutions will be beneficial for Islamic banking.