Muscat: The Central Bank of Oman (CBO) has confirmed that it has become a full member of the Islamic Financial Services Board (IFSB), an international organisation that promotes sound Islamic banking and sets standards and principles for Islamic financial institutions.
The announcement comes after the Central Bank of Oman had approached the IFSB to upgrade its membership from observer member to full member, thereby enhancing CBO’s efforts to develop the Islamic banking sector in the Sultanate.
“The Central Bank of Oman (CBO) would like to announce that the Islamic Financial Services Board (IFSB) has resolved to approve CBO’s request to upgrade its membership of the IFSB from an observer member to a full member,” said the bank in a statement. “Full membership of the IFSB enhances CBO’s efforts to develop the Islamic banking sector in Oman.
“Furthermore, it gives CBO the opportunity to take advantage of standards and guiding principles issued by the IFSB, which in turn will help strengthen the regulatory and supervisory frameworks, in order to promote the stability and resilience of the Islamic finance sector,” added CBO.
“In addition, CBO will have enhanced role and participation in the IFSB events by attending the IFSB General Assembly, the right to vote at the General Assembly, receiving technical assistance, and participating in the IFSB programmes such as workshops, roundtables, seminars and conferences from time to time.”
The IFSB is an international standard-setting organisation with the objective to promote and enhance the soundness and stability of the Islamic financial services industry by developing global prudential standards and guiding principles for the Islamic Financial Institutions broadly defined to include banking, capital markets and insurance segments.
IFSB is based in Kuala Lumpur, and officially started operations on March 10, 2003.
“Islamic banks and Islamic Windows started operations in December 2012, which as of today comprises of two full-fledged Islamic banks and six independent Islamic Windows of domestic conventional banks. It has achieved remarkable growth over the past periods,” added the bank.
“This will be reflected in the capacity building of members of the Islamic banking sector and CBO as well, and also help to promote awareness of the general public.”
CBO went on to say, “It has achieved remarkable growth over the past periods. The recent figures show that total assets held by Islamic banks and Islamic windows of domestic conventional banks recorded OMR4.250 billion, gross financing OMR3.461 million, and customers’ deposits recorded OMR3.148 million, while Market share of Islamic banking sector in assets was 13 per cent of the total banking sector in September 2018.”