DEFINITION of 'Islamic Financial Services Board - IFSB'
An international organization that issues guiding principles and standards within the banking, insurance and capital market sectors in order to promote stability in the Islamic financial services industry.
The ISFB consists of:
- The general assembly, which includes all members of the ISFB
- The council, which acts as the policy making body of the IFSB and includes the senior executive of each full member of the organization
- The technical committee, which advises the council on issues and consists of up to 15 persons appointed by the council
- The working group, which drafts standards and guidelines and reports to the technical committee
- The secretariat, which acts as the permanent administrative body and is headed by a secretary-general appointed by the council
BREAKING DOWN 'Islamic Financial Services Board - IFSB'
Based in Kuala Lumpur, Malaysia, the IFSB began operations in early 2003. The IFSB issues standards and principles in the areas of capital adequacy, corporate governance, risk management and transparency, among others.
The goal of the IFSB is to promote the awareness of issues that could have an impact on the Islamic financial services industry. It issues Sharia-compliant standards, holds conferences and seminars, and provides guidance and supervision, among other initiatives.