WORLD - PUBLICATIONS - Empowering Risk Intelligence in Islamic Finance

Empowering Risk Intelligence in Islamic Finance Managing risk in uncertain times

www.deloitte.com - The Islamic Finance Risk Intelligence survey, published by IFKC at Deloitte Middle East, assesses the status quo of risk management practice in the Islamic Finance industry. The report is based on a survey and group of case studies developed during the second half of 2011 encompassing 20 Islamic Financial institutions from the Middle East and South East Asia, with aggregate assets of more than $50 billion, and representing a range of Islamic Financial institutions.

In summary, the following key challenges warrant the attention of Islamic Finance industry leaders and stakeholders: (source and download link report)

WORLD - REGULATIONS - 71% of Islamic institutions implement IFSB's Guiding Principles on Sharia'a Governance, says Deloitte Middle East's Islamic Finance Knowledge Center

www.bi-me.com - BAHRAIN. Top ranking figures from the world of Islamic finance were brought together during an event in Bahrain supported by Deloitte Middle East’s Islamic Finance Knowledge Center.

National regulators, leaders of the key global industry standard-setter the Islamic Financial Services Board, professional services firms, and executive Islamic bankers joined Deloitte experts to focus on the topics of risk management and regulation of institutions offering Islamic financial services, as well as lessons learned from the global financial crisis.

The event took place on December 13 in Manama and was co-organized with the Islamic Financial Services Board (IFSB) and Central Bank of Bahrain.  (source)

FINANCE - GENERAL - Accountancy giant Deloitte calls for tightening of Sharia finance rules

Islamic finance needs more regulation to boost the detection of risk and restore its reputation after a series of financial troubles within the industry’s GCC heartland, says Deloitte & Touche.

A “sizeable” number of Sharia-compliant financial companies were not following industry best practices, the international accounting company found in a survey of the Middle East.

A multilateral framework of rules controlling Islamic finance in the region was needed if the industry was serious about entering new markets, said Hatim el Tahir, the director of Deloitte’s Islamic finance knowledge centre in Bahrain. “Failure cases have triggered interest in more transparency and disclosure,” he said. “Increased corporate governance is needed within the management of Islamic finance products.”

FINANCE - GENERAL - Islamic financial institutions to restructure debts

Mideast finance leaders anticipate reforms in the post global financial crisis climate with 66% believing the industry is under-regulated.

Dubai: Over half of the Middle East's Islamic finance institutions (IFIs) flagged a need for raising capital and are likely to restructure current Islamic debt over the next 12 months, according to Deloitte's Islamic Finance leaders survey in the Middle East, the results of which were released yesterday.

REPORTS - The first Deloitte Islamic Finance leaders survey in the Middle East

This is the first Deloitte Islamic Finance leaders survey in a biannual series targeted at industry practitioners and leaders of Islamic Financial Institutions (IFIs) in the Middle East. The survey is based on interviews conducted with industry leaders between April and June 2010.

Several key themes emerged in the results of this survey. The first is a fair consensus on the need for an effective regulatory framework and good governance. The survey findings emphasize the importance of introducing new or revised regulatory measures–chief among them being Islamic accounting standards and risk management.

LEGAL - 'Islamic finance industry is under regulated'

RIYADH: The total assets of Islamic finance sector in the six-nation Gulf Cooperation Council (GCC) countries, which exceed $600 billion, have prompted the calls for regulating the Islamic finance industry and for imparting more training and skills to professionals working in this area. This was one of the findings of a major survey conducted by Deloitte's Islamic Finance Knowledge Center (IFKC), which was shared by Deloitte's experts, Tuesday.