The IFSB issues revised compilation guide on prudential and structural Islamic financial indicators, 2019
The Islamic Financial Services Board (IFSB) is pleased to announce the issuance of Revised Compilation Guide on Prudential and Structural Islamic Financial Indicators (PSIFIs), 2019. The Revised Compilation Guide was approved by the IFSB Council in its 35th meeting held in Dhaka, Bangladesh on 11 December 2019.
The PSIFIs Compilation Guide is a comprehensive document, which provides information on key indicators, compilation procedures, aggregations and consolidation procedures, etc. It provides assistance to the data suppliers, data compilers as well as the users of the PSIFIs data.
The first Compilation Guide was issued by the IFSB in 2007, which was later updated in 2011. Some additional changes were made in the list of indicators and compiled in the Supplement to Compilation Guide on PSIFIs, 2015. In addressing latest global and domestic regulatory developments, the revised version of Compilation Guide on PSIFIs, 2019 covers guidance on collection, compilation and dissemination of PSIFIs for banking, capital markets and takaful institutions offering Islamic financial services.
The Compilation Guide, which aims to act as a guide for standardising the methodology of data compilation and dissemination among institutions offering Islamic financial services, marks the completion of the baseline of the database development. The main objectives of the PSIFIs as explained in the Guide are:
- to facilitate the monitoring and analysis of the soundness and stability of the IFSI through a set of prudential, structural, and financial strength indicators;
- to support and help coordinate the formulation, development, and enhancement of appropriate international prudential standards by the IFSB;
- to help promote the development of the IFSI as a vehicle for stimulating economic development and reducing disparities in economic progress between nations;
- to help strengthen transparency and international comparability of domestic IFSI in order to facilitate their integration into the international financial system through public accessibility to the PSIFIs and other published cross-country industry data in IFSB research reports; and
- to help ascertain the market shares of Shariah-compliant financial transactions, products, and services as a percentage of the entire financial system, at both the national and global levels, so as to gauge the performance of the IFSI at any given time.
On the issuance of Compilation Guide, Secretary General of the IFSB, Dr. Bello Lawal Danbatta stated: “the PSIFIs is consistent with other international financial statistics such as the Financial Soundness Indicators prepared by the International Monetary Fund (IMF) and is adapted appropriately to cater for the specificities of Institutions offering Islamic Financial Services (IIFS).” He further noted, “Now we look forward to enhance the database by expanding to Islamic capital markets and takaful sectors, while the PSIFIs project for the Islamic banking sector has reached an advanced and sustainable stage with coverage of over 95% of global Islamic banking activities.”
The IFSB Task Force on PSIFIs – comprising representatives of participating jurisdictions and three international organisations – the IMF, Islamic Development Bank (IsDB) and the Asian Development Bank (ADB) has greatly supported IFSB Secretariat in reviewing the Guide at different stages. The Secretariat is also grateful to the regulatory and supervisory authorities that are members of the IFSB for providing useful comments on the draft Compilation Guide during member’s consultation.
The Compilation Guide is available for download from the IFSB website: www.ifsb.org