CBN set to deepen Islamic financial service standards in Nigeria

As part of efforts to sustain the growth of Islamic Banking in Nigeria, the Central Bank of Nigeria (CBN), in collaboration with the Islamic Financial Services Board [IFSB], is currently hosting the fourth technical workshop on how best to deepen the implementation of Islamic Financial Service Standards in the country.

The four-day workshop is also expected to provide stakeholders with a deeper understanding of IFSB-15 Revised Capital Adequacy Standard for Institutions (Other than insurance institutions) offering only Islamic Financial Services [IIFS), IFSB-16 offers guidance on key elements in the supervisory review process for authorities supervising IFS taking into consideration the specifics of the IFS that will ensure a reasonable degree of success at the implementation stage and also address some of the challenges of regulating the non- interest financial institutions.

IFSB, like the Basel Committee is an international standard-setting organization that promotes and enhances the soundness and stability of the Islamic financial Services industry by issuing global prudential standards and building principles for the Industry, in banking, capital markets and in the Insurance sectors.

Declaring open the four day workshop yesterday in Abuja, the Deputy Governor, Financial System Stability, Dr Joseph Nnana stated that the workshop will provide an excellent opportunity for participants to have an interactive dialogue with IFSB team from Malaysia and exchange ideas,experience and perspectives on developments in the area of Islamic Finance, particularly on how to implement IFSB standards in Nigeria.

Dr Nnana, who was represented by the Director Financial Policy and Regulation Department, Kevin, Nanyee Amugo said that more knowledge of the workings of Islamic banking would be gained.

Going down memory lane, he disclosed that since the Apex bank joined the IFSB as a full member in 2009, membership of the board had assisted in strengthening its capabilities to regulate and supervise the licensed non-interest banks and other financial institutions in the country.

Earlier in his remarks, the Assistant Secretary, IFSB Board, Dr Sherif Ayoub described IFSB as a standard safety organization modeled alongside the line of Basel Committee with emphasis one Non Interest Islamic financial standards..

According to him, ‘’At this workshop, we shall be looking at standard IFSB 15 and 16, IFSB which is the revised Capital Adequacy Standards patterned along the Basel Capital accord. Before you can appreciate the rudiments of IFSB 15 and1u, you must also be very knowledgeable in the capital adequacy standards issued by the committee., it is then you will be able to appreciate the differences and similarities of the standards, we enjoined participants to take note in all the papers to be presented at the workshop”.

The CBN Director of Human Resources, represented at the event by Mallam Sani Mbalamu in his remarks said the apex bank would expect a positive impact of the workshop, adding that “ more of this kind of interaction will continue between the VBN and the operators within the country.
“I am sure that IFSB will not be tired in getting the CBN more Information and enlightenment about their activities, he said.