Washington: The International Monetary Fund has held its first consultation with an external advisory group of Islamic finance industry bodies, as regulators across the globe seek to address structural issues in the sector.
Islamic finance, with its core markets in the Middle East and southeast Asia, is under growing regulatory scrutiny as it takes a greater share of the banking sector in several countries.
The nine-member external advisory group includes industry bodies such as the Malaysia-based Islamic Financial Services Board and the Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions.
The group is an IMF initiative which aims to identify policy challenges in the industry and encourage coordination among bodies. The meeting discussed topics including how to improve financing to small and medium- sized businesses as well as the implications for Islamic banks of Basel III regulatory standards.Reuters
