Set standards for Islamic banks, says IDB

The success and expansion of Islamic banks in collaboration with the IMF will require that internationally-acceptable regulatory standards for Islamic banks be developed to promote capital market efficiency, ensure the safety of depositors' funds and shareholders' equity, and protect financial systems from instability. This is the message Dr Ahmad Mohamed Ali, President of the IDB, presented at the Development Committee meeting during the World Bank/IMF Annual Meetings in Prague in September. Although in the year 2000 the global economic environment has been favorable, and IDB member countries have improved their economic performance, these countries continue to face numerous challenges, especially the need to alleviate poverty, which the IDB agrees should top the agenda of the MFI's. The Bank is also committed to fair competition, transparency, and efficient macro-economic management and governance. Capital adequacy has also become a matter of paramount importance in the aftermath of