The role of IDB - strengthening Islamic banking supervisory capacities

This article is excepts of an address given at the Conference on Financial War on Terrorism, in London. It outlines the stance of the Islamic Development Bank (IDB) and the regulatory steps and standards it has and plans to undertake in order to help promote growth in the Islamic finance sector and to counter terrorist activity within these institutions. The overall goals of the IDB are to promote economic development within member countries and Muslim populations in accordance with Islamic principles, and coordinate the development of formal Islamic financial markets. The nature of Islamic banking places it more firmly in line with ethical business practices and even greater moral values of benefit to society. Regulation and supervision are critical to financial stability.