Kuwait: The governor of the Central Bank of Kuwait Dr. Mohammad Alhashl Permanent Bank's keenness on the exercise of supervisory and regulatory role objectively and professionally and impartially building on international best practices.
He Alhashl in a speech during the opening of the Conference (Shura) idiosyncratic sixth, which was launched today that the (central) prepared a special comprehensive guide to Islamic banks includes a detailed set of policies, standards and controls that embody the application of advanced techniques supervisory same format followed in conventional banks taking into account the nature of the the work of Islamic banks and the quality of the risks and challenges associated with the products and tools of the Islamic financial industry.
He said that such forums have a profound impact in promoting the interdependence of developments in Islamic banking and financial transactions between assets and norms of jurisprudence and legitimacy noting that this communication helps to explore new horizons contribute to the further consolidation of the growth and development of Islamic banking and finance industry on the basis of sustainable.
He said that what Alhashl witnessed in Islamic banking and finance work has become clear about the tangible growth, which was launched four decades ago in surpassing the limits of the geographical extension of the Islamic world to the growing diversity of tools and products day after day.
He explained that this pace of growth of the Islamic financial industry reached an advanced degree of sophistication involved, including that of the emerging challenges and opportunities more expansive for further growth and prosperity.
Alhashl said that the financial services market is measured by the size of the global Islamic total assets in excess of about 2 trillion US dollars at the end of 2014, compared with a value of about 8.1 trillion at the end of 2013 growth of 6.16 percent.
He added that the value of bank assets to an Islamic recorded annual growth averaged about 6.17 percent during the period from 2009 to 2013, which confirms the strength to attract Islamic finance in various countries around the world, Maaeks acceptable and comfortable with a wide range of dealers to the principles and foundations of Islamic finance, especially Maitalq the principle of participation in the profit and loss and the principle of linking financing instruments with activities and real sectors of the economy.
He explained that the evolution of the structure of Islamic financial industry stands on the four basic pillars is the first of the existence of a legal environment and legislative sophisticated and secondly the presence of regulatory framework and regulatory discreet and flexible while is the third pillar to the availability of qualified human cadres scientifically trained practically while Bertkz corner fourth on the existence of the institutional structure the governance of these entities Industry and efficiency in various operational and executive aspects.
Dr. Alhashl importance of the regulatory and supervisory framework in terms of the organization of the Islamic finance industry and to strengthen their capacity and entities engaged in an active role in serving the national economy and that by focusing on the two wings of the supervisory and regulatory system for Islamic banking and financial institutions.
He must stand on two main axes first is focused on the role of the regulatory oversight of the regulatory authority in establishing rules to ensure the provision of an atmosphere that enhance the efficiency of the work of Islamic banking and financial institutions sector and units.
He pointed out the role of Shari'a in the development of the work and activities of the Islamic banking and financial institutions to achieve its mission and achieve its objectives indicating that the supervisory and regulatory authorities undertake the task of developing the rules and regulations that contribute to strengthening the foundations of sustainability of Dungeons and cohesive and interactive banking system with variables, financial and economic Almtsadjadat.
And that comes embodiment of the full awareness of the pivotal role of the banking and financial sector to achieve the goals of the general economic policies and objectives, including monetary and supervisory policies in particular.
He said the rules and controls centered in two forms two grounds precautionary and preventive their goal of strengthening the banking as a whole and units device capabilities singly to avoid the repercussions of any financial turmoil or economic occur as this advance prediction for vulnerabilities and exposure comes through monitoring and close monitoring in the light of the early warning systems.
He said that those controls therapeutic or reform comes to correct some of the imbalances that mar some of the operational transactions in order to ensure smoother performance that achieves the targets set for pointing out that the combine efforts between precautionary and curative control to complement each other in a closely in order to achieve financial stability.
With regards to the role of the Sharia Supervisory Alhashl said that this axis of great interest as the legitimacy of the content of the work of oversight bodies and the general framework centered on the verification of the commitment of the Islamic banking units of rules and controls all legitimacy in the banking and investment practices.
He said the practical application of those transactions showed extensive and multifaceted role entrusted with the oversight bodies legitimacy, especially with the increasing degree of diversity and innovation in tools and products, which increased with the burden of jurisprudence even keep pace with developments in the banking and financial work in the interests of the country and its people.
He said that Islamic banking activity data require attention to building human resources qualified and trained to exercise control acts of legitimacy with high efficiency, noting that this pivotal role you must contribute to its academic and educational institutions.
He added that the contribution of academic institutions must be through the provision of educational programs and rehabilitative methodologies of modern science in the financial sector and the economy as well as the importance of legal studies and jurisprudence transactions linked thus contributing to the construction and development of qualified human element, which represents the backbone of Islamic banking and finance industry.
He stressed the importance of the concept of Alhashl and activate the various elements of governance legitimacy control of the most prominent of which is the principle of the independence of the work of legitimate oversight bodies and pave the way for the issuance of legal provisions without any effects on its members both from within the organization or outside.
He said that Kuwait ensure the independence of the legal oversight bodies under the law where the legislature has ensured that these bodies be independent, especially with the magnitude of the burden placed on those who work in this responsibility.
He noted that Islamic banking and finance Mahakgueth of growth and expansion has become a reality understood by everyone, which is linked to the dedicated efforts of the oversight bodies legitimacy as the expansion of these transactions carries with it the growth and development of the foundations of a well-established involving challenged reflected to make this industry harness many of the developments accelerating global interest which is Maittalb vigilance in dealing with the variables of this reality that requires the intensification of efforts.
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