The Islamic Financial Services Board has released the fifth edition of its annual Islamic Financial Services Industry Stability Report 2017 highlighting important developments in the growth, stability and other aspects of the Islamic financial services industry.
The report finds that despite subdued economic growth conditions and impact of new geopolitical developments, the global IFSI has been able to sustain its total assets value at approximately $1.9tr in 2016. While the overall performance of Islamic finance in 2016 has been satisfactory, the industry needs to build long-term resilience amidst the prevailing era of weak growth and uncertainties. The report illustrates areas that could be further strengthened across the broad sectors of the IFSI (banking, capital markets and Takaful), many of which will require measured efforts by the national authorities to address the emerging risks
Commenting on the release of the IFSI Stability Report 2017, acting secretary-general of the IFSB, Zahid ur Rehman Khokhe said, “The issuance of the Islamic Financial Services Industry Stability Report 2017 comes during a time of growing external challenges for the financial system, including lower economic growth outlooks and global political uncertainties. While the Islamic financial services industry has, in many respects, withstood the challenging operating environment, it has however moved away from the double-digit growth trajectory witnessed in previous years. This slowdown underscores the importance, more than ever, of strengthening the resilience of the Islamic financial system and addressing internal weaknesses and vulnerabilities through appropriate policy responses.”