| [Zawya]When Dr. Sri Mulyani Indrawati, managing director of the World Bank claimed that "Islamic banking was a priority" for the bank at the 8th Annual Summit of the Islamic Financial Services Board in Luxembourg last week, it showed that the industry is starting to gain credibility even at the top table of global banking. However it is a big ask for the industry to take the leap from what is fringe to mainstream. Fundamentally, many Islamic institutions are prudently run but becoming a global force with greater integration into the colossus of global finance, will mean that the standards of professionalism and risk management in the Islamic banking sector will need to raise to yet another level. She highlighted the shaky legal precepts that govern Islamic finance, as well as the skills gap and higher costs associated with Shari'ah compliant finance, but made the commitment that the World Bank would stand shoulder-to-shoulder with the nascent industry offering tangible support in the areas of capacity building and knowledge management; influencing policy and market development; diagnostic work and analysis in the industry; and providing technical assistance especially in developing a regulatory framework. At last the industry is starting to be taken seriously, now is the time for the industry to take itself seriously too. |
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