Jouahri: Strengthening International Cooperation Key to Advancing Islamic Finance
Speaking at the 23rd Forum on Islamic Financial Stability, which was organized by BAM and the Islamic Financial Services Board (IFSB) under the theme 'Overcoming Challenges: Addressing Structural Vulnerabilities and Building Resilience Against Future Shocks,' Abdellatif Jouahri highlighted the critical challenges facing the sector.
He identified four main challenges: Sharia compliance, liquidity management, sustainable financing, and risks related to digitalization. Addressing these issues, Jouahri emphasized, requires a stronger international partnership that respects global standards while acknowledging each country's unique context.
Jouahri affirmed the increasing integration of Islamic finance within the global financial system, noting that the principle-based regulatory approach allows countries to adapt standards according to their specific needs.
Morocco, for instance, has established a centralized fatwa system supported by the Supreme Council of Ulemas to ensure Sharia compliance of financial products, thereby enhancing public trust.
Read also: Islamic Financing in Morocco Hits $2.4 Billion in 2023, Driven by Real Estate
In Morocco, participatory finance now represents 2% of banking assets. Since 2015, Bank Al-Maghrib has worked closely with stakeholders to build a regulatory, institutional, and fiscal framework conducive to the sector's growth. This collective effort has resulted in a clear governance architecture guided by a coherent roadmap and the active involvement of the Supreme Council of Ulemas.
Jouahri also praised the pivotal role of the IFSB in standard-setting, fostering cooperation, and facilitating dialogue among regulatory authorities. He noted the board's impressive achievements since its inception in 2003 and highlighted ongoing reforms aimed at aligning its mission with emerging challenges, strengthening member institutions, and providing sustained technical support.
Jouahri concluded by describing the forum as a valuable platform to anticipate future challenges, share practical experiences, and explore ways to enhance the resilience of the Islamic finance sector.
The IFSB's annual assemblies and related events, held from July 1 to 3, brought together central banks, regulatory and supervisory authorities, and sector participants from IFSB member countries.
Supported by Bank Al-Maghrib, these meetings included the 46th IFSB Council meeting, the 23rd General Assembly, and the 23rd Financial Stability Forum.
Over 130 IFSB members participated, including senior representatives from central banks, regulatory and supervisory authorities, and multilateral institutions across the financial sector. Tags: Abdelatif JouahriBAMIslamic finance in morocco
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