Islamic banks urged to strengthen corporate governance

Islamic finance's top organization and World Bank's joint report to serve as benchmark to future works in weak areas

By Can Erozden

ANKARA (AA) – The General Council for Islamic Banks and Financial Institutions (CIBAFI) and the World Bank launched their first joint publication Tuesday.

Corporate Governance Practices in Islamic Banks 2017 was launched during a meeting of the Members Consultative Group in Manama, Bahrain.

"The study underlying this first joint report breaks new ground in the field of corporate governance for Islamic banks," the CIBAFI said in a statement.

“Its methodology is academically rigorous. Its findings and conclusions are easily accessible and they have clear implications for the day-to-day governance of Islamic banks.”

Abdelilah Belatik, secretary general of CIBAFI, said: "CIBAFI and the World Bank agreed that there was need for a robust analysis of current corporate governance practices within the Islamic banking industry.”

He added the report will serve as the basis for further work in the field.

Abayomi Alawode, head of Islamic finance, finance and markets at the World Bank, said he hoped the report would not just be read within the Islamic financial industry.

“The report will serve as a benchmark for future work, enabling the industry to track its progress, particularly in the areas that have been identified as those most in need of improvement,” he said.

CIBAFI and the World Bank have been working together to develop the Islamic finance industry under a memorandum of understanding signed in July 2015.


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