The Inter-departmental Working Group on Islamic Finance of the International Monetary Fund (IMF) held its first meeting with its External Advisory Group (EAG) on Saturday to discuss issues related to Islamic banking and the development of sukuk markets.
The discussions covered regulation and supervision, the scope for Islamic financial institutions to improve access to finance, including for small- and medium-sized enterprises, the implications of Basel III requirements for capital and liquidity on the industry, and the potential for enhancing Shariah and corporate governance, said the IMF in a statement released after the meeting.
"Participants also discussed development of sukuk market and its potential for financing infrastructure investment and for providing instruments to facilitate liquidity management and central banking operations," the statement said.
The EAG was established by the IMF to help identify policy challenges facing the Islamic finance industry and facilitate coordination with those international institutions involved in establishing standards for the industry, the statement noted.