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How the IDB Promotes Islamic Monetary Policies to Achieve

Sustainable Development

ISLAMIC DEVELOPMENT BANK

The IDB: established in 1975 foster development, now group of five entities:

Islamic Development Bank (IDB), Islamic Research and Training Institute (IRTI), Islamic Corporation for the Insurance of Investment and

Export Credit (ICIEC), Islamic Corporation for the Development of the Private

Sector (ICD), and the International Islamic Trade Finance Corporation

(ITFC).

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Presently, the IDB has 56 member countries:

Spread across Africa, Middle East, Asia and Europe

A veritable institution for South-South cooperation.

Promoting Islamic monetary policies to achieve development is one the key mandates of IDB

Islamic Finance is the bedrock of Islamic monetary policies

It implies that the IDB is required to play its role in expanding and deepening the practices of Islamic finance

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The developmental essence of Islamic finance is that:

It is rooted in productive relationship between financial assets and real sector activities

Stimulates economic growth, which is an essential precondition for achieving sustainable development.

A self-perpetuating process of social and economic progress

Breaking new grounds for Shariah-compatible modes of financing:

The IDB: • Undertook a detailed analytical work, in-house

discussions, and wider consultations with key stakeholders

• developed strategies, adopted various policies, partnered with several institutions

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Some major steps include:

Establishment of IRTI in 1981Special prize in Islamic ' Economics and Islamic

Banking in 1988. Providing technical assistance and capacity

development

• Instrumental to the establishment of the ADFIMI in 1986 with the main objective of enhancing the capacity and effectiveness of NDFIs

Coordination of and supporting of activities of the ADFIMI.

Pivotal role nurturing the development ' of standard making bodies : Financial Services Board (IFSB) Accounting and Auditing Organization for Islamic Financial Institutions

(AAOIFI). General Council for Islamic Banks and Financial institutions (CIBAFI),

International Islamic Financial Market (IIFM), Islamic International Rating Agency (IIRA) and International Islamic Center for Reconciliation and Arbitration (IICRA).

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Equity participation to enhance success of Islamic Banks:Presently worth US$ 219 million (ID149 million) in 27

Islamic financial institutions in 19 countries.

In collaboration with strategic partners, initiated the establishment of Mega Islamic Investment Bank to:Finance high-value transactions, develop and market high quality liquid and tradable

Islamic financial papers, and enhancing liquidity management for Islamic financial

institutions.

Emerging Challenges: Liquidity managementCurrency composition of liquid assetsResponding to growing expectation due

financial crisis

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THANK YOU