The Islamic Financial Services Board estimates Islamic finance industry assets to be worth US$1.6 trillion as at the end of 2012 (By IFN)

The Islamic Financial Services Board estimates Islamic finance industry assets to be worth US$1.6 trillion as at the end of 2012

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GLOBAL: The Islamic Financial Services Board (IFSB), the global standard setting body backed by central banks and regulators, has released the Islamic Financial Services Industry Stability Report 2013, which shows that Malaysian Islamic financial institutions have achieved their target of reaching 20% of the total banking system by assets at the end of last year. The report also added that “selected” Gulf states, Bangladesh and Malaysia are also exhibiting substantial growth in their Islamic financial systems. “Aside from Iran and Sudan, which support a fully Shariah compliant financial system, selected GCC states, Bangladesh and Malaysia are the main markets where Islamic finance has a systemic importance due to the increasing market share of institutions offering Islamic financial services operating within the respective jurisdictions,” the report said. The global financial crisis had also done little to impact Islamic banks, said the report, which described the performance of Islamic banks as “relatively resilient”. In a sample of 50 Islamic banks across 11 countries, the Islamic banking industry is said to have witnessed significant growth over recent years, with total assets of Islamic banks standing at US$11.4 billion as at the end of 2011, with a compounded annual growth rate of 16.6% between 2007 and 2011. The IFSB estimates the Islamic financial services industry's assets to stand at US$1.6 trillion as at the 31st December 2012, representing a year-on-year growth of 20.4%. The report also covered updates in trends and developments across various industry sectors, including the Islamic capital market and Takaful, issues in regulations and supervision; particularly in liquidity management as well as global initiatives by standard setting bodies and governmental organizations.