The Islamic Financial Services Board (IFSB) convened its 23rd Islamic Financial Stability Forum in Rabat, Morocco, and presented findings from its Islamic Financial Services Industry Stability Report 2025, with discussions culminating in a call for targeted structural reforms to strengthen the resilience and long-term stability of the Islamic financial system. The Stability Report 2025 pointed to the industry’s increasing scale and reach but highlighted structural gaps, particularly in non-bank segments. Priorities identified at the Forum included developing deep and liquid local currency sukuk markets, broadening the investor base, and addressing legal, regulatory and market infrastructure gaps to support the growth of Islamic insurance and funds sectors. Participants also emphasised forward-looking supervisory approaches to identify vulnerabilities early, the need to build supervisory capacity in fast-growing jurisdictions, stronger national implementation of IFSB standards, and enhanced cross-border coordination.
Islamic Financial Services Board 2025-07-03
Islamic Financial Services Board stability forum calls for structural reforms including deeper local currency sukuk markets
The Islamic Financial Services Board (IFSB) held its 23rd Islamic Financial Stability Forum in Rabat, Morocco, presenting the Islamic Financial Services Industry Stability Report 2025. The report highlighted the industry's growth and structural gaps, particularly in non-bank segments, and called for reforms to enhance resilience. Priorities include developing local currency sukuk markets, expanding the investor base, and improving legal, regulatory, and market infrastructure for Islamic insurance and funds.