The Islamic Financial Services Board (IFSB) is an international standard-setting organisation that promotes and enhances the soundness and stability of the Islamic financial services industry.

The IFSB is based in Kuala Lumpur, Malaysia and was officially inaugurated on 3rd November 2002 and started operations on 10th March 2003. It serves as an international standard-setting body of regulatory and supervisory agencies that have vested interest in ensuring the soundness and stability of the Islamic financial services industry, which is defined broadly to include banking, capital market and insurance. In advancing this mission, the IFSB promotes the development of a prudent and transparent Islamic financial services industry through introducing new, or adapting existing international standards consistent with Sharî’ah principles, and recommend them for adoption.

To this end, the work of the IFSB complements that of the

• Basel Committee on Banking Supervision, global standard-setting body for the prudential regulation of banks. It aims to strengthen banking regulation and supervision worldwide, ultimately enhancing financial stability. The Committee operates through the Bank for International Settlements (BIS) in Basel Switzerland. The Basel Committee on Banking Supervision (BCBS) provides a forum for regular cooperation on banking supervisory matters.
• International Organisation of Securities Commissions (IOSCO), the international body that brings together the world’s securities regulators and is recognized as the global standard setter for financial markets regulation. They develop, implement and promote adherence to internationally recognized standards for financial markets regulation and work closely with other international organisations on the global regulatory reform agenda.
• International Association of Insurance Supervisors (IAIS), the global standard-setting body responsible for developing and assisting in the implementation of principles, standards and guidance as well as supporting material for the supervision of the insurance sector. The IAIS mission is to promote effective and globally consistent supervision of the insurance industry in order to develop and maintain fair, safe and stable insurance markets for the benefit and protection of policyholders; and to contribute to global financial stability.

As of December 2024, the 185 members of the IFSB comprise 84 regulatory and supervisory authorities, 10 international inter-governmental organisations, and 91 market players (financial institutions, professional firms, industry associations and stock exchanges) operating in 60 jurisdictions.

The IFSB issues global prudential standards and guiding principles for the financial services industry, which includes banking, capital markets, and insurance sectors. The IFSB also conducts research and coordinates initiatives on industry-related issues, as well as organises roundtables, seminars, and conferences for regulators and industry stakeholders.

These standards cover various aspects of Islamic finance, including capital adequacy, risk management, corporate governance, and transparency. They are developed through a rigorous due process that involves consultation with industry stakeholders and experts to ensure their relevance and applicability

The IFSB’s standards are widely adopted by regulatory and supervisory authorities, as well as financial institutions, to ensure that Islamic financial services operate in a sound and stable manner, in compliance with Shari’ah principles

The Key IFSB standards are published on their official website: https://www.ifsb.org/standards-page/

These include: