Monday, June 30, 2008

Indonesia's governance for Islamic banking

An Indonesian central banker brought a group of students and industry practitioners up to speed on the neighbouring republic's governance in Islamic bank.

Nasirwan Ilyas, a senior bank reseacher at Bank Indonesia's Directorate of Islamic Banking, was the guest speaker at International Centre for Education in Islamic Finance (INCEIF) discourse series today.

Two quick pointers for observers. First, Indonesia's central bank reports directly to the nation's Parliament, unlike Bank Negara Malaysia whose line of authority goes through the Ministry of Finance. Second, Indonesia's National Shariah Board, a unit of the Indonesia Ulema Council, is detached from the country's power bases. It is independent, unlike the national Shariah committees at BNM and Securities Commission (SC).

Pak Nasir's presentation was followed by a panel discussion by Securities Commission managing director Dato Dr Nik Ramlah Nik Mahmood, CIMB Islamic Bank Bhd CEO Badlishah Abd Ghani and Islamic Financial Services Board (IFSB) project manager Madzlan Mohamad Hussain. The session was moderated by Prof Dr Syed Abdul Hamid AlJunid, who heads INCEIF's Economics & Governance Department.

1 comment:

Hab said...

The speaker good brief on Indonesia's position on CG. However, as usual, the test of the pudding is in the eating. It would be interesting to see if the central bank can put the legislation to work.