Public Lecture: “Understanding Key Features of Basel III and Its Implications on Islamic Banking Industry”
Date : 29th January 2016 (Friday)
Time : 03:00pm – 05:15pm
Venue : IAIS Malaysia
The global financial crisis in 2007 - 2008 was remarked by economists as the worst financial turmoil since the Great Depression in 1930’s. The collapse of Lehman Brothers prompted the Basel Committee on Banking Supervision, (BCBS) to introduce Basel III or Third Basel Accord in mid-December 2010, aimed at further strengthening capital adequacy of conventional banks by increasing bank’s liquidity and decreasing bank leverage. Its introduction would certainly effect the banks’ business strategy since new regime of capital requirements and ratios, funds and risk computation, categorization of Tier 1 and Tier 2 capital, solvency ratios, asset value correlations, credit valuation adjustment, stress testing, capital conservation buffer, leverage and liquidity ratios are delineated. Basel III underwent a revision in 2013.
The implementation of Basel III and its new liquidity coverage ratio (LCR) is seen to provide viable mechanisms for liquidity management instruments which could help address some of the industry’s long-standing weaknesses, especially on the issue of lack of high quality liquid assets (HQLA). Since Islamic finance is being part of the global financial system, the introduction of Basel III as international standards would undoubtedly impact it as well. It is a well noted fact that Islamic finance carries distinctive features vis-a-vis its conventional counterpart. Due to that, it is pertinent to all Islamic finance players to understand the key features of Basel III framework to ensure its compliance with the international standards and more importantly the Shariah principles.
• To understand the Basel III framework and its salient features.
• To comprehend the implications of Basel III framework on Islamic banking and finance industry.
• To discuss the issues and challenges faced by the Islamic banking and finance industry with regard to the implementation of Basel III framework.
Mr. Abozer has been seconded to the Islamic Financial Services Board (IFSB) since August 2010. He is Co-Project Manager for IFSB Revised Capital Adequacy Standard based on Basel III (IFSB-15) and the Core Principles for Islamic Finance Regulation (IFSB-17). Abozer is also in charge of facilitating the Implementation of the IFSB standards initiative (FIS). Prior to joining IFSB, he was working with the Banking Supervision Department, Central Bank of Sudan. His the then portfolio was the Risk Management in the banking system, namely credit risk and problematic banks. Prior to that, he worked as an Auditor at the National Auditing Chamber.
At IFSB, Mr Abozer is in charge of the Editing Committee (EC) and Shari’ah Advisory Committee (SAC) within the IFSB as the liaison between the Sharī`ah Board and the IFSB at overseeing the Shari’ah issues in the IFSB standards. He also provides technical assistance and has conducted training and workshops for more than 15 IFSB’s member Central Banks and Supervisory authorities to facilitate the implementation of the IFSB Standards.
He was invited as an expert by the IMF via IFSB following his mission in Tunisia in 2012. He was responsible to facilitate many banking regulators of various jurisdictions as Technical Assistant in their process of implementing Islamic Finance. One of his major contributions while serving this task was his experience in assisting the Libyan regulator transforming the Libyan banking sector into full-fledge Islamic banking system. Apart from that, he was also responsible to oversee the banking supervision matters for the regulatory authorities in Middle East and North Africa (MENA) regions.
Mr Abozer holds a Master’s Degree in Pure Economics (Performance of the Stock Exchange Market) from University of Khartoum and BSc Honour degree in Pure Economics from University of Khartoum, Sudan which were obtained in 2005 and 2002 respectively. Currently, he is a candidate for Doctor of Philosophy (PhD) in Islamic Finance at the International Islamic University Malaysia (IIUM).
02:30pm Arrival of Guests & Registration
03:00pm Opening Remarks by the Moderator, Assoc. Prof. Dr. Mohamed Azam Mohamed Adil, Deputy CEO, IAIS Malaysia
03:05pm Welcoming Remarks by Professor Dr. Mohammad Hashim Kamali, Founding CEO, IAIS Malaysia
03:15pm Presentation by Mr Abozer Magzoub Mohammed
04:15pm Q&A Session
05:15pm Concluding Remarks by the Moderator; Adjournment and Refreshment.
Download PowerPoint Presentations (in PDF format)