Events

Third International Conference on Islamic Banking and Finance: Risk Management, Regulation and Supervision

09 January 2010

"Third International Conference on Islamic Banking
and Finance: Risk Management, Regulation and
Supervision"

23-24 February 2010, Jakarta Indonesia

CALL FOR PAPERS
During the last 30 years Islamic banking and finance has contributed significantly to the
development of financial sectors and deepening of financial markets in several countries, thus
contributing to economic development. As Islamic banking and finance is expanding worldwide,
its systemic importance for the stability of national, regional and global financial system is also
increasing fast. Since Islamic banking makes financial services relevant for a wide population
segment, the combination of the premise of Islamic finance with the implementation of
internationally accepted standards of best practices is expected to enhance wider access to
more efficient and stable financial services.
Center for Economics and Business (PEBS) Faculty of Economics University of Indonesia and the
Islamic Research and Training Institute [IRTI] - a member of the Islamic Development Bank (IDB)
Group – in collaboration with Bank of Indonesia are pleased to announce the Third International
Conference on Islamic Banking and Finance: Risk Management, Regulation and Supervision, to
be held in Jakarta Indonesia in February 2010. The previous series of the conference was coorganized/
hosted by Bank Negara Malaysia and the Islamic Financial Services Board in 2005.
Objectives of the conference include: Taking stock of the relevance of Islamic banking and
finance for inclusive financial sector development, banking and financial stability, studying the
unique risks of Islamic banking and finance and facilitating the development of risk management
culture in the Islamic financial institutions by prudential regulation and effective supervision.

Empirical as well as theoretical papers are invited in the following and related areas:
FINANCIAL STABILITY: Factors effecting financial stability, role of paradigm and support
institutions in ensuring financial stability, empirical works on the stability of Islamic banks vis-àvis
traditional banks during financial distress, Southeast Asian financial crisis and relative
performance of Islamic financial institutions, early warning systems such as the balance-sheet
approach and their suitability for emerging economies.

COMPARATIVE FINANCIAL SYSTEMS: Comparing the paradigms of universal banking, Islamic
banking and traditional banking and its implications for leveled playing field, cross-sector
consolidation of activities and cross-sector risk transmission, implications for banking
supervision.

UNIQUE RISKS OF ISLAMIC MODES OF FINANCE: Systemic risks, credit risks, market risks,
fiduciary risks, liquidity risks etc., particularly stemming from the unique asset and liability
structures of Islamic banks due to Shari'ah compliance, perception of banks and regulators
regarding these risks, financial risks underlying Sukuk structures.

ISLAMIC FINANCIAL ARCHITECTURE: An in-depth analysis of the challenges facing the
infrastructure institutions of the Islamic finance industry: (i) Shari'ah Supervisory Boards, (ii)
Accounting and Auditing Organization for Islamic Financial Institutions, (iii) Islamic Financial
Services Board, (iv) International Islamic Rating Agency, (v) International Islamic Financial
Market, (vi) Arbitration and Reconciliation Center for Islamic Financial Institutions), interaction
with the international financial architecture.

IFSB STANDARDS & BASEL II AND ITS IMPLICATIONS FOR ISLAMIC BANKS: Capital
requirements, credit risk weighting of assets (standardized and internal rating based
approaches), treatment of leases, micro finance, project finance, operational risks, market risks,
securitization and Islamic banking and market disciplines, and implications of supervisory review
process.

RISK MANAGEMENT INSTRUMENTS AND SYSTEMS: Case studies from Islamic banks, theoretical
studies of risk management instruments and systems (risk reporting, internal rating systems,
market and credit VaR, RAROC, collateral, loan loss provisioning, swaps and futures, credit
derivatives, contractual risk mitigation etc).

CORPORATE & SHARIAH GOVERNANCE: corporate governance issues specially confronted by
the different segments of the Islamic financial services industry.

UNRESOLVED FIQHI ISSUES IN ISLAMIC BANKING AND FINANCE: Fiqh appraisal of risk
management instruments and developing alternatives or adapting instruments, treatment of
defaults, operating vis-à-vis financial leases, asset securitization, importance of managing bank
capital and its implications for business risk etc.

CASE STUDIES IN REGULATION AND SUPERVISION OF ISLAMIC BANKS: Islamic banking
regulation and supervision, Shariah compliance a matter of regulation or market discipline,
Application of supervisory risk assessment tools (CAMELS etc), risk weighting of assets of Islamic
banks, treatment of investment and current accounts, sources of capital, disclosure and
transparency requirements, applications of international standards, financial reporting and
disclosures, compliance with Core Principles etc, comparatives systems of effective Islamic
banking supervision.

FINANCIAL INCLUSION & FINANCIAL SECTOR DEVELOPMENT POLICIES: supportive environment
with special emphasis on financial inclusion - deposit insurance, legal & tax framework, market
microstructures, monetary and fiscal policy response, LLR facilities etc for strengthening the
Islamic financial institutions.

CHALLENGES OF SOVERIGN WEALTH FUNDS: The rise of sovereign wealth funds, the changing
nature of globalization and its implications for Islamic financial services industry.
Papers must be original contributions and written in English. Electronic submission should be
sent in MS Word format (font 12, line spacing 1) to the academic contacts provided below.
Qualified individuals will referee the submitted papers through a process of double blind peer
review. Accepted papers will be the copyright of the conference organizers and published in the
Conference Proceedings. Selected completed papers will be considered for publication in the
Journal of IRTI and the Indonesian Islamic Economics Journal (JESI).

IMPORTANT DATES:
Submission of Abstract : January 10th, 2010
Submission of Papers : January 20th, 2010
Decision on Papers : January 30th, 2010

ACADEMIC CONTACTS:
Dadang Muljawan
Directory of Islamic Banking, Bank of Indonesia
Email : dmuljawan@bi.go.id

Mustafa Edwin Nasution
Center for Islamic Economics and Business (PEBS), Faculty of Economics University of Indonesia
Email: conference_ibf@yahoo.com

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