Dear Brothers,  2  BIS Review 14/2007  You all know the efforts made by Basel Committee to issue various standards governing conventional banking in the area of capital adequacy, corporate governance, and the principles of compliance, and others. These and other standards have helped create an appropriate environment for banking business which supports competition. On the other hand, a number of central banks in a number of Islamic countries, including SAMA, have established the Islamic Financial Services Board (IFSB) to promote establishment and development of Shari’a compliant financial services industry, characterized by prudence and transparency, through the adoption of existing or new international standards compatible with Islamic banking principles and methods. Since its establishment in November 2002, the Board has made great efforts in issuing international standards governing Islamic banking business through a number of committees and work teams in the membership of which SAMA participates effectively. Such standards will help setting up a strong structure to create robust banking entities able to compete in the international markets. The Board also makes great efforts in organizing conferences and workshops to promote awareness of the nature of Islamic banking. I can not, on this occasion, but thank the Board's members. Dear Audience Saudi Arabian Monetary Agency exerts persevering efforts to promote awareness and emphasize the importance of applying international standards that help manage risks, enhance competition and create strong entities. Therefore, this symposium is the first of its kind on Islamic Financial Services Board's standards which complement the guidelines of Basel II.

Hamad Al-Sayari: Islamic banking prudential standards Speech by His Excellency Hamad Al-Sayari, Governor of the Saudi Arabian Monetary Agency, to the “Symposium on Islamic Banking Prudential Standards”, Institute of Banking, Riyadh, 15 January 2007. *  *  *  Ladies and Gentlemen, It gives me a great pleasure to address this honorable and distinguished attendance at this important symposium on “Islamic Banking Prudential Standards” organized by the Institute of Banking (IOB) in cooperation with the Islamic Financial Services Board (IFSB). The issue of Shari’a (Islamic Law) compliant banking is increasingly drawing attention of those concerned with financial stability, including international financial institutions such as the IMF, World Bank (WB), development banks, Basel Committee on Banking Supervision as well as supervisory authorities in the countries where Islamic banks operate. This is the result of rapid growth in the volume and scope of Islamic services offered in many countries. Those entities have shown a great interest in the growth and expansion of finance business compliant with the principle of avoiding interest and its impact and implications with respect to world markets and the global economic system. Currently, Shari’a compliant banking transactions have spread in most countries of the world through banks that totally comply with Shari’a or through Shari’a compliant windows offering all services, investment and commercial activities, leasing, investment funds and joint liability products. The Kingdom has been a forerunner country in supporting and encouraging Saudi banks to offer such products required by the Saudi market.