REPUBLIKA.CO.ID, JAKARTA - Bank Indonesia (BI) organized a series of meetings of central banks and monetary authorities of the Organization of Islamic Cooperation (OIC) member states here on Wednesday and Thursday to discuss macro-prudential policies.
"We were exchanging views on macro-prudential policies as part of a combination of policies to support financial system stability," Agus Martowardojo, Indonesia's central bank governor, stated at a press conference after the meeting.
He remarked that the meeting, attended by eight central bank governors and 20 representative officials, had agreed to seek assistance from international institutions in the implementation of macro-prudential policies and to put in the necessary efforts to deepen financial markets.
He noted that the role played by the Islamic Financial Service Board (IFSB) and the Accounting Auditing Organization for Islamic Financial Institutions (AAOIFI) will determine the realization of the goals and develop competent international standards, including in providing data and information.
"We also discussed capacity building and the role of the IDB (Islamic Development Bank) in the efforts," he affirmed.
Agus said the meeting also discussed efforts to deepen financial markets in a bid to increase financial inclusion and maintain financial market stability in the OIC countries.
One of the efforts to be undertaken is to manage alms and waqaf in accordance with the management standards in order to mobilize economic activities and improve public welfare, he stated.
"We will manage alms and waqaf according to the best international practice standards and Shariah principles to become a source of funding under a healthy financial system," he noted.
The meetings began with an expert group workshop titled "Dealing with financial stability risk: macroprudential policy and financial deepening in Islamic finance," BI stated in a press release on Thursday.
Later, BI Governor Agus Martowardojo led a meeting of OIC central bank governors to discuss the framing of an Islamic financial policy to support the development of sharia finance, including the social sector.
The routine meeting of the OIC central bank governors was crucial this time, as it discussed the possibilities of a macroprudential policy and financial deepening, which had become the center of attention of the world community.
At the meeting, the OIC central bank governors and experts discussed how best to apply an effective macroprudential policy to minimize financial risks and stabilize the financial sector.
The OIC central bank governors and monetary authorities agreed that central banks and monetary authorities must anticipate global financial pressure by making a proper policy and developing appropriate supporting facilities.
A macroprudential policy that runs parallel to a sound macroeconomic (monetary and fiscal) policy will ensure stability in financial system, prices, and growing economic activities in OIC member states.
Therefore, the OIC central bank governors and monetary authorities agreed to step up cooperation and capacity building to strengthen the macroprudential and financial deepening.
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