IFSB
Pronunciation: I-F-S-B
Global standard-setter that sets prudential and supervisory standards for Islamic finance regulators.
Definition
Islamic Financial Services Board. An international standard-setting organization based in Kuala Lumpur, Malaysia, established in 2002. While AAOIFI sets Shariah and accounting standards for institutions, IFSB sets prudential and supervisory standards for the regulators that oversee them — covering capital adequacy, risk management, governance, and stress testing for Islamic banks, takaful operators, and Islamic capital markets.
Its members include central banks and financial regulators from more than 80 jurisdictions. AAOIFI and IFSB are complementary: AAOIFI tells institutions how to operate; IFSB tells regulators how to supervise them.
Related Terms
AAOIFI
The primary international standard-setting body for Islamic finance.
Shariah Boardهيئة شرعية
A committee of qualified Islamic scholars that certifies the Shariah compliance of financial products.
Shariahشريعة
Islamic law derived from the Quran and Sunnah — the foundation of all Islamic financial principles.
Further Reading
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IFSB — Global standard-setter that sets prudential and supervisory standards for Islamic finance regulators. Islamic Financial Services Board. An international standard-setting organization based in Kuala Lumpur, Malaysia, established in 2002.
- Global standard-setter that sets prudential and supervisory standards for Islamic finance regulators.
- Category: Governance
- Related: AAOIFI, Shariah Board, Shariah
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Last reviewed: 2026-07-01
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