Damascus, (SANA) – The 4th conference of Islamic banks and financial institutions' activities kicked off today under the title "Islamic Banking, investment opportunities and challenges of competition" with participation of 800 central bank governors, directors of boards and chief executives of Islamic commercial and investment banks from about 20 Arab and foreign countries.

The Governor of Central Bank of Syria, Adib Mayaleh pointed out to the important value of Islamic banking stressing that" we, as a supervising authority, aim at achieving financial balance and stability , improving a clean banking sector that works in accordance with the international standards and practices."

He drew attention to the fact that there are many decisions in support of Islamic banks work such as obliging banks to stick to accounting standards and issuing the system of accepting the legitimate authorities for Islamic banks in Syria and an independent guide allocated for Islamic banks only.

He also pointed out to the importance of such banks for Syria which is considered as a step to develop banking work and economic growth due to their important role in financing essential projects in which they entered as an essential player and gained customers' confidence achieving deposits of 35 billion pounds equivalent to 11% of banking sector total assets and this encourages us to develop Islamic finance industry and to create an appropriate atmosphere for it.

For his part, Secretary – General of Accountancy commission of the Islamic Financial Institutions, Nidal al-Sha'ar reviewed aspects of financial crisis and its impact on the work of Islamic banking, pointing out that excess on individual, institutional and governmental levels lies behind the crisis of the excess in currency issuance, loans, insurance, basic modifications in interest prices, depreciation and most important the excess in basic rules of banking work.On the other hand, Managing Director of al-Salam for International conferences which organizes the conference, Maher Abdul Hak said that Islamic banking proved its competence to satisfy costumers' needs and interests, to contribute to society and develop national economy.

The two – day conference discusses challenges and competition that face Islamic banking industry, global financial crisis and ways of strengthening Islamic banks in addition to the principles of governmental bonds, documents and liquidity management.

It also discusses the reality of financial markets, organized commercial financing , financing companies, individuals as well as aspects of the Syrian Islamic financial market and criteria governing electronic financial transactions in addition to financial policies and the role of central banks in achieving internal and external balance and financial development.

The conference provides a precious opportunity to exchange views with experts and decision-makers in the field of Islamic banking industry and Islamic finance.

Later, the conference resumed its activities with two evening sessions discussing Islamic financial industries, challenges, competition and the biggest obstacles hindering the development of these industries.

In the first session, Director General of Jordan Islamic Bank Moussa Shehada underlined the active role of Islamic banks in economic life, particularly their distinguished developmental role in directing savings investments into developmental projects.

He pointed out that the biggest challenges facing Islamic banks are the surrounding environment and the disproportionate competitive situation, in addition to customs, traditions and common misconceptions, as most people believe that Islamic banks are charities.

Shehada proposed a number of suggestions focusing on training the staff working in Islamic banks, dealing with the basic variables of banking, and committing to Islamic banking to avoid the global financial crisis and limit its negative effects.

For his part, CEO of the Islamic International Arab Bank Dr. Taisir a-Semadi pointed out that another challenge is the variety of religious interpretations regarding the services and products provided by banks.

The second session focused on the standards of accounting and auditing and the moral and religious guidelines.

Member of the board of trustees of the Institution of Accounting and Auditing of Islamic Financial Establishment Dr. Saeed Ramadan al-Bouti underlining the need for an obligating referential authority in Islamic banks, stressing the importance of preparing a suitable atmosphere to handle developments in banking.

Participants in the conference will discuss on Tuesday the regulations for electronic banking, cooperative insurance, product standards, and the global financial crisis.

The conference will be concluded by an open debate session, with the participation of Governor of the Central Bank of Syria Dr. Adib Mayyaleh and Governor of the Central Bank of Yemen Ahmad Abdel-Rahman al-Samawi.

Rasha Raslan / Idelbi / H. Sabbagh