22 August 2007 — DFSA enters into new co-operative arrangements with banking regulators in Jordan and Turkey
Amman, August 22 2007: The Dubai Financial Services Authority (DFSA) today entered into a Memorandum of Understanding (MoU) with the Central Bank of Jordan.
The discussions are part of a growing relationship between the DFSA and senior regulatory authorities within the region. “Our discussions in Jordan and Turkey are focused on common objectives to improve regulatory standards across all areas of financial services and to increase opportunities for information sharing and co-operation” said DFSA Chief Executive, Mr. David Knott.
As part of these discussions, the DFSA is completing Memoranda of Understanding with the banking regulators in both countries.
Jordan Today an MoU signing took place in Amman between H.E. Dr. Umayya Salah Toukan, Governor of the Central Bank of Jordan, and Mr. Knott.
As the independent and autonomous supervisor of banks in the Hashemite Kingdom of Jordan, the Central Bank’s role is to ensure the soundness of their financial positions and the protection of depositors’ and shareholders’ rights. The DFSA is the independent regulator of all financial services, including banking, within the Dubai International Financial Centre (DIFC).
The MOU is designed to enhance information sharing and cooperation between the two authorities, particularly in their common roles as banking supervisors. The DFSA already has an MoU with Jordan’s insurance supervisor, the Insurance Commission of Jordan.
After meeting with the Central Bank, Mr. Knott met with H.E. Dr Bassel Al Hindawi, Director General of the Insurance Commission. Dr Al Hindawi is the Regional Coordinator for the MENA region of the International Association of Insurance Supervisors (IAIS), of which the DFSA is also a member. Regional and international issues of mutual concern were discussed.
While in Amman, Mr. Knott also called upon the Chairman of the Securities Commission of Jordan (JSC), H.E. Dr Bassem Al Saket, and discussed the possibility of a bilateral MoU covering securities and capital markets issues. Dr Al Saket and Mr. Knott also discussed the recently established Federation of Arab Securities Authorities, of which both the JSC and the DFSA are members and which His Excellency is Chair.
Turkey Later this week on 23 August, Mr. Knott will sign a similar MoU in Istanbul with Mr. Tevfik Bilgin, Chairman of the Banking Regulation and Supervision Agency of Turkey (BRSA). The BRSA has responsibility for regulating principles and procedures for ensuring confidence and stability in financial markets, the efficient functioning of the credit system and the protection of the rights and interests of depositors.
Turkey is, like Jordan, an important and well-established jurisdiction for Islamic finance and the BRSA, like the Central Bank of Jordan, plays a key role in maintaining a sound regulatory environment for the development of Islamic financial products.
The DFSA already has a memorandum of understanding with the Capital Markets Board (CMB) of Turkey. This was one of the DFSA’s first international MoUs with a securities regulator. The CMB has played a leading role in the Emerging Markets Committee of the International Organisation of Securities Commissions (IOSCO), of which the DFSA is also a member. The DFSA will host the next annual meeting of the Emerging Markets Committee in Dubai in December this year.