Damascus - Governor of Central Bank of Syria (CBS) Adib Mayala has urged more efforts to adopt a unified Islamic reference to avoid division and jurisprudential debate in Islamic banking.

Speaking at the opening of the 5th Islamic Banks and Financial Institutions Conference held in Damascus on Monday, Mayala called to find legal and taxational regulatory frameworks to facilitate operation of Islamic banks.

"The CBS is working to issue Islamic bonds to support the development of Islamic banking based on Sharia law," he added.

"We need to find tools to develop risk and liquidity management for Islamic banks and to facilitate participation of Islamic banks in financing infrastructure projects," Mayala said.

He called for activating legitimate control system in Islamic banking.

Head of the Board of Directors of the Union of Arab Banks Adnan Ahmed Yousef urged to step up efforts to establish a joint Arab and Islamic market to help the Arab countries overcome the global financial crisis.

Governor of Saudi Arabian Monetary Agency Mohammad al-Jasser said Islamic banking has proven success in attracting deposits and meeting the needs of clients.

"Total assets of Islamic financial institutions exceeded USD 822 billion and the value of Islamic bonds reached USD 100 billion last year," he said.

He added that Islamic banks form 15 percent of the assets of the largest 30 banks in the Middle East. In 2009, the total assets of Islamic investment funds are estimated at USD 27 billion distributed among 478 Islamic funds all over the world, he said.

The two-day conference tackles risk management, liquidity management, legitimate control system and the role of regulatory bodies in achieving growth in Islamic banking.

Challenges facing Islamic banks and Takaful insurance industry, banking supervision policy and electronic banking services will be discussed. Islamic banks and financial institutions from 12 Arab and foreign countries are participating in this conference.

Sessions of the first day of the 5th Conference on Islamic Banks and Finance Establishments in Syria focused on Islamic banking, the global financial crisis and opportunities of Islamic finance industry.

Secretary of the General Council of the Islamic banks and financial institutions in Bahrain Dr Izz al-Din Khoja pointed out to the close link between the financial transactions carried out by Islamic banks and the actual economy.

Head of the Arab Banks Union Adnan Yousuf said that Islamic banks and financial institutions adoption of the principle of partnership in profit and loss and the actual circulation of funds give them more confidence in the international financial system.

For his part, official of at the Saudi Islamic Development Bank Dr. Nabil Ghellab pointed out that Islamic financial institutions overcame the global financial crisis because of its investment technique leading to its spread across the globe, pointing out to the advantages of Islamic banking such as its commitment to the government systems and legislations& of the countries where it works.

Chief Executive Officer of the Syrian International Islamic Bank Abdul -Qader Dwiek pointed out to the Central Bank of Syria's keenness on maintaining an adequate level of currency in the banking sector to ensure the safety of its finances and its ability to meet its liabilities.

By H. Said /R. Raslan /Idelbi/ Fadi Allafi /Mazen Eyon

© SANA (Syria Arab News Agency) 2010