Efforts have been carried out in this regard both at the national level and internationally through institutions such as the Financial Stability Board and the International Association of Insurance Supervisors. However, this process is only in its early stages and more work is needed in a number of areas. For instance, climate change scenarios are not typically considered in financial sector stress testing.
This task is becoming all the more important, as the industry grows and internationalizes. Today’s panel on alternative regulatory structures is a pertinent one, given the need for effective supervision to underpin a healthy Islamic financial services industry, as well as the development in recent years of new regulatory organizations in the GCC.