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IFSBGlobal standard-setter that sets prudential and supervisory standards for Islamic finance regulators. Definition from the HalalWallet Islamic Finance Glossary.Published by HalalWallet (halalwallet.us).

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IFSB

Pronunciation: I-F-S-B

Governance

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.

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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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HalalWallet. “IFSB: Definition & Meaning in Islamic Finance.” HalalWallet, https://www.halalwallet.us/glossary/ifsb. Accessed 2026-05-22.

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Reviewed by: HalalWallet Editorial Team

Last reviewed: 2026-05-01

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