PMA Governor Participates in 2014 Meeting of the Central Banks and Monetary Authorities of the Organization of Islamic Cooperation Member States

During the period from 5-6 November 2014, the Governor of the PMA, Dr. Jihad Al Wazir, participated in the 2014 Meeting of the Central Banks and Monetary Authorities of the Organization of Islamic Cooperation (OIC) Member States. The meeting was organized in Surabaya by the Ankara-based Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRTIC), in its capacity as the OIC Secretariat of the annual meetings, in collaboration with Bank Indonesia, the central bank of the Republic of Indonesia. The meeting was held under the theme “Dealing with Financial Stability Risk: Macroprudential Policy and Financial Deepening in OIC countries”.

In his intervention, Dr. Al Wazir shared the PMA expertise in maintaining financial stability using macroprudential instruments in crisis management, particularly in confronting the Israeli occupation and more recently during its aggression against the Gaza Strip. The Governor of Bank Indonesia, Mr. Agus Martowardojo, who chaired the meeting, commended the role of the PMA and the measures it took in relation to macroprudential standards. He also praised the use by the PMA of the new follow-up system for monitoring financial stability in the mortgage sector. The system links borrowing opportunities and abilities to a credit scoring system based on the lax standard of the Dynamic Loan-To-Value ratio. Among central banks in the Middle East, such policy is unique to the PMA. Having developed the credit scoring system, the PMA was able to judiciously implement a supervisory system of risk management for the mortgage loan portfolio in a manner conforming to relevant international best standards and practices.

The annual meeting aimed at enhancing and reinforcing cooperation between these prominent institutions on matters critical to member states, such as mitigating the impact of global and regional financial and economic crises on the economies of the members.

In conclusion of the meeting, the governors adopted the 2014 annual meeting final communique, which included outlines of the resolutions and commitments for cooperation between central banks of member states regarding the subject of the meeting.  

In the course of the meeting, Dr. Al Wazir met on the side with the Vice President of the Republic of Indonesia, in the presence of the Palestinian Ambassador to Indonesia, Mr. Fareez Mahdawi.