## IF.1 Islamic finance in the System of National Accounts and External Sector Statistics ## Source details **Canonical URL:** [IF.1 Islamic finance in the System of National Accounts and External Sector Statistics](https://www.imf.org/-/media/files/data/statistics/bpm6/iftt/if1-q-islamic-finance-eng.pdf) ## Other formats - [Markdown version](/-/media/files/data/statistics/bpm6/iftt/if1-q-islamic-finance-eng.pdf.md) - [Structured JSON version](/-/media/files/data/statistics/bpm6/iftt/if1-q-islamic-finance-eng.pdf.json) --- ### Terminology for the investment income for Islamic deposits, loans and debt securities - Issue 1.1: Recommendation to use the term "interest and similar returns" to broaden the scope of interest to encompass interest-like returns on Islamic deposits, loans and debt securities (Question 2A: Yes / No / Undecided). - Issue 1.2: Recommendation to present the data on the investment income on Islamic deposits, loans and debt securities in the updated SNA and BPM (Question 3A: Yes / No / Undecided). - Issue 1.3: Recommendation to nuance paragraphs 7.113 and 7.114 of the 2008 SNA and paragraph 11.48 of the BPM6 to reflect the interest and similar returns on Islamic deposits, loans and debt securities (Question 4A: Yes / No / Undecided). - Each issue includes a free-text elaboration box (Questions 2B, 3B, 4B). ### Sectorization and output of Islamic finance entities - Issue 2.1: Overall recommended sectorization of Islamic financial corporations and the methods to calculate their output in annex D (Question 5A: Yes / No / Undecided). - Table 1 recommendations (Question 6): responses requested for - Classification as institutional units (issue 2.2) — Yes / No / Undecided. - Sectorization into subsectors of financial corporations sector (issue 2.3) — Yes / No / Undecided. - Methods to calculate output (issue 2.4) — Yes / No / Undecided. - Each recommendation includes an elaboration textbox. ### Economic ownership of non-financial assets related to sales, lease, and equity financing - Issue 3.1 (Question 7A): Do Islamic financial corporations: - a) Can set up separate institutional units which will then be the economic owners of the underlying non-financial assets for Islamic financial arrangement, and/or - b) Can facilitate transferring the economic ownership of these non-financial assets from the sellers to clients? - Response options: Yes / No / Undecided (Question 7A) with elaboration box (7B). - Issue 3.2 (Question 8A): Are clients who default on payment for the underlying non-financial assets in Murabaha and Bai Muajjal still the economic owners of these assets? Response options: Yes / No / Undecided (Question 8A) with elaboration box (8B). ### Classification of Islamic financial instruments and corresponding investment income - Issue 4.1 (Question 9A): Suggested classification of Islamic financial instruments contained in annex B using the slotting-in approach from an economic statistics perspective; capability for future application as Islamic finance evolves. Response options: Yes / No / Undecided (9A) with elaboration box (9B). - Issue 4.2 (Question 10A): Recommendation to construct a “decision tree” for inclusion in a compilation guide to facilitate future classification decisions. Response options: Yes / No / Undecided (10A) with elaboration box (10B). ### Reference rates and terminology to calculate Islamic FISIM - Issue 5.1 (Question 11A): Recommendation to use the FISIM formula in the 2008 SNA to calculate the financial intermediation services provided by Islamic deposit-taking corporations (option 1). Response options: Yes / No / Undecided (11A) with elaboration box (11B). - Issue 5.2 (Question 12A): Which reference rate(s) should be used to calculate conventional and Islamic deposits and loans denominated in the same currency? - Option 1: Only one unique reference rate is recognized for conventional and Islamic FISIM (consistent with guidance in the 2008 SNA and BPM6). - Option 2: One unique reference rate is recognized, with explicit recognition of different risk profiles for Islamic deposit-taking corporations. - Option 3: Different reference rates are recognized for conventional and Islamic FISIM on the basis that the prohibition on interest and restrictions to engage only in Shari'ah-compliant activities and transactions will tend to internalize Islamic Banking activity within a specific subsector of the general economy. - Response options: Option 1 / Option 2 / Option 3 / Undecided (12A) with elaboration box (12B). - Issue 5.3 (Question 13A): Recommendation to include Qard, Wadiah, Amanah, and Qard-hasan deposits and Qard-hasan financing in the bundle of deposits/loans to calculate Islamic FISIM and to use total deposits and total loans to calculate Islamic FISIM. Response options: Yes / No / Undecided (13A) with elaboration box (13B). - Issue 5.4 (Question 14A): Recommendation to use separate reference rates for each currency involved in cross-border Islamic deposits and loans. Response options: Yes / No / Undecided (14A) with elaboration box (14B). - Issue 5.6 (Question 15A): Recommendation that economies be invited to participate in empirical tests such as what reference rate to use to calculate domestic and cross-border FISIM on Islamic deposits and loans. Response options: Yes / No / Undecided (15A) with elaboration box (15B). ### Participation, experimental estimates, and additional comments - Question 16: Open textbox for any other comments on the guidance note. - Question 17A: Would your institution be interested in participating in an experimental estimate exercise? Potential topics: 1. What reference rate to use to calculate domestic and cross-border FISIM on Islamic deposits and loans. 2. Outputs of Islamic financial entities (including takaful and retakaful). - Response options: Yes / No (17A). - Conditional Question 17B (if 17A = Yes): What technical assistance, if any, would you need? (free-text). - Question 18: Consent to publish responses to global consultations — Response options: Yes / No. --- _Source: https://www.imf.org/-/media/files/data/statistics/bpm6/iftt/if1-q-islamic-finance-eng.pdf_