The Islamic Financial Services Board (IFSB) was inaugurated here by founding members Malaysia, Saudi Arabia, Indonesia, Iran, Kuwait, Pakistan, Sudan and the Islamic Development Bank.

The establishment of the IFSB � an association of central banks, monetary authorities and other institutions responsible for supervising and regulating Islamic banking � was "in response to the growing significance of the Islamic financial services industry," officials said.

It is the culmination of two years of work by the founding members, with support from the International Monetary Fund and the Accounting and Auditing Organisation for Islamic Financial Instituitions.