The Islamic Financial Services Board (IFSB) will set up its headquarters here to promote the industry, the International Monetary Fund said today.

The IMF, which is facilitating the establishment of the IFSB, said the board would serve as an association of institutions that have responsibility for the regulation and supervision of the Islamic financial services industry.

The IFSB would set up and disseminate standards and core principles consistent with Sharia principles governing the industry and liaise with other standard-setters in the areas of monetary and financial stability.

It would also promote good practices in risk management in the industry through research, training and technical assistance, the statement added.

It said central bank governor Zeti Akhtar Aziz would head the steering committee to prepare for the establishment and inauguration of the IFSB.