Wimboh Santoso, the Chairman of the Board of Commissioners of OJK, at the 33rd meeting of the IFSB Board, conveyed that OJK supports efforts to increase adoption of IFSB standards One of these standards encompasses the Impact and Consistency Assessment (ICAP) based on the results of self assessment.
As a G20 country, Indonesia has become accustomed to the Regulatory Consistency Assessment Program (RCAP) process to assess the consistency of the application of Basel III and will share experiences in implementing the ICAP. The IFSB Council has decided to approve the adoption of three new standards, namely:
- IFSB-20 on Elements Key in the Supervisory Review Process of Takāful/Retakāful Undertakings. This standard provides guidance to supervisors about minimum standards for supervisory review of effective and efficient processes for Takaful/Re-Takaful,
- IFSB-21 on Core Principles for Islamic Finance Regulation. This standard sets out 38 high-level core principles and their associated assessment methodology, which describes a broad, general framework for the regulation of Islamic capital markets.
- IFSB-22 on Revised Standard on Disclosure to Promote Transparency and Market Discipline for Institutions Offering Islamic Financial Services (IIFS). This standard establishes a set of principles and key practices that Islamic banks must follow while making disclosures. The aim is to promote consistency and comparability of disclosures by introducing harmonized templates for disclosure of quantitative information in key areas, including capital adequacy, regulatory risk exposures, investment accounts, and Sharīʻah governance.
The IFSB Board also asks its members to conduct self assessment. From the results of the assessment, IFSB can form taskforce to provide assistance to countries that still have constraints or gaps in its application. Thus, the level of implementation of the standards produced by IFSB will be higher and consistent. The meeting organized by the Islamic Development Bank Group (IsDB) was led by HE Mohammad Y. Al Hashel, Governor of the Central Bank of Kuwait and Chair of the IFSB for 2018. The meeting was attended by 12 central bank governors and regulatory and supervisory authority commissioners, along with 10 senior representatives from the council and full members of IFSB, representing 19 countries. In addition to the Chairperson of the OJK Board of Commissioners, the Governor of Bank Indonesia also attended as a representative from Indonesia.
Related Link: Press Release
Keywords: Asia Pacific, Indonesia, Banking, Insurance, Securities, Islamic Banking, Islamic Finance, IFSB-20, IFSB-21, IFSB-22, IFSB, OJK
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