Featured Product

    IFSB Revises Guidance on Prudential Islamic Financial Indicators

    December 27, 2019

    IFSB issued the revised guidance on compilation and dissemination of prudential and structural Islamic financial indicators for institutions offering Islamic financial services. The revised version of the guide applies to banking, capital markets, and insurance institutions offering Islamic financial services. The guide serves the compilers and users of the prudential and structural Islamic financial indicators by promulgating the definitions and providing guidance on the concepts, data sources, accounting principles, compilation practices and computational techniques, and methodological issues that may assist in the accurate interpretation and use of these indicators.

    The guide first introduces the prudential and structural Islamic financial indicators project and development of the Islamic finance industry. Next, the part on the accounting standards and frameworks provides guidance on the accounting principles underlying data compilation, the definitions of the individual series used to calculate the ratios, and guidance to compilers on aggregation and consolidation of the data. It then provides definitions of the indicators and guidance on how to calculate the individual prudential and structural Islamic financial indicators, before providing advice on practical compilation and dissemination issues that data compilers are likely to face. Finally, the guide provides information on analytical uses of prudential and structural Islamic financial indicators in macro-prudential analysis and surveillance of the industry.

    The revised guide attempts to standardize the adoption of conceptual frameworks and relevant measurement principles that support the reporting structure and system to promote international data comparability. The guide encourages the compilation and dissemination, at the national level, of core, additional, and structural indicators, expressed in percentage or ratio terms, and facilitates the eventual transmission of these internationally comparable indicators, along with the underlying data series. The main objectives of the prudential and structural Islamic financial indicators, as explained in the guide, are to help:

    • Facilitate the monitoring and analysis of the soundness and stability of the Islamic financial services industry through a set of prudential, structural, and financial strength indicators
    • Support and coordinate the formulation, development, and enhancement of appropriate international prudential standards by IFSB
    • Promote the development of the Islamic financial services industry as a vehicle for stimulating economic development and reducing disparities in economic progress between nations
    • Strengthen transparency and international comparability of domestic Islamic financial services industry, to facilitate the integration into the international financial system through public accessibility to the prudential and structural Islamic financial indicators and other published cross-country industry data in IFSB research report
    • Ascertain the market shares of Sharī’ah-compliant financial transactions, products, and services as a percentage of the entire financial system, at both the national and global levels, to gauge the performance of the Islamic financial services industry at any given time

     

    Related Links

    Keywords: International, Banking, Insurance, Securities, Islamic Financial Services Industry, Islamic Banking, Guidance, Reporting, Prudential Islamic Indicators, IFSB

    Featured Experts
    Related Articles
    News

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    July 08, 2020 WebPage Regulatory News
    News

    PRA Statement on Application of Matching Adjustment Amid Crisis

    PRA published a statement to insurers that clarifies the approach to application of the matching adjustment during COVID-19 crisis.

    July 07, 2020 WebPage Regulatory News
    News

    EBA Provides Clarity on Implementation of Certain COVID-19 Policies

    EBA published a report on the implementation of selected COVID-19 policies within the prudential framework for banking sector.

    July 07, 2020 WebPage Regulatory News
    News

    EC Consults on Revision of Network and Information Systems Directive

    EC launched a consultation to revise the network and information systems (NIS) Directive (2016/1148), which was adopted in July 2016 and is the first horizontal internal market instrument aimed at improving the resilience of the EU against cybersecurity risks.

    July 07, 2020 WebPage Regulatory News
    News

    PRA Statement on LIBOR Transition and PRA Resolution-Related Rules

    PRA published a statement that outlines its view on the implications of LIBOR transition for contracts in scope of the “Contractual Recognition of Bail-In” and “Stay in Resolution” parts of the PRA Rulebook.

    July 07, 2020 WebPage Regulatory News
    News

    PRA Issues Updates to Pillar 2A Capital Framework in UK

    PRA published the policy statement PS15/20 to reflect additional resilience associated with higher macro-prudential buffers in a standard risk environment with a reduction in Pillar 2A capital requirements.

    July 06, 2020 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    BCBS published the eighteenth progress report on implementation of the Basel III regulatory framework in member jurisdictions.

    July 06, 2020 WebPage Regulatory News
    News

    FCA Proposes Guidance to Further Support Consumer Credit Customers

    FCA announced proposals that would provide continued support for certain consumer credit products to users, who are facing a financial impact because of the exceptional circumstances arising from the COVID-19 pandemic.

    July 03, 2020 WebPage Regulatory News
    News

    ACPR Publishes Draft of Taxonomy RAN 1.4.0 for Solvency II Reporting

    ACPR published a draft version of taxonomy RAN 1.4.0_PWD1, along with the related documentation, for Solvency II reporting.

    July 03, 2020 WebPage Regulatory News
    News

    BCBS Amends Guidelines on Sound Management of AML/CFT Risks

    BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).

    July 02, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5445