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

    ECB Finalizes Methodology to Assess CCR and A-CVA Risk of Banks

    ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.

    September 18, 2020 WebPage Regulatory News
    News

    EBA Provides Opinion on Definition of Credit Institution in CRR

    EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).

    September 18, 2020 WebPage Regulatory News
    News

    APRA Consults on Alignment of Daily Liquidity Report for Banks

    APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.

    September 17, 2020 WebPage Regulatory News
    News

    FED Releases Scenarios for Second Round of Stress Tests on Banks

    FED released hypothetical scenarios for a second round of stress tests for banks.

    September 17, 2020 WebPage Regulatory News
    News

    PRA Announces Update on Supervisory Benchmarking Portfolio Exercise

    PRA published updates in relation to the 2021 Supervisory Benchmarking Portfolio exercise.

    September 14, 2020 WebPage Regulatory News
    News

    FED Revises and Extends Capital Assessment and Stress Testing Reports

    FED adopted a proposal to extend for three years, with revision, the capital assessments and stress testing reports (FR Y-14A/Q/M; OMB No. 7100-0341).

    September 14, 2020 WebPage Regulatory News
    News

    HKMA Updates Policy Module for Non-Centrally Cleared OTC Derivatives

    HKMA revised the Supervisory Policy Manual module CR-G-14 on margin and other risk mitigation standards for non-centrally cleared over-the-counter (OTC) derivatives transactions.

    September 11, 2020 WebPage Regulatory News
    News

    EBA Updates List of Validation Rules for Reporting by Banks

    EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.

    September 10, 2020 WebPage Regulatory News
    News

    EBA Responds to EC Call for Advice to Strengthen AML/CFT Framework

    EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).

    September 10, 2020 WebPage Regulatory News
    News

    NGFS Advocates Environmental Risk Analysis for Financial Sector

    NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.

    September 10, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5803