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
Keywords: International, Banking, Insurance, Securities, Islamic Financial Services Industry, Islamic Banking, Guidance, Reporting, Prudential Islamic Indicators, IFSB
Previous ArticleFED Proposes to Revise and Extend Form FR Y-9C for Holding Companies
OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.
Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.
EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.
ECB published its response to the targeted EC consultation on the review of the bank crisis management and deposit insurance framework in EU.
ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.
BCBS, CPMI, and IOSCO (the Committees) are inviting entities that participate in market infrastructures and securities markets through an intermediary as well as non-bank intermediaries to complete voluntary surveys on the use of margin calls.
ECB published Decision 2021/752 to amend Decision 2019/1311 on the third series of targeted longer-term refinancing operations or TLTRO III.
The Central Bank of Ireland published Version 2.7 of the draft credit data template and rules for monthly AnaCredit reporting by banks.
OSFI proposed revisions to the Basel Capital Adequacy Reporting (BCAR) and leverage requirements returns for the 2023 reporting, with the comment period ending on July 09, 2021.
EBA published a discussion paper on review of the standardized nonperforming loans (NPL) transaction data templates, along with the proposed revised NPL data templates.