Featured Product

    IMF Board Decides to Formally Recognize CPIFR for Banking Sector

    May 24, 2018

    The Executive Board of the IMF endorsed the proposal on the use of the core principles for Islamic finance regulations (CPIFR), which were developed by IFSB with the participation of the Secretariat of BCBS. IMF also published the paper proposing to incorporate the Core Principles for Islamic Finance Regulations (CPIFR) for banks. The paper sought endorsement from the Executive Boards of the World Bank and the IMF on the use of the CPIFR and its assessment methodology. CPIFR are intended be a set of core principles for the regulation and supervision of the Islamic banking industry and are designed to take into consideration the specificities of Islamic banks.

    The paper had proposed to incorporate the CPIFR (Banking Sector) issued by IFSB, as part of the standards used in assessing the banking regulatory and supervisory regimes of relevant member jurisdictions under FSAP and the Reports on Observance of Standards and Codes (ROSCs). The CPIFR largely reflects the order of the Basel Core Principles on Effective Banking Supervision (BCP), with five additional principles that are specific to Islamic banking operations. Thus, for countries that have a systemically significant Islamic banking sector, the assessment of the banking regulation and supervision regime of the jurisdiction would be against the CPIFR (for fully Islamic banking systems) or BCP and the five additional core principles under the CPIFR (for dual banking systems). The IMF Directors broadly endorsed the use of CPIFR and their assessment methodology for undertaking financial sector assessments and preparing ROSCs initiated after January 01, 2019, on the effectiveness of regulation and supervision of Islamic banks.

    The CPIFR will complement the international architecture for financial stability, while simultaneously providing incentives for improving the prudential framework for Islamic banking industry across jurisdictions. The CPIFR and the associated methodology will be applied in financial sector assessments undertaken in fully Islamic banking systems and, as a supplement to BCP, in dual banking systems where Islamic banks have a significant market share (of 15% or more). For countries in which the share of Islamic banks is below this threshold, the adoption of the CPIFR could be supported through technical assistance (when requested by the member) to help nascent financial systems to develop safely and sustainably. 

     

    Related Links

    Keywords: International, Middle East and Africa, Banking, Islamic Banking, CPIFR, Assessment Methodology, Financial Stability, IFSB, BCBS, IMF

    Related Articles
    News

    MAS Concludes Blockchain Payments Prototype Shows Commercial Potential

    MAS and Temasek jointly released a report to mark the successful conclusion of the fifth and final phase of Project Ubin, which focused on building a blockchain-based multi-currency payments network prototype.

    July 13, 2020 WebPage Regulatory News
    News

    EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.10

    EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.

    July 10, 2020 WebPage Regulatory News
    News

    APRA Updates Reporting Validation Rules in July 2020

    APRA updated the lists of the Direct to APRA (D2A) validation rules for authorized deposit-taking institutions, insurers, and superannuation entities.

    July 10, 2020 WebPage Regulatory News
    News

    PRA to Partly Apply EBA Guidelines on Disclosures for COVID Measures

    PRA updated the statement that provides guidance to regulated firms on implementation of the EBA guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis.

    July 10, 2020 WebPage Regulatory News
    News

    EBA Updates List of Correlated Currencies Under CRR

    EBA updated the 2019 list of closely correlated currencies that was originally published in December 2013.

    July 10, 2020 WebPage Regulatory News
    News

    FASB Proposes to Delay Implementation of Insurance Contracts Standard

    FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).

    July 09, 2020 WebPage Regulatory News
    News

    APRA Updates Regulatory Approach to Loan Deferrals Amid COVID Crisis

    APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS and FSB Set Out Recommendations for Benchmark Transition

    BCBS and FSB published a report on supervisory issues associated with benchmark transition.

    July 09, 2020 WebPage Regulatory News
    News

    IAIS Sets Out Recommendations for Benchmark Transition for Insurers

    IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.

    July 09, 2020 WebPage Regulatory News
    News

    ESMA Updates Reporting Manual on European Single Electronic Format

    ESMA updated the reporting manual on the European Single Electronic Format (ESEF).

    July 09, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5469