General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
November 01, 2018

IFSB published answers to the selected frequently asked questions (FAQs) on four IFSB standards and guidelines. The standards and guidelines include guiding principles on Sharīʻah governance systems for Institutions offering Islamic Financial Services, or IIFS (IFSB-10), standard on solvency requirements for Takāful undertakings (IFSB-11), revised capital adequacy standard for IIFS (IFSB-15), and guidance note on quantitative measures for liquidity risk management in IIFS (GN-6); these standards and guidelines were published in December 2009, December 2010, December 2013, and April 2015, respectively. IFSB welcomes feedback for improvement of the FAQs, which provide additional clarifications on the standards.

FAQs on IFSB-10. IFSB-10 provides guidance on the principles of Sharīʻah governance systems. Therefore, the FAQs for IFSB-10 address key questions on how the Sharīʿahgovernance systems can complement the existing governance, control, and compliance functions within an IIFS. The responses also clarify suitable Sharīʻah governance structure to be adopted by IIFS in various jurisdictions.

FAQs on IFSB-11. These FAQs highlight key questions on overview of the standard and valuation of technical provisions. The FAQs also attempt to address the distinguishing factors between takāful undertakings and conventional insurance for solvency requirements.

FAQs on IFSB-15. The FAQ responses for IFSB-15 seek to clarify the qualifying criteria to be included in capital components of an IIFS. The FAQs also explain the definitions for different kinds of regulatory adjustments, for example, the treatments of pension funds, cash-flow hedge reserve, and zakāh obligations, among others. Examples of computation of risk-weighted assets for IFSB standard formula as well as supervisor discretion formula are illustrated in the FAQ answers.

FAQs on GN-6. The main objective of the GN-6 is to provide guidance of maintaining liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) by the IIFS. Therefore, the FAQs on this guidance note elaborate related issues on the eligibility criteria and other specific details on the eligibility criteria of Sharīʻah-compliant high-quality liquid assets as well as calculation methodologies. The FAQ responses also clarify the treatment of profit-sharing investment account for LCR purposes to determine appropriate run-off factors under different scenarios.

 

Related Links

Keywords: International, Banking, Insurance, IFSB-10, IFSB-11, IFSB-15, GN-6, Solvency Requirements, Capital Adequacy, Liquidity Risk, IIFS, IFSB

Related Articles
News

ECB Updates Validation Checks and List of Identifiers Under AnaCredit

ECB updated the AnaCredit validation checks (Version 1.4) and the list of national identifiers (version 2.4) for AnaCredit reporting.

March 21, 2019 WebPage Regulatory News
News

BCBS Publishes Results of the Basel III Monitoring Exercise

BCBS published results of the Basel III monitoring exercise based on data as of June 30, 2018.

March 20, 2019 WebPage Regulatory News
News

EBA, FCA, and PRA Agree on MoU Template for Supervisory Cooperation

EBA, FCA, and PRA announced that they have agreed on a template for the Memorandum of Understanding (MoU) that sets out the expectations for supervisory cooperation and information-sharing arrangements between UK and EU/European Economic Area national authorities.

March 20, 2019 WebPage Regulatory News
News

HKMA Publishes CoP on Loss-Absorbing Capacity Requirements of Banks

HKMA issued, in relation to the Financial Institutions Resolution (Loss-Absorbing Capacity Requirements—Banking Sector) Rules (LAC Rules) a chapter of a code of practice (LAC CoP) under section 196 of the Financial Institutions Resolution Ordinance (FIRO).

March 20, 2019 WebPage Regulatory News
News

EBA Publishes Reports Monitoring the Implementation of Basel III in EU

EBA published two reports measuring the impact of implementing the final Basel III reforms and monitoring the implementation of liquidity measures in EU.

March 20, 2019 WebPage Regulatory News
News

BCBS Publishes Results of Survey on Proportionality in Bank Regulation

BCBS published a report presenting the results of a survey conducted on proportionality practices in bank regulation and supervision.

March 19, 2019 WebPage Regulatory News
News

US Agencies Adopt Interim Rule to Facilitate Transfers of Legacy Swaps

US Agencies (FCA, FDIC, FED, FHFA, and OCC) are adopting and inviting comments on an interim final rule.

March 19, 2019 WebPage Regulatory News
News

HKMA Expects Banks to Manage Risks Related to Crypto-Asset Exposures

HKMA issued a statement announcing that it expects authorized institutions to take note of the BCBS statement on crypto-assets and its prudential expectations.

March 18, 2019 WebPage Regulatory News
News

SNB Issues Form on Solvency Risk of Counterparties in Interbank Sector

SNB released form (Version 5.00) and related documentation for reporting solvency risk of counterparties in the interbank sector.

March 18, 2019 WebPage Regulatory News
News

EIOPA Requests Data on LTG Measures from Insurers Under Solvency II

EIOPA has requested the European Economic Area insurance undertakings, which are subject to Solvency II, to provide information on the long-term guarantee (LTG) measures.

March 18, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2769