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 Insights

BCBS Finds Liquidity Risk Management Principles Remain Fit for Purpose

BCBS completed a review of its 2008 Principles for sound liquidity risk management and supervision. The review confirmed that the principles remain fit for purpose.

January 17, 2019 WebPage Regulatory News

HKMA Urges Local Banks to Start Working on FRTB Implementation

HKMA announced that it plans to issue a consultation paper on the new market risk standard in the second quarter of 2019.

January 17, 2019 WebPage Regulatory News

EBA Finalizes Guidelines for High-Risk Exposures Under CRR

EBA published the final guidelines on the specification of types of exposures to be associated with high risk under the Capital Requirements Regulation (CRR). The guidelines are intended to facilitate a higher degree of comparability in terms of the current practices in identifying high-risk exposures.

January 17, 2019 WebPage Regulatory News

MAS Guidelines on Risk Mitigation Requirements for OTC Derivatives

MAS published guidelines on risk mitigation requirements for non-centrally cleared over-the-counter (OTC) derivatives contracts.

January 17, 2019 WebPage Regulatory News

BoE Publishes the Schedule for Statistical Reporting for 2019

BoE published the updated schedule for statistical reporting for 2019. The reporting institutions use the online statistical data application (OSCA) to submit statistical data to BoE.

January 16, 2019 WebPage Regulatory News

PRA Delays Final Direction on Reporting of Private Securitizations

PRA and FCA have delayed the issuance of final direction, including the final template, on reporting of private securitizations, from January 15, 2019 to the end of January 2019.

January 15, 2019 WebPage Regulatory News

SNB Updates Forms on Supervisory Reporting for Banks

SNB published Version 1.7 of reporting forms (AUR_U, AUR_UEA, AUR_UES, AURH_U, AUR_K, AUR_KEA, and AURH_K) and the related documentation for supervisory reporting on an individual and consolidated basis.

January 15, 2019 WebPage Regulatory News

BCBS Finalizes Market Risk Capital Framework and Work Program for 2019

BCBS published the final framework for market risk capital requirements and its work program for 2019. Also published was an explanatory note to provide a non-technical description of the overall market risk framework, the changes that have been incorporated into in this version of the framework and impact of the framework.

January 14, 2019 WebPage Regulatory News

EBA Single Rulebook Q&A: First Update for January 2019

EBA published answers to 13 questions under the Single Rulebook question and answer (Q&A) updates for this week.

January 11, 2019 WebPage Regulatory News

PRA Proposes to Amend Supervisory Statement on Credit Risk Mitigation

PRA published the consultation paper CP1/19 that is proposing changes to the supervisory statement (SS17/13) on credit risk mitigation.

January 10, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2473