Featured Product

    IFSB Consults on Technical Note on Recovery and Resolution Framework

    November 15, 2021

    The Islamic Financial Services Board (IFSB) published an exposure draft of Technical Note-4 on recovery and resolution for institutions offering Islamic financial services. IFSB invites comments, until December 20, 2021, from central banks, regulatory and supervisory authorities, international organizations, institutions offering Islamic financial services, academics and other interested parties.

    The proposed draft is aimed to complement the existing Key Attributes of the Financial Stability Board (FSB) by providing complementary standards and information addressing the idiosyncrasies of Islamic finance and Sharī‘ah compliance requirements applicable to each Key Attribute. In addition, the Technical Note on Recovery and Resolution intends to provide guidance that addresses Sharī‘ah specificities in relation to the high-level recovery and resolution framework and the recovery planning process for institutions offering Islamic financial services, which are not covered in the FSB’s Key Attributes. The primary objective of the Technical Note is to facilitate the relevant regulatory and supervisory authorities and other related authorities to establish an effective recovery and resolution framework, along with the appropriate tools for its effective implementation, for institutions offering Islamic financial services in a manner that is fully compliant with the Sharī‘ah principles. The foregoing primary objective of the Technical Note subsumes the following constituent objectives:

    • To set out the essential measures to carry out effective recovery and resolution planning for all institutions offering Islamic financial services
    • To support and enable effective resolvability assessments critical for the institutions offering Islamic financial services
    • To ensure Sharī‘ah governance in relation to the recovery and resolution framework for institutions offering Islamic financial services

    The Technical Note is primarily intended to facilitate the establishment of effective recovery and resolution frameworks for institutions offering Islamic financial services as part of the firm-level regulation of full-fledged (that is, separately incorporated) banks, including both domestic systemically important banks (D-SIBs) and non-DSIBs. The institutions offering Islamic financial services include, but are not limited to, commercial banks, investment banks, and other fund-mobilizing institutions, as determined by the respective supervisory and related authorities, that offer services in accordance with Sharī`ah rules and principles. The scope of the Technical Note on Recovery and Resolution also includes Islamic banking “windows” (either a branch or a dedicated unit), which are part of a conventional financial institution while providing financial services in a fully Sharī‘ah-compliant manner.

     

    Related Links

    Comment Due Date: December 29, 2021

    Keywords: International, Banking, Insurance, Securities, Islamic Finance, Islamic Banking, Resolution Framework, Recovery Planning, Key Attributes, FSB, Technical Note, D-SIBs, IFSB

    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BCBS Issues Climate Risk Principles while HKMA Expresses Its Support

    The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.

    June 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8286