IFSB Publishes FAQs for Islamic Finance Standards
IFSB published a set of frequently asked questions (FAQs) that provide additional guidance on four IFSB standards. These standards are IFSB-3 on guiding principles on corporate governance for institutions offering only Islamic financial services, IFSB-6 on guiding principles on governance for Islamic Collective Investment Schemes (ICIS), IFSB-14 on risk management for Takāful (insurance) undertakings, and a relatively new IFSB standard TN-3 on technical note on financial inclusion and Islamic finance. The FAQs present clarifications and explanative directions on the standards.
The FAQs for IFSB-3 explains, among other things, the main principles on establishing a comprehensive governance policy framework for institutions offering Islamic financial services, provides insights on best practices for the governance committee in the institutions offering Islamic financial services and managing investment account holders. The FAQs for IFSB-14 are developed to address the risks specific to Takāful and Sharī`ah specificities in risk management process for takāful undertakings as well as the key elements of the supervisory review process are also covered. The FAQs for TN-3 gives explanatory notes to definition of financial inclusion on Islamic finance, its specificities, its compliance with regulatory requirements and some contemporary challenges.
IFSB announced holding an Innovation Forum on digital transformation of Islamic finance and other innovative solutions for post-COVID-19 recovery on November 30, 2020. The key topics of the discussion include sustainable Sukūk to Aid COVID-19 recovery and “Sovereign Green Sukūk and Cash Awqaf Linked Sukūk issuance.” In addition, IFSB announced conducting Islamic Financial Stability Forum on December 16, 2020 to discuss the implications of COVID-19 to the stability of Islamic financial services industry.
Related Links
- Press Release on FAQs
- FAQs on IFSB Standards
- Press Release on Innovation Forum
- Press Release on Islamic Financial Stability Forum
Keywords: International, Banking, Insurance, Securities, FAQ, Governance, ESG, Collective Investment Schemes, Islamic Finance, COVID-19, IFSB
Featured Experts
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Previous Article
EIOPA Consults on KPIs on Sustainability for Non-Financial ReportingRelated Articles
EBA Publishes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
EU to Amend Credit Risk Adjustment Rules; ESAs Submit Queries on SFDR
The European Council published a draft Commission Delegated Regulation to amend the regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.
MAS Amends Notice 635 and Issues Second Proposal on Green Taxonomy
The Monetary Authority of Singapore (MAS) published amendments to Notice 635, which sets out requirements that a bank in Singapore has to comply with when granting an unsecured non-card credit facility to individuals.
EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
