OJK Supports Efforts to Increase Adoption of IFSB Standards
Wimboh Santoso, the Chairman of the Board of Commissioners of OJK, at the 33rd meeting of the IFSB Board, conveyed that OJK supports efforts to increase adoption of IFSB standards One of these standards encompasses the Impact and Consistency Assessment (ICAP) based on the results of self assessment.
As a G20 country, Indonesia has become accustomed to the Regulatory Consistency Assessment Program (RCAP) process to assess the consistency of the application of Basel III and will share experiences in implementing the ICAP. The IFSB Council has decided to approve the adoption of three new standards, namely:
- IFSB-20 on Elements Key in the Supervisory Review Process of Takāful/Retakāful Undertakings. This standard provides guidance to supervisors about minimum standards for supervisory review of effective and efficient processes for Takaful/Re-Takaful,
- IFSB-21 on Core Principles for Islamic Finance Regulation. This standard sets out 38 high-level core principles and their associated assessment methodology, which describes a broad, general framework for the regulation of Islamic capital markets.
- IFSB-22 on Revised Standard on Disclosure to Promote Transparency and Market Discipline for Institutions Offering Islamic Financial Services (IIFS). This standard establishes a set of principles and key practices that Islamic banks must follow while making disclosures. The aim is to promote consistency and comparability of disclosures by introducing harmonized templates for disclosure of quantitative information in key areas, including capital adequacy, regulatory risk exposures, investment accounts, and Sharīʻah governance.
The IFSB Board also asks its members to conduct self assessment. From the results of the assessment, IFSB can form taskforce to provide assistance to countries that still have constraints or gaps in its application. Thus, the level of implementation of the standards produced by IFSB will be higher and consistent. The meeting organized by the Islamic Development Bank Group (IsDB) was led by HE Mohammad Y. Al Hashel, Governor of the Central Bank of Kuwait and Chair of the IFSB for 2018. The meeting was attended by 12 central bank governors and regulatory and supervisory authority commissioners, along with 10 senior representatives from the council and full members of IFSB, representing 19 countries. In addition to the Chairperson of the OJK Board of Commissioners, the Governor of Bank Indonesia also attended as a representative from Indonesia.
Related Link: Press Release
Keywords: Asia Pacific, Indonesia, Banking, Insurance, Securities, Islamic Banking, Islamic Finance, IFSB-20, IFSB-21, IFSB-22, IFSB, OJK
Previous Article
FASB Proposes Technical Improvements for 2020 SEC Reporting TaxonomyRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
