Featured Product

    IFSB Adopts New Standards and Strategic Performance Plan for 2022-24

    December 10, 2021

    The Council of the Islamic Financial Services Board (IFSB) approved its strategic performance plan for 2022-2024 and adopted two standards in the form of a revised capital adequacy standard (IFSB-23) and a standard on core principles for Islamic finance regulation (IFSB-26). The strategic performance plan focuses on four strategic key result areas: formulating and issuing prudential standards, research, and statistics; facilitating the implementation of prudential standards and capacity development; increasing value in the IFSB membership, global visibility, and attractiveness; and efficiently managing of resources with good corporate governance practices. This strategic plan retains the strategic framework of the strategic performance plan for 2019-2021 with enhanced focus on certain aspects.

    The IFSB-26 standard contains a comprehensive set of 25 core principles that apply to payment systems, central securities depositories, securities settlement systems, central counterparties, and trade repositories (collectively referred to as financial market infrastructures) that undertake Sharīʿah-compliant activities and transactions. The IFSB-26 standard complements the Committee on Payment and Settlement Systems and the International Organization of Securities Commissions (CPSS-IOSCO) Principles for Financial Market Infrastructure (PFMI) and the associated Disclosure Framework and Assessment Methodology; it addresses the areas in which the existing CPSS-IOSCO documents either do not deal, or deal inadequately with the specificities of Islamic finance. It also considers lessons learned from the COVID-19 pandemic, particularly in areas relating to the operational resilience of financial market infrastructures. Additionally, IFSB-23, which is the revised capital adequacy standard, was developed to align the IFSB guidance on capital adequacy for banking sector with the latest updates to global capital standards, particularly those issued by the Basel Committee on Banking Supervision. The standard aims to:

    • Assist the institutions offering Islamic financial services and their supervisory authorities in the implementation of a capital adequacy framework, which will ensure effective coverage of risk exposures of institutions and allocation of appropriate capital to cover these risks
    • Provide an updated framework for regulatory capital components for institutions offering Islamic financial services, that comply with ShIarī`ah rules and principles
    • Review and enhance the capital adequacy requirements for various risk exposures related to Shar’iah complaint products and services offered by institutions offering Islamic financial services
    • Enhance the capital adequacy treatment for institutions offering Islamic financial services exposures relating to investments in Sukūk and securitization, in line with the current global regulatory standards and the development in the Islamic financial services industry
    • Delineate guidance on the application of leverage ratio and other macro-prudential measures for institutions offering Islamic financial services
    • Adapt international best practices and current and emerging standards related to capital adequacy for institutions offering Islamic financial services


    Related Links

    Keywords: International, Banking, Securities, Regulatory Capital, IFSB 23, IFSB 26, Core Principles, Basel, Strategic Plan, Shariah, Islamic Banking, PFMI, IFSB

    Featured Experts
    Related Articles

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News

    FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates

    The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.

    December 20, 2022 WebPage Regulatory News

    FSB Reports Assess NBFI Sector and Progress on LIBOR Transition

    The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.

    December 20, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8697