IFSB Adopts Technical Note on Recovery and Resolution Framework
The Council of the Islamic Financial Services Board (IFSB) approved the adoption of a new Technical Note (TN-4) on Recovery and Resolution for institutions offering Islamic financial services.
The technical note is intended to facilitate the relevant regulatory and supervisory authorities and other related authorities to establish an effective recovery and resolution framework; it is also intended to help establish appropriate tools for the effective implementation of this framework for institutions offering Islamic financial services, in a manner that is fully compliant with Sharī‘ah principles. The technical note complements the existing Financial Stability Board (FSB) Key Attributes of Effective Resolution Regimes by providing complementary guidance and information addressing the idiosyncrasies of Islamic finance and Sharī‘ah compliance requirements. The objectives of the technical note include:
- setting out the essential measures to carry out effective recovery and resolution planning for all institutions offering Islamic financial services.
- supporting and enabling effective resolvability assessments critical for the institutions offering Islamic financial services.
- ensuring Sharī‘ah governance in relation to the recovery and resolution framework for institutions offering Islamic financial services.
The technical note intends 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 technical note is applicable to all institutions offering Islamic financial services, including commercial banks, investment banks, and other fund-mobilizing institutions, as determined by the respective supervisory and related authorities, that offer services in accordance with the Sharī`ah rules and principles. The scope 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 Link: Press Release
Keywords: International, Banking, Insurance, Securities, Basel, Islamic Finance, Islamic Banking, Resolution Framework, Recovery Planning, Key Attributes, FSB, Technical Note, D-SIBs, IFSB
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Related Articles
EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis
The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.
EBA Mulls Inclusion of Environmental & Social Risks to Pillar 1 Rules
The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.
BCBS Consults on Disclosure of Crypto-Asset Exposures of Banks
As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.
BCBS and EBA Publish Results of Basel III Monitoring Exercise
The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.
PRA Updates Timeline for Final Basel III Rules, Issues Other Updates
The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.
US Treasury Sets Out Principles for Net-Zero Financing
The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.
EC Launches Survey on G7 Principles on Generative AI
The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.
ISSB Sustainability Standards Expected to Become Global Baseline
The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.
IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance
Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.
BCBS Assesses NSFR and Large Exposures Rules in US
The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.