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
FINMA Approves Merger of Credit Suisse and UBS
The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.
BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks
The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
MFSA Sets Out Supervisory Priorities, Issues Reporting Updates
The Malta Financial Services Authority (MFSA) outlined its supervisory priorities for 2023
German Regulators Issue Multiple Reporting Updates for Banks
Deutsche Bundesbank published the nationally deactivated validation rules for the German Commercial Code (HGB) users on the taxonomy 3.2, which became valid from December 31, 2022
BCBS Report Examines Impact of Basel III Framework for Banks
The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.
PRA Consults on Prudential Rules for "Simpler-Regime" Firms
Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.