BNM Policy Document on Trade Credit Insurance and Trade Credit Takaful
BNM published a policy document sets out requirements on the offering of trade credit insurance and trade credit takaful by licensed insurers and takaful operators. The policy document comes into effect on May 03, 2019. The requirements for the recognition of trade credit insurance and trade credit takaful as credit risk mitigation are also outlined under the capital adequacy frameworks for Basel II (risk-weighted assets or RWAs) and Islamic banks (RWAs), respectively. Therefore, BNM also published updated documents on Capital Adequacy Framework (Basel II – risk-weighted assets) and Capital Adequacy Framework for Islamic banks (risk-weighted assets).
The policy document on trade credit insurance and trade credit takaful sets out the approval process and requirements on the offering of trade credit insurance by a licensed insurer and trade credit takaful by a licensed takaful operator. The document also sets out the treatment of trade credit insurance or trade credit takaful as credit risk mitigation (CRM) by a banking institution under the Capital Adequacy Framework applicable to it. These policy requirements seek to position insurance and takaful products to better meet the protection needs of businesses.
Related Links
- Notice
- Trade Credit Insurance and Trade Credit Takaful (PDF)
- Capital Adequacy Framework for Basel II (PDF)
- Capital Adequacy Framework for Islamic Banks (PDF)
Effective Date: May 03, 2019
Keywords: Asia Pacific, Malaysia, Banking, Insurance, Basel II, Capital Adequacy Framework, Risk-Weighted Assets, Trade Credit Insurance, Trade Credit Takaful, BNM
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Previous Article
FSB Publishes Update on Meeting of RCG for MENA RegionNext Article
EBA Single Rulebook Q&A: First Update for May 2019Related Articles
|
News
BCBS Consults on Revised Disclosures for Market Risk FrameworkBCBS launched a consultation on the revised disclosure requirements for the market risk framework for banks.
November 14, 2019
WebPage
Regulatory News
|
|
News
FSB Examines Implementation of Resolution Regimes in Financial SectorFSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions and sets out plans for further work.
November 14, 2019
WebPage
Regulatory News
|
|
News
PRA Publishes Final Policy on Maintenance of TMTP Under Solvency IIPRA published the policy statement (PS25/19) that contains the final supervisory statement (SS6/16) on maintenance of the transitional measure on technical provisions (TMTPs) under Solvency II.
November 14, 2019
WebPage
Regulatory News
|
|
News
BCBS Consults on Disclosure Templates of Sovereign Exposures of BanksBCBS published a consultation on the voluntary disclosure templates related to sovereign exposures of banks.
November 14, 2019
WebPage
Regulatory News
|
|
News
IAIS Adopts ComFrame, ICS, and Holistic Framework for Systemic RiskIAIS adopted a comprehensive set of reforms—Common Framework (ComFrame), Insurance Capital Standard (ICS) Version 2.0, and Holistic Framework for Systemic Risk—that will enable effective cross-border supervision of insurance groups and contribute to global financial stability.
November 14, 2019
WebPage
Regulatory News
|
|
News
PRA Publishes Templates for Statistical Disclosures Under Solvency IIPRA published templates for statistical disclosures, as required under Article 31(2) of the Solvency II Directive.
November 14, 2019
WebPage
Regulatory News
|
|
News
FASB Proposes Improvements to Derivatives and Hedging StandardFASB proposed an Accounting Standards Update, on codification improvements to hedge accounting under Topic 815, to clarify certain sections of the 2017 hedge accounting standard (Update 2017-12).
November 13, 2019
WebPage
Regulatory News
|
|
News
FASB Approves Guidance to Assist in Transition to New Reference RatesFASB approved an Accounting Standards Update (Topic 848) to provide temporary, optional guidance to ease the potential burden in accounting for, or recognizing the effects of, the reference rate reform on financial reporting.
November 13, 2019
WebPage
Regulatory News
|
|
News
BIS and MAS Launch Innovation Hub in SingaporeBIS and MAS launched the BIS Innovation Hub Center in Singapore.
November 13, 2019
WebPage
Regulatory News
|
|
News
MAS and Industry to Create Framework for Adoption of Responsible AIDAMAS announced that it is working with financial industry partners to create a framework for financial institutions to promote the responsible adoption of Artificial Intelligence and Data Analytics (AIDA).
November 13, 2019
WebPage
Regulatory News
|
