IFSB Consults on Core Principles for Islamic Deposit Insurance Systems
IFSB issued exposure draft on core principles for effective Islamic deposit insurance systems (CPIDIS). The exposure draft provides a set of core principles for the development and implementation of an effective Islamic deposit insurance system. The draft takes into consideration the specificities of Islamic banks, while complementing the existing international standards, principally the International Association of Deposit Insurers (IADI) core principles for effective deposit insurance systems (issued in November 2014). IFSB is inviting comments from central banks, regulatory and supervisory authorities, deposit insurance organizations, international organizations, institutions offering Islamic financial services (IIFS), academics, and other interested parties until July 05, 2019.
The objectives of the core principles for effective Islamic deposit insurance systems are to:
- Serve as a benchmark international framework to facilitate the development and implementation of effective Islamic deposit insurance system
- Enable the existing Islamic deposit insurance systems to identify best-practice gaps in their current modalities
- Facilitate an independent, third-party, or self- assessment of the compliance of an Islamic deposit insurance system with CPIDIS
The exposure draft has been jointly developed by IFSB in collaboration with the IADI. Overall, the core principles will promote further integration of Islamic deposit insurance with the international architecture for financial stability. In line with the IFSB due process for developing standards, IFSB organized a public hearing on June 18, 2019 in Kuala Lumpur, Malaysia to invite and solicit feedback on the exposure draft and its contents. IADI will also be conducting a public consultation exercise with its members and target audience, in line with its internal due process. In due course, both IADI and IFSB Secretariats will consolidate the public consultation feedback and work toward the final version of the core principles.
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Comment Due Date: July 05, 2019
Keywords: International, Banking, Islamic Banking, IADI, Deposit Insurance, CPIDIS, IFSB
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