Featured Product

    IFSB Publishes FAQs on Islamic Finance Standards

    October 06, 2021

    The Islamic Financial Services Board (IFSB) published a set of frequently asked questions (FAQs) that provide additional guidance on four IFSB standards. These standards are IFSB-12 on guiding principles on liquidity risk management for institutions offering Islamic financial services, IFSB-13 on guiding principles on stress testing for institutions offering Islamic financial services, IFSB-24 on guiding principles for investor protection in Islamic capital markets, and IFSB-25 on disclosures to promote transparency and market discipline for takāful/retakāful undertakings. The new set of FAQs offers clarifications and explanative directions on the issued standards.

    The FAQs for IFSB-12 give explanation and guide about the main principles in the effective management of liquidity risk in institutions offering Islamic financial services. These include identification and measuring liquidity risk and the role of the top management and supervisors of an institution. The questions also address the key factors in controlling and mitigating liquidity risk and how to report and disclose this risk. In addition, the FAQs provide clarifications related to liquidity risk management at the consolidated level, along with the home-host and cross-sector supervision for liquidity risk. The FAQs for IFSB-13 include responses to questions raised about IFSB-13, including questions regarding the differences between scenario analysis and sensitivity tests, the role of Supervisory Sharīʻah Board in stress testing framework, stress testing related to capital planning, and model and parameter risks posed by using models for stress testing. 


    Related Links

    Keywords: International, Banking, Insurance, Securities, FAQ, Islamic Finance, Liquidity Risk, Stress Testing, Regulatory Capital, IFSB

    Featured Experts
    Related Articles

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News

    FASB Proposes Improvements to 2023 GAAP Reporting Taxonomy

    The Financial Accounting Standards Board (FASB) is seeking comments, until November 03, 2022, on the proposed technical and other conforming improvements for the 2023 GAAP Financial Reporting Taxonomy.

    November 03, 2022 WebPage Regulatory News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8588