Malaysia-based Islamic Financial Services Board (IFSB) is preparing a guidance note for Islamic banks on the adoption of liquidity standards, according to Reuters.
The Islamic body warned that lenders lack high-quality assets to meet new regulatory requirements under Basel III.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
IFSB, which has already issued a liquidity guideline in March of last year, aims to issue the guidance note in 2014.
According to Reuters’ report, a separate guideline on capital adequacy, currently under revision, will be issued at the end of 2013.
The IFSB will focus on the liquidity coverage ratio of Basel III, which measures the amount of highly liquid assets held by banks that can help meet short term obligations.
IFSB has urged the industry to develop instruments to meet Basel III criteria and warned of potential problems when the standards are phased in over the next several years.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe IFSB sets global guidelines for Islamic finance, although national financial regulators have the final say on their implementation and enforcement.
