Islamic Financial Services Board (IFSB), a Malaysia-based standard-setting body for Islamic finance, is set to revise guidelines of overseeing global Islamic financial firms.
The new guidelines will widen the body’s original 2007 document called IFSB-5 to add regulatory capital, corporate governance, stress testing, securitisation exposures, liquidity, concentration and counterparty risk, reported Reuters. Furthermore, they will offer detailed guidance on Islamic windows, a common practice currently in several majority-Muslim countries.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
IFSB secretary-general Jaseem Ahmed told Reuters that the latest revision supports stricter Basel rules.
"Overall the revisions are significant, in particular the areas which were not envisaged in the IFSB-5," Ahmed said.
Ahmed further said that the latest revision is broadly similar to Pillar 2 of the Basel accords.
IFSB, which has 187 members, has issued guidelines on liquidity risk management and stress testing over the past 12 months.
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 GlobalDataIFSB is planning to disclose the revised standards on 9 December in Qatar. However, the final version of revised guidelines is expected to be published in April 2014.
