|11-06-2014, 08:39 AM||#1|
IFSB outlines key guidance on liquidity for Islamic banks
The Islamic Financial Services Board (IFSB) has issued draft guidance for liquidity risk management and a new standard for regulatory supervision for Islamic Banks.
Restricted by a lack of well-development securities markets, Islamic banks are facing great uncertainty over how their deposits are treated by regulators.
The IFSB’s guidance draft on liquidity risk management however clarifies the accounting treatment of Islamic deposits, and details the types of high quality liquid assets (HQLA) that Islamic banks should hold to meet the Basel III requirements that are now being carried out globally.
HQLA could include cash and central bank reserves, and range to sukuk (Islamic bonds) launched by either sovereigns or corporates.
However, considering the shortage of these instruments, the IFSB has outlined three other measures for regulators to take to facilitate the industry.
The guidance said regulators could allow banks to hold HQLA in international currencies, take liquidity facilities from central banks, or widen HQLA criteria.
The IFSB also published a draft standard on regulation and supervision core principles that will come into effect at the start of 2016.
These principles imitate the Basel core principles, and also tackle other issues such as the treatment of Islamic window operations.
This would notably help Islamic banks fulfill the liquidity coverage ratios of Basel III that are being phased in, and could ease some of the hardships Islamic banks have when trying to coincide with international standards in funding compared with conventional banks.
The guidelines will allow national financial regulators to have the decision on how they apply standards, and its approach will help integrate the industry’s practices in its core centers in Southeast Asia and the Middle East.
|مواقع النشر (المفضلة)|
|الذين يشاهدون محتوى الموضوع الآن : 1 ( الأعضاء 0 والزوار 1)|
|أدوات الموضوع||إبحث في الموضوع|
|انواع عرض الموضوع|
|الموضوع||كاتب الموضوع||المنتدى||مشاركات||آخر مشاركة|
|Gold continues slide before Fed guidance on interest rates||Hazem Ahlawy||Forex News||0||10-29-2014 08:32 PM|
|Islamic banks are set to boost their market share in GCC countries||Hazem Ahlawy||Forex News||0||10-14-2014 02:47 PM|
|السيولة liquidity||Hazem Ahlawy||GENERAL FOREX DISCUSSIONS||0||09-11-2014 05:14 AM|
|Stock markets calm as investors look for policy guidance||Hazem Ahlawy||Forex News||0||09-04-2014 04:24 PM|