Kuala Lumpur, 9 July 2014 – The Islamic Financial Services Board (IFSB) is pleased to announce that an FIS Workshop for Regulatory and Supervisory Authorities of the IFSB Member Countries (Banking Sector) will be held on 18 – 22 August 2014 at Sasana Kijang, Bank Negara Malaysia, Kuala Lumpur.
The Workshops will focus on the Revised Capital Adequacy Standard for Institutions offering Islamic Financial Services (IIFS) (IFSB-15) which was issued by the IFSB in December 2013. A session will also be conducted on the Guidance Note in Connection with the IFSB Capital Adequacy Standard: The Determination of Alpha in the Capital Adequacy Ratio (GN-4).
The Revised Capital Adequacy Standard aims to assist the implementation of a capital adequacy framework that will ensure effective coverage of risk exposures of the IIFS and allocation of appropriate capital to cover these risks, based predominantly on the Standardised Approach. IFSB-15 provides guidance on the features and criteria for high-quality regulatory capital components, including Additional Tier and Tier 2, which comply with Sharī`ah rules and principles. Similarly, it includes new guidance on macroprudential tools, such as capital buffers, leverage ratio and domestic systemically important banks, which will facilitate supervisory authorities in achieving the goal of protecting the banking system and the real economy from system-wide shocks.
This Standard also provides more elaborate guidance on capital adequacy treatment of various risk exposures related to Sharī`ah-compliant products and services, including Sukūk, securitisation and real estate. Supervisory authorities among the IFSB member countries are expected to start the implementation of IFSB-15 in their respective jurisdictions by January 2015.
GN-4 aims to provide a methodology to estimate the value of “alpha” to be used in the supervisory discretion formula in calculating capital adequacy ratio of IIFS and demonstrate how to measure the displaced commercial risk that is the additional risk that IIFS shareholders may assume in order to cushion the returns payable to investment account holders against variations in asset returns.
The Workshops are tailored for the banking regulatory and supervisory authorities that are members of the IFSB. Participation for these Workshops is by invitation only.
Two other planned Workshops in 2014 are the FIS Workshop for the Banking Sector Series in Dakar, Senegal on 3 – 5 September 2014 and in Cairo, Egypt on 22 – 24 September 2014. These Workshops are tailored for both banking regulatory and supervisory authorities as well as market players that are members of the IFSB. The IFSB is also planning to organise two RSA Workshops (Takāful and Islamic Capital Market) in November 2014.
For more information on the Workshops, please visit www.ifsb.org or contact Mr. Hamizi Hamzah at [email protected].
