This 4-day Workshop is tailored for the regulatory and supervisory authorities as well as the market players in the banking sector in Palestine, and will discuss on the following IFSB Standards:
As a background, IFSB-1: Guiding Principles of Risk Management provides a set of guidelines of best practices for establishing and implementing effective risk management in IIFS. In particular, the Standard sets out 15 principles for managing the risks inherent in Sharī`ah-compliant financial businesses.
IFSB-2: Capital Adequacy Standard is the equivalent of Pillar 1 of Basel II for IIFS. It complements the Basel capital framework by raising the specificities of IIFS that include, inter-alia, the treatment of profit-sharing investment accounts (PSIA) and measuring the risk weights of Sharī`ah-compliant products. Moreover, the Standard proposes two methods for calculating the capital adequacy ratios, namely the Standard formula as well as the supervisory discretion formula.
GN-4: Guidance Note in Connection with the IFSB Capital Adequacy Standard: The Determination of Alpha in the Capital Adequacy Ratio for IIFS, for its part provides a methodology to estimate the value of alpha to be used in the supervisory discretion formula in calculating the CAR of IIFS; and to demonstrate how to measure the Displaced Commercial Risk (DCR).
In addition, IFSB-16: Revised Guidance on Key Elements In The Supervisory Review Process offers guidance on key elements in the supervisory review process for authorities supervising IIFS taking into consideration the specificities of the IIFS, the lessons learned from the crisis, while complementing the existing international standards on the supervisory review process, in particular those of the Basel Committee on Banking Supervision (BCBS).
Overall, this Workshop aims to:
This Workshop is hosted by the Palestine Monetary Authority and participation in this Workshop is by INVITATION only. For queries, please contact the IFSB Secretariat, Mr. Ahmed Barakat at [email protected].
Programme – Event Session(s)| Date | Time | Topics |
|---|---|---|
| Day 1 05/12/2016 | 08:30 – 09:00 | Registration |
| 09:00 – 10:00 | Opening Session Welcome Speech by H.E Mr. Azzam Shawwa, Governor, PMA Speech by Dr. Nagwa Sheikh Eldin, Assistant Secretary-General, IFSB Speech by Dr. Iyad Jayousi, General Manager, PBI Souvenir Distribution and Group Photo | |
| 10:00 – 12:00 | Session 1: IFSB-1: Guiding Principles of Risk Management for IIFS Understanding of Risks in IIFS Focus on Credit Risk Focus on Equity Investment Risk Focus on Operational Risk | |
| 12:00 – 13:00 | Lunch and Prayer | |
| 13:00 – 14:30 | Session 2: IFSB-1: Guiding Principles of Risk Management for IIFS Focus on Market Risk Focus on Liquidity Risk Focus on Rate of Return Risk Case Studies | |
| 14:30 – 14:45 | Coffee Break | |
| 14:45 – 16:00 | Session 3: IFSB-2: Capital Adequacy Standard for IIFS Need for Capital Regulation Pillar 1: Capital Adequacy Ratio (CAR): Understanding the Components of CAR CAR Formulas – Standard and Supervisory Discretion Treatment of PSIA – Supervisory Discretion Formula | |
| Day 2 06/12/2016 | 09:00 – 11:00 | Session 4: IFSB-2: Capital Adequacy Standard for IIFS Credit Risk Weights for Various Counterparties Off-balance Sheet Exposures Exposures in Investments Made under Profit-Sharing Modes Credit Risk Mitigation |
| 11:00 – 12:00 | Lunch and Prayer | |
| 12:00 – 13:30 | Session 5: IFSB-2: Capital Adequacy Standard for IIFS Measurement of Capital Adequacy Requirements for Market Risk Measurement of Market Risk Market Risk Weight Conversion Factor Case Study | |
| 13:30 – 13:45 | Coffee Break | |
| 13:45 – 15:30 | Session 6: IFSB-2: Capital Adequacy Standard for IIFS Overview of Operational Risk Understanding Operational Risk in Islamic Finance Measuring Operational Risks Group Exercise | |
| Day 3 07/12/2016 | 09:00 – 11:00 | Session 7: GN-4: The Determination of Alpha in the Capital Adequacy Ratio for IIFS Background of the Guidance Note Understanding Management of Profit-Sharing Investment Account (PSIA) Understanding the Concept of Alpha and Displaced Commercial Risk (DCR) Measurement of Risk Sharing in PSIA |
| 11:00 – 12:00 | Lunch and Prayer | |
| 12:00 – 13:30 | Session 8: GN-4: The Determination of Alpha in the Capital Adequacy Ratio for IIFS The Determination of Alpha and DCR Issues on Prudential Regulations and Requirements Role of Supervisory Authority in Determination of Alpha and DCR Case Study | |
| 13:30 – 13:45 | Coffee Break | |
| 13:45 – 15:30 | Session 9: IFSB-16: Revised Guidance on Key Elements In The Supervisory Review Process Necessary Preconditions for Effective Supervision Supervisory Approaches in the Supervision of IIFS Regulatory Capital Requirements Advanced Approaches and Supervisory Discretion | |
| Day 4 08/12/2016 | 09:00 – 11:00 | Session 10: IFSB-16: Revised Guidance on Key Elements In The Supervisory Review Process Internal Capital Adequacy Assessment Process (ICAAP) Corporate and Sharī’ah Governance Related Party Transactions Case Study |
| 11:00 – 12:00 | Lunch and Prayer | |
| 12:00 – 13:30 | Session 11: IFSB-16: Revised Guidance on Key Elements In The Supervisory Review Process Transparency and Market Discipline Consolidated and Cross-sector Supervision Risk Concentrations in IIFS Case Study | |
| 13:30 – 13:45 | Coffee Break | |
| 13:45 – 15:30 | Session 12: IFSB-16: Revised Guidance on Key Elements In The Supervisory Review Process Islamic “Windows” Operations Liquidity Risk Management and Supervision Sound Stress Testing Practices Supervisory Transparency and Accountability | |
| 15:30 – 16:00 | Closing & Certificate Giving Ceremony |
