This 4-day workshop is tailored for the regulatory and supervisory authorities and the market players for the banking sector within Sudan. The major focus of the workshop will be on the most recent Guiding Principles which address the new global regulatory requirements for the supervisory review process and for liquidity management. The workshop will discuss the following IFSB Standards: IFSB-16: Revised Guidance on Key Elements In The Supervisory Review Process of IIFS GN-6: Guidance Note on Quantitative Measures for Liquidity Risk Management in IIFS Overall, this Workshop aims to: Enhance the participants’ understanding of the respective Standards and Guiding Principles thereby facilitating the implementation of these standards in their respective jurisdictions; Assist the participants in the practical application of issues addressed in the particular standards through case studies, hands-on exercises and other interactive tools; and Promote the sharing of experiences among the participants on the implementation of respective IFSB Standards and Guiding Principles.  This Workshop is hosted by Central Bank of Sudan and participation in this Workshop is by INVITATION only. For queries, please contact the IFSB Secretariat, Mr. Hamizi Hamzah at [email protected]. Programme - Event Session(s) Date Time Topics Day 1 11/01/2016 09:00 - 09:30 Registration 09:30 - 09:45 Opening Session by the IFSB and the CBOS Representatives 09:45 - 11:00 Session 1: IFSB-16: Revised Guidance on Key Elements In The Supervisory Review Process (SRP) Introduction to IFSB-16 Necessary Preconditions for Effective Supervision Additional Considerations in the Issuance of an IIFS License Supervisory Approaches in the Supervision of IIFS 11:00 - 11:30 Group Photo and Coffee Break 11:30 - 13:00 Session 2: IFSB-16: Revised Guidance on Key Elements In The SRP - Continued Regulatory Capital Requirements Guidance on the Slotting Method Treatment of IAH and Displaced Commercial Risk Advanced Approaches and Supervisory Discretion 13:00 - 14:00 Lunch and Prayer 14:00 - 16:00 Session 3: IFSB-16: Revised Guidance on Key Elements In The SRP - Continued Internal Capital Adequacy Assessment Process (ICAAP) ICAAP Framework for IIFS Supervisory Review Process in ICAAP Case Study 16:00 - 16:30 Coffee Break Day 2 12/01/2016 09:00 - 09:30 Registration 09:30 - 11:00 Session 4: IFSB-16: Revised Guidance on Key Elements In The SRP - Continued Corporate Governance Sharī`ah Governance Risk Management Processes Enterprise-wide Risk Management Framework 11:00 - 11:30 Coffee Break 11:30 - 13:00 Session 5: IFSB 16: Revised Guidance on Key Elements In The SRP - Continued Related Party Transactions Secrutisation Risk and Related Off-balance Sheet Exposures Special Purpose Entities (SPEs) and Key Considerations in the Supervisory Review Process Case Study 13:00 - 14:00 Lunch and Prayer 14:00 - 16:00 Session 6: IFSB 16: Revised Guidance on Key Elements In The SRP - Continued Transparency and Market Discipline Consolidated and Home-host Supervision Supervisory College and IIFS Specific Issues Case Study 16:00 - 16:30 Coffee Break Day 3 13/01/2016 09:00 - 09:30 Registration 09:30 - 11:00 Session 7: IFSB 16: Revised Guidance on Key Elements In The SRP - Continued Supervisory Review for Credit Concentration Risk Concentration Limits for Real Estate Investment Islamic Windows Operations Case Study 11:00 - 11:30 Coffee Break 11:30 - 13:00 Session 8: IFSB-16: Revised Guidance on Key Elements In The SRP - Continued Liquidity Risk Management and Supervision Sound Stress Testing Practices Sharī`ah-compliant Hedging Techniques Supervisory Transparency and Accountability 13:00 - 14:00 Lunch and Prayer 14:00 - 16:00 Session 9: GN-6: Guidance Note on Quantitative Measures for Liquidity Risk Management Application of the Liquidity Coverage Ratio (LCR) in IIFS Definition and Categorisation of High Quality Liquid Assets (HQLA) Operational Considerations for HQLA Infrastructure Issues in the Availability of Sharī`ah-compliant HQLA 16:00 - 16:30 Coffee Break Day 4 14/01/2016 09:00 - 09:30 Registration 09:30 - 11:00 Session 10: GN-6: Guidance Note on Quantitative Measures for Liquidity Risk Management - Continued Components of Total Net Cash Outflows Categories of Cash Outflow Cash Inflows Case Study 11:30 - 11:30 Coffee Break 11:30 - 13:00 Session 11: GN-6: Guidance Note on Quantitative Measures for Liquidity Risk Management - Continued Net Stable Funding Ratio (NSFR) Application of the NSFR in IIFS The Internal Liquidity Adequacy Assessment and Supervisory Liquidity Review Processes Application of LCR and NSFR 13:00 - 14:00 Lunch and Prayer 14:00 - 16:00 Session 12: GN-6: Guidance Note on Quantitative Measures for Liquidity Risk Management - Continued Principles for Applying Alternative Liquidity Approaches Disclosure Requirements for LCR and NSFR Evaluation of the Market Liquidity of Assets Case Study 16:00 - 16:15 Closing & Certificate Giving Ceremony 16:15 - 16:45 Coffee Break Downloadable Document(s) 1.) Event Session(s) - PDF Format

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: IFSB-1: Guiding Principles of Risk Management for Institutions (other than Insurance Institutions) offering Islamic Financial Services (IIFS); IFSB-2: Capital Adequacy Standard for IIFS; GN-4: Guidance Note in Connection with the IFSB Capital Adequacy Standard: The Determination of Alpha in the Capital Adequacy Ratio (CAR) for IIFS; and IFSB-16: Revised Guidance on Key Elements In The Supervisory Review Process of IIFS 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: Enhance the participants’ understanding of the respective Standards and Guiding Principles thereby facilitating the implementation of these standards in their respective jurisdictions; Assist the participants in the practical application of issues addressed in the particular standards through case studies, hands-on exercises and other interactive tools; and Promote the sharing of experiences among the participants on the implementation of respective IFSB Standards and Guiding Principles. 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