Awareness Programme

The COVID-19 crisis has resulted in an extraordinary supply and demand shock to the global economy with far reaching consequences, including implications for the financial markets and insurance sectors. The uncertainties resulting from COVID-19 are also likely to remain for the foreseeable future. The initial impact of the COVID-19 outbreak on the capital markets was acute. It resulted in sharp price adjustments across both the fixed-income and equity markets, capital outflows and a liquidity crunch across global financial markets. As the pandemic continues to evolve, it also presents both immediate and future challenges for the rest of the financial system, including takaful and retakaful institutions, among others. While the policy responses to address the immediate effects of COVID-19 on the financial system has been swift, further assessment is needed on how policies should continue to evolve to preserve financial stability and address the potential medium- and longer-term effects of COVID-19, and in particular, whether there are any Islamic finance specific risks, challenges or opportunities for players in the Islamic capital markets and the takaful sector. This executive programme aims to try and answer some of these crucial questions and to encourage discussion, debate and sharing of country challenges, experiences and policy approaches, focusing particularly on the Islamic capital market and takaful sectors. The objectives of this programme are: to discuss the impact of COVID-19 on the Islamic capital markets and its implications for the stability and resilience of the financial system to discuss the implications of COVID-19 for takaful institutions and identify specific risk factors that might arise in relation to specificities of Islamic finance to discuss the areas where regulatory responses may be needed to address the impact of COVID-19 to ensure the resilience and stability of takaful institutions and Islamic capital markets.   *****This Executive Programme is free for all categories of IFSB members. For Non-Members a participation fee of USD100 will be applicable*****   Event Snapshots   Programme - Event Session(s) Date Time Topics Day 1 20/10/2020 14:30 - 14:40 Opening Remarks 14:40 - 16:05 Session 1: Implications of COVID-19 on Islamic Capital Markets What has been the global impact of COVID-19 on Islamic capital markets? How might it affect sovereign and corporate sukuk issuances? What are the implications for stability and resilience of Islamic capital markets? What are the implications for liquidity management for the Shar??ah-compliant asset management industry? What has been the impact of volatility in equity markets for Shar??ah screening, particularly on financial screening ratios? What are the various policy actions and regulatory measures that have been taken by regulators to mitigate the impact of COVID-19 on Islamic capital market stability and to protect investors? 16:05 - 17:30 Session 2: Covid-19 and Impact on Takaful and Retakaful Institutions What has been the implications of COVID-19 on the performance of takaful and retakaful Institutions? What are the operational, market and credit risk exposures for takaful and retakaful Institutions due to COVID-19? What are the appropriate risk management measures for takaful and retakaful Institutions in responding to COVID-19 implications? What are the regulatory treatments that have been undertaken by regulatory and supervisory authorities to ensure takafulsector stability in the short-term? What are potential vulnerabilities that might arise in the medium or long-term for takaful and retakaful institutions as a result of COVID-19 and how might regulatory policies address these?   Downloadable Document(s) Event Session(s) - PDF Format

The COVID-19-induced global recession has been an unprecedented and unique crisis for the financial system, as a completely exogenous crisis originating from outside of the financial system. The unique crisis also presented the need for unique policy responses which makes it pertinent to examine how the financial system has responded during the crisis to manage it, and how it might move forward after the crisis to ensure economic and financial system recovery, stability, resilience and growth. It is also imperative to look at the gaps in the current regulatory system that become apparent during the crisis and which requires attention by standard-setters and regulators going forward. To identify the common gaps and shortcomings of the financial regulatory frameworks and approaches in preventing the financial industry from a crisis To discuss and elaborate policy measures and actions that need to be taken by regulators in order to maintain the financial system stability and create resilience of the financial industry during a crisis. To understand steps to be taken in sustaining both financial institutions and the economic development of the country post-crisis   Event Snapshots   Programme - Event Session(s) Date Time Topics Day 1 22/10/2020 14:30 - 14:40 Opening Remarks 14:40 - 15:25 Measures to Create Resilience for the Islamic Finance Industry During and Post-Crisis: Regulator’s PerspectivesAt the end of the session, participants will be able to identify best practices and steps that need to be taken in enhancing regulatory frameworksfor crisis management in protecting the financial industry amid crisis. What enhancements in the regulatory frameworks may be considered for financial regulation to effectively address crises? Are the current regulatory regimes for crisis management adequately equipped to handle severe stress scenarios and non-economic sources of crisis? How adaptable is the regulatory framework to new or unique crises? Are there appropriate coordination and integrative mechanisms among regulators for crisis management? 15:25 - 15:30 Break 15:30 - 16:15 Session 2: Regulators’ Responses to CrisisAt the end of the session, the participants would be able to understand what policy measures and actions need to be taken by regulators in order to ensure economic and financial system stability and create resilience of the financial industry during a crisis. What are the regulatory policy measures and programs/actions adopted by the regulatory authorities to address Covid-19 impacts on the Islamic financial  sector? How have regulators dealt with crisis preparedness to ensure the safety-net of Islamic financial institutions? What are the priorities for regulatory authorities in managing the soundness of Islamic financial institutions during the crisis? Are there material differences between the Islamic banking sector and its conventional counterparts in dealing with and recovering from the crisis? 16:15 - 16:20 Break 16:20 - 17:05 Session 3: Sustainability of Financial Institutions Post Crisis At the end of the session, the participants would be able to understand steps to be taken in sustaining both financial institutions and the economic development of the country post crisis. What are the strategies for ensuring continued sustainability of Islamic financial institutions post crisis? What is the way forward for Islamic financial institutions post crisis in the midst of Banking 4.0? What are the required actions for Islamic financial institutions to channel back their liquidity to the real sector as part of the economic recovery measures of the country? What are the roles of Islamic social finance to sustain economic recovery in line with the Sustainable Development Goals (SDGs)?   Downloadable Document(s) Event Session(s) - PDF Format