The two separate 3-day Workshops intend to be Train the Trainer Programme and are tailored for the Regulatory and Supervisory Authorities for the Islamic Capital Market and Takāful sectors. The Workshop for Islamic Capital Market Sector will cover the following sessions and IFSB Standards: Introduction to Islamic Capital Market IFSB-6 : Governance for Islamic Collective Investment Schemes (ICIS) IFSB-10 : Sharī`ah Governance Systems IFSB-15 : Revised Capital Adequacy – Sukūk and Securitisation Rountable on Disclosure Requirements for Islamic Capital Market Products (ED-19) Meanwhile, the Workshop for Takāful Sector will cover the following sessions and IFSB Standards: Introduction to Takāful, Models and Features IFSB-8 : Guiding Principles on Governance for Takāful Undertakings IFSB-11 : Standard on Solvency Requirements for Takāful Undertakings IFSB-14 : Risk Management for Takāful Undertakings IFSB-18 : Guiding Principles for Retakāful (Islamic Reinsurance) Experience Sharing on Regulating Takāful & Retakāful Sector in Various Jurisdictions Overall, these Workshops aim 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 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 regulators and supervisors on the implementation of respective IFSB Standards and Guiding Principles. Participation in these Workshops are by INVITATION only. For queries, please contact the IFSB Secretariat, Mr. Hamizi Hamzah at [email protected].

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