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A new draft of the guidelines on capital adequacy for Islamic banks and the risk management of takaful were released by the Islamic Financial Services Board (IFSB). The IFSB is responsible for global guidelines for Islamic finance, despite the fact that national financial regulators determine the way guidelines are implemented. The initial guidelines on capital adequacy were released in December 2005 and were based on Basel II standards. The new stricter Basel III made amendments to the guidelines necessary.

Islamic Financial Services Board (IFSB) intends to make a revision of its capital adequacy guidelines for Islamic financial institutions. The draft for industry feedback is to be released in November. Although IFSB determines the global guidelines for Islamic finance, national financial regulators have the final say regarding how much capital banks must maintain and in what form. The revision is necessary due to the change from Basel II standards to the stricter Basel III standards.

Read more on: http://thepeninsulaqatar.com/latest-news/212596-ifsb-to-revise-capital-a...

The plans of the Islamic Financial Services Board (IFSB) are directed towards revising its capital adequacy guidelines for Islamic financial institutions. The draft is expected to be issued in November in order to receive industry feedback. While the IFSB is responsible for the global guidelines for Islamic finance, national financial regulators determine how much capital banks must maintain and in what form. The original guidelines on capital adequacy were released by the IFSB in December 2005. At that time, they were based on Basel II standards. However, now stricter Basel III standards are used which require corresponding changes in the guidelines.

Read more on: http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=540592...

Islamic Financial Services Board (IFSB) launched an Exposure Draft presenting their proposed principles on liquidity risk management.
This draft is credit-positive for IFIs as it transposes a set of globally recognised best practices for liquidity management into the Shari’ah-compliant banking context.
Liquidity for IFIs remains chained by the absence of a deep and globally integrated Shari"ah-compliant money market, particularly in liquid, short-dated and high-quality issuance.

New Secretary-General Jaseem Ahmed, summit host, Yves Mersch, Gov. Banque centrale du Luxembourg and Faris Sharaf, the chairman of the IFSB governing council and governor of the Central Bank of Jordan were very happy about the good results of the global Islamic financial services industry, considering the challenging environment presented by the recent international financial crisis.
For Islamic finance in particular, the pressing issue is the need to assure that the regulatory and supervisory framework for Islamic finance is consistent with ongoing global regulatory and supervisory reforms. This is particularly important since Islamic finance is rapidly being conventionalized and increasingly integrated into global financial markets.

Professor Rifaat Abdel Karim was appointed in November 2002 as the inaugural secretary general of the Kuala Lumpur-based Islamic Financial Services Board (IFSB), the multilateral prudential and supervisory standard setting organization for the global Islamic financial services industry.
He resigned last year, making place for a new secretary general.
In his statement about the company, he talked about the beginning of the company, about the fact that it took two years to resolve the location where the IFSB should be based and commented on the rumours that there was a political trade-off between Bahrain and Malaysia over the location of IFSB.

The appointment last week by the council of governors of the Islamic Financial Services Board (IFSB) of Jaseem Ahmed as its new secretary-general comes at a time when the prudential and supervisory standard setting organization of the global Islamic finance industry is poised to enter its next stage of development since it was first established in 2002.
Ahmed’s appointment was confirmed at the 17th meeting of the council of governors that was held in Jeddah.

A new global Islamic liquidity management corporation backed by central banks will start issuing Islamic bonds next year to help Islamic banks manage their liquidity.
The Islamic Financial Services Board (IFSB) said in October it would set up the International Islamic Liquidity Management Corporation to issue sharia-compliant instruments.
The liquidity management company will be backed by 11 central banks, including Malaysia, Iran and Turkey and some Gulf states and is expected to have up to $1 billion in authorised capital.

The Islamic Financial Services Board will organize two seminars in December 2010. The two seminars will include:
1) the legal issues in the Islamic financial services industry;
2) the role of Islamic finance in the development of Africa.
The Seminars are open for participation by the IFSB member organisations, as well as the business, legal, and financial community at large.

The Financial Supervisory Service (FSS) Governor Kim Jong-chang sees Islamic finance as a potential new alternative in overcoming the global financial crisis pointing out that reckless distribution of complicated derivative products throughout the global market, detached from the real economy, put the global financial market into crisis.

The annual seminar, held in Japan and Hong Kong in the last two years, is now under way in Seoul, jointly hosted by the Islamic Financial Services Board (IFSB), the Financial Services Commission (FSC) and the FSS.

Kim said the regulator would focus on setting up infrastructure for Islamic finance in the country.