Kuala Lumpur, 30 January 2019 – The Islamic Financial Services Board (IFSB) is pleased to announce the release of the French versions of two IFSB Standards on Conduct of Business (IFSB-9), Liquidity Risk Management (IFSB-12), and a Guidance Note on Quantitative Measures for Liquidity Risk Management (GN-6).
Secretary-General of the IFSB, Dr. Bello Lawal Danbatta said, “The French versions of the IFSB Standards, Guidance and Technical Notes aim to cater to the increasing interest and recognition of Islamic finance among the French-speaking jurisdictions around the world. The two newly translated Standards and one Guidance Note is another milestone on the path towards increasing awareness about the IFSB Standards, Guidance and Technical Notes among the key stakeholders from these jurisdictions, which hopefully will result in improving the implementation rates of the IFSB Standards in member countries.” He added, “that the translation of these three documents reflects the continued commitment of the IFSB to its members, and is part of the IFSB’s Strategic Key Result Area 2 (SKRA 2) on the Facilitating the Implementation of Prudential Standards and Capacity Development under the IFSB’s Strategic Performance Plan (SPP) 2016-2018”.
All IFSB Standards, Guidance and Technical Notes are issued in both English and Arabic languages. The IFSB is progressively translating the Standards, Guidance and Technical Notes into French, with a further three standards planned to be translated in 2019. This translation initiative complements the other implementation activities including the country and regional workshops, technical assistance, policy advice, and the IFSB E-learning Portal.
Details of the newly translated documents are as follows:
IFSB-12: Guiding Principles on Liquidity Risk Management for Institutions offering Islamic Financial Services [excluding Islamic Insurance (Takaful) Institutions and Islamic Collective Investment Schemes]
The IFSB-12 delineates a set of guiding principles for the robust management of liquidity risk by institutions offering Islamic financial services (IIFS) and their vigorous supervision and monitoring by supervisory authorities, taking into consideration the specificities of the IIFS, while complementing relevant international standards and best practices. The document outlines 23 Guiding Principles comprising one general principle, 14 Guiding Principles for the IIFS and 8 Guiding Principles for supervisory authorities. These principles aim to provide guidance on effective management and supervision of liquidity risk.
IFSB-9: Conduct of Business for Institutions offering Islamic Financial Services
IFSB-9 aims to promote a climate of confidence and a supportive environment in the business of the Islamic financial services industry by upholding and strengthening the relevant moral, social and religious values in business practices.
GN-6: Guidance Note on Quantitative Measures for Liquidity Risk Management in Institutions Offering Islamic Financial Services [Excluding Islamic Insurance (Takaful) Institutions and Islamic Collective Investment Schemes]
GN-6 aims to complement global liquidity standards such as Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) as well as other developments on liquidity risk management for the Islamic financial services industry (IFSI). It will help the regulatory and supervisory authorities to provide a level-playing field to the IIFS in the application of liquidity standards vis-a-vis their conventional counterparts, and thus will promote the sound management of liquidity risk in IIFS.
The IFSB-9, IFSB-12 and GN-6 documents in English, Arabic and French are available for download on the IFSB website www.ifsb.org.