IFSB’s draft standards in line with Basel III (By IFN)

Friday 2^nd November 2012

GLOBAL: The Islamic Financial Services Board (IFSB) has released new draft guidelines on capital adequacy for Islamic banks and risk management for Takaful companies.

Its capital adequacy guidelines are in alignment with the upcoming Basel III requirements, allowing Islamic banks to issue Sukuk against their assets in order to meet minimum regulatory capital requirements. The minimum maturity of the Sukuk is recommended at five years and should not have step-up features to encourage the issuers to redeem the papers.

For more see: http://www.islamicfinancenews.com