The Islamic Financial Services Board (IFSB) has issued two statements addressing the implications of COVID-19 on certain elements of Islamic banking and Islamic capital markets respectively.
The statement on Islamic banking aims to clarify the treatment of payment moratoriums, the expected credit loss approach and profit-sharing investment accounts in line with shari'ah rules and principles and guidance issued by the IFSB, as well as other international standard-setters.
The Islamic capital markets statement is focused on investor protection, and highlights areas for greater regulatory vigilance and appropriate regulatory responses across IFSB member countries to mitigate the negative economic effects of the COVID-19 pandemic and to ensure continued strong investor protection in the Islamic capital markets.
Both statements are part of the IFSB’s ongoing programme to provide appropriate policy guidance and to serve as a reference tool kit for its members and the Islamic financial services industry when they navigate current economic and regulatory challenges.
The IFSB will continue to assess the implications of the pandemic on Islamic banking, Islamic capital markets and takaful, and will issue further public statements where necessary.
Details:
Read the statements.