5th October 2023, Manama, Kingdom of
Bahrain | Aligned with its role as an advocate of the Islamic financial services
industry (IFSI), the General Council for Islamic Banks and Financial
Institutions (CIBAFI), the global umbrella of Islamic financial institutions,
announced that it has submitted its comments to the
Basel Committee regarding its Consultative Document on “Revisions to the Core
principles for effective banking supervision ("Core Principles").
The CD has been issued on 6th July
2023 and was open for public consultation until 6th October 2023
In its comments, CIBAFI thanked the BCBS
for giving the opportunity to the IFSI to comment on the CD and provided
collective feedback of its member banks from over 34 jurisdictions. CIBAFI’s comments
comprised the following key points.
updated "Introduction to Core Principles" improves comprehension of
proportionality. However, banks still express concerns about the way proportionality
is applied, particularly as the principles expand. Therefore, it is beneficial
for the BCBS to offer more guidance to regulators on effective proportionality
needs to evolve alongside emerging trends and new banking models like Neo Banks
and Fully Digital Banks. It is advisable to conduct additional research to
uncover specific considerations for applying these principles in the context of
these innovative banking models.
Full comments submitted to the BCBS are
available on CIBAFI’s website: http://www.cibafi.org.
In addition to Advocacy of Islamic finance
Values and related Policies & Regulations, CIBAFI continues to support the IFSI
through various activities and initiatives. These include providing industry
stakeholders with a platform to discuss emerging issues, representing the
industry at major global financial events, and sharing knowledge through
specialized publications and comprehensive training programmes.