QFC Regulatory Authority Proposed Islamic Banking Business Prudential Rules 2015
PROPOSED ISLAMIC BANKING BUSINESS PRUDENTIAL RULES 2015
Invitation to comment
The QFC Regulatory Authority (“Regulatory Authority”) seeks public comment on the proposed Islamic Banking Business Prudential Rules 2015 (“the draft Rules”) (see Attachment 1). The proposed rules apply to authorised firms which undertake the activities of accepting deposits, providing credit and dealing in investments as principal. These activities are undertaken through managing Shari’a-compliant sources of funding (other than restricted Profit Sharing Investment Accounts), and financing and holding investments made under Shari’a-compliant transactions. Firms conducting these activities may be an Islamic bank or an Islamic investment dealer and are collectively referred to as Islamic banking business firms in the draft Rules.
These proposals significantly upgrade the prudential framework for Islamic banking business firms and have been undertaken in support of the State of Qatar’s Strategic Plan for Financial Sector Regulation 2013-2016 which identifies objectives to develop Qatar as an Islamic finance centre.
As a result of these proposals, there are a limited set of consequential amendment proposals to other Regulatory Authority rules. The Regulatory Authority is therefore also seeking public comment on the Islamic Banking Business Prudential (Consequential) and Miscellaneous Amendments Rules 2015 (see Attachment 2).
5.3 In alignment with IFSB standards, the Regulatory Authority is proposing to adopt the standardised approach for credit risk assessment. This requires an Islamic banking business firm to establish and implement policies to identify, measure, evaluate, manage and control or mitigate credit risk and to calculate its credit risk capital requirement in accordance with prescribed risk-weights.
Click here to view PDF Version of Consultation Paper 2015/2.
Click here to view Word Version of Consultation Paper 2015/2.
Please submit your comments by 1 November 2015 including contact details for the organisation represented, to:
Mr Shaun Swan
Policy and Legislative Counsel Department
QFC Regulatory Authority
PO Box 22989
Or email to: ConsultationPapers@qfcra.com
These proposals are relevant to all authorised firms as well as prospective firms seeking approval for authorisation.
This Consultation Paper contains the following appendices:
Attachment 1: Proposed Islamic Banking Business Prudential Rules 2015
Attachment 2: Proposed Islamic Banking Business Prudential (Consequential) and Miscellaneous Amendments Rules 2015
In accordance with its statutory objectives, it is the Regulatory Authority’s policy to make all responses to formal consultation available to the public. Respondents who would like their submission, or part of their submission, to remain confidential should provide this information marked as confidential. A standard confidentiality statement in an email message will not be regarded as a request for non-disclosure.