Latest news with #CIBAFI
Biz Bahrain
21-05-2025
- Business
- Biz Bahrain
CIBAFI Launches In-House Training on Islamic Risk Management for Banque Saudi Fransi
The General Council for Islamic Banks and Financial Institutions (CIBAFI), the global umbrella of Islamic financial institutions, is pleased to announce the launch of an in-house training programme on the Certified Islamic Specialist in Risk Management for senior employees of Banque Saudi Fransi. This programme marks the first collaboration between CIBAFI and Banque Saudi Fransi, representing a significant step toward enhancing professional capabilities in Islamic finance within the Kingdom of Saudi Arabia. The specialized training is designed to deepen participants' understanding of risk management principles from an Islamic finance perspective, equipping them with the tools and techniques to identify, assess, and mitigate risks in alignment with Shariah-compliant practices. It also features practical case studies and applications tailored to the banking environment. On this occasion, Dr. Abdelilah Belatik, Secretary General of CIBAFI, stated: 'In an era marked by uncertainties and transformative shifts in the global financial landscape, empowering professionals with the knowledge and skills to manage risk effectively has never been more critical. Robust risk management is fundamental to ensuring the resilience and long-term sustainability of Islamic financial institutions. CIBAFI is committed to supporting institutions like Banque Saudi Fransi in their engagement to strengthening internal capacity through practical and Shariah-compliant training initiatives.' This initiative reflects CIBAFI's continued commitment to developing human capital and promoting sound risk management practices across the Islamic financial services industry. It forms part of CIBAFI's broader efforts to enhance professional competencies and respond to the evolving needs of the industry through dynamic, high-quality, and context-specific training programmes. About CIBAFI: CIBAFI is an international non-profit organisation founded in 2001 by the Islamic Development Bank (IsDB) and a number of leading Islamic financial institutions. CIBAFI is affiliated with the Organisation of Islamic Cooperation (OIC). With more than 140 members from over 30 jurisdictions all around the world, CIBAFI is recognised as a key piece in the international architecture of Islamic finance.
Biz Bahrain
10-05-2025
- Business
- Biz Bahrain
CIBAFI Submits Recommendations to IFSB on Climate Risk Guidance for Islamic Banks
The General Council for Islamic Banks and Financial Institutions (CIBAFI) submitted its comments to the Islamic Financial Services Board (IFSB) on the Exposure Draft (ED) (GN-11) on the ' Guidance Note on Climate-Related Financial Risks for Institutions Offering Islamic Financial Services (Banking Segment)'. Drawing upon expert insights from its diverse membership spanning more than 30 jurisdictions, CIBAFI's review identifies several areas for enhancement in the ED. Key recommendations include: • Encouraging RSAs to ensure that IIFS clearly demonstrate how responsibilities for climate-related financial risks are embedded within governance structures, including integration into board committee mandates and structured engagement with Shariah boards. • Recommending that IIFS incorporate climate-related objectives into institutional strategies using defined key performance indicators (KPIs) and performance management frameworks to enhance accountability. • Supporting the inclusion of internal, measurable climate-related objectives within ICAAPs/ILAAPs, with disclosures—where material—to reinforce transparency and effective capital and liquidity assessments. • Recommending more detailed guidance on how IIFS can integrate climate-related risks into their stress testing, ICAAP, and ILAAP frameworks to promote consistency and ensure a level playing field in capital and liquidity adequacy assessments across Islamic banks. • Providing more detailed guidance on adapting risk assessment methodologies to the specificities of Islamic contracts, particularly equity-based structures such as musharakah and mudarabah, to ensure alignment with BCBS Principles. • Explicitly addressing reputational and liability risks related to climate claims, including potential greenwashing risks, which may also constitute Shariah governance concerns given the ethical commitments of IIFS. • Expanding guidance on climate-related disruptions to commodity markets, which are critical to Shariah-compliant liquidity management, by recommending contingency planning measures to support effective implementation of BCBS Principle 10 in the IIFS context. 'These recommendations reflect CIBAFI's ongoing commitment to supporting the development of forward-looking regulatory frameworks that strengthen the resilience of Islamic financial institutions in the face of emerging risks. By addressing climate-related financial risks in a manner consistent with Islamic principles, the proposed enhancements aim to promote effective risk governance, greater transparency, and long-term sustainability across the Islamic financial services industry,' said CIBAFI in its statement. The complete detailed comments submitted to IFSB are available on CIBAFI's website: CIBAFI continues to support the Islamic Financial Services Industry through advocacy, global representation, and various initiatives, including specialised publications and comprehensive professional development programmes.
Zawya
08-05-2025
- Business
- Zawya
CIBAFI submits recommendations to IFSB on Climate Risk Guidance for Islamic Banks
Manama, Kingdom of Bahrain |The General Council for Islamic Banks and Financial Institutions (CIBAFI) submitted its comments to the Islamic Financial Services Board (IFSB) on the Exposure Draft (ED) (GN-11) on the " Guidance Note on Climate-Related Financial Risks for Institutions Offering Islamic Financial Services (Banking Segment)". Drawing upon expert insights from its diverse membership spanning more than 30 jurisdictions, CIBAFI's review identifies several areas for enhancement in the ED. Key recommendations include: Encouraging RSAs to ensure that IIFS clearly demonstrate how responsibilities for climate-related financial risks are embedded within governance structures, including integration into board committee mandates and structured engagement with Shariah boards. Recommending that IIFS incorporate climate-related objectives into institutional strategies using defined key performance indicators (KPIs) and performance management frameworks to enhance accountability. Supporting the inclusion of internal, measurable climate-related objectives within ICAAPs/ILAAPs, with disclosures—where material—to reinforce transparency and effective capital and liquidity assessments. Recommending more detailed guidance on how IIFS can integrate climate-related risks into their stress testing, ICAAP, and ILAAP frameworks to promote consistency and ensure a level playing field in capital and liquidity adequacy assessments across Islamic banks. Providing more detailed guidance on adapting risk assessment methodologies to the specificities of Islamic contracts, particularly equity-based structures such as musharakah and mudarabah, to ensure alignment with BCBS Principles. Explicitly addressing reputational and liability risks related to climate claims, including potential greenwashing risks, which may also constitute Shariah governance concerns given the ethical commitments of IIFS. Expanding guidance on climate-related disruptions to commodity markets, which are critical to Shariah-compliant liquidity management, by recommending contingency planning measures to support effective implementation of BCBS Principle 10 in the IIFS context. 'These recommendations reflect CIBAFI's ongoing commitment to supporting the development of forward-looking regulatory frameworks that strengthen the resilience of Islamic financial institutions in the face of emerging risks. By addressing climate-related financial risks in a manner consistent with Islamic principles, the proposed enhancements aim to promote effective risk governance, greater transparency, and long-term sustainability across the Islamic financial services industry,' said CIBAFI in its statement. The complete detailed comments submitted to IFSB are available on CIBAFI's website: CIBAFI continues to support the Islamic Financial Services Industry through advocacy, global representation, and various initiatives, including specialised publications and comprehensive professional development programmes. About the General Council for Islamic Banks and Financial Institutions (CIBAFI) CIBAFI is an international organization established in 2001 and Headquartered in the Kingdom of Bahrain. CIBAFI is affiliated with the Organization of Islamic Cooperation (OIC). CIBAFI represents the Islamic financial services industry globally, defending and promoting its role, consolidating co-operation among its members, and with other institutions with similar interests and objectives, with over 140 members from more than 30 jurisdictions, representing market players, international intergovernmental organizations and professional firms, and industry associations.
Biz Bahrain
01-05-2025
- Business
- Biz Bahrain
CIBAFI Submits Technical Recommendations on IFSB's Takaful Recovery and Resolution Framework
The General Council for Islamic Banks and Financial Institutions (CIBAFI) submitted its comments to the Islamic Financial Services Board (IFSB) on the Exposure Draft (ED) (GN-10) on the 'Guidance Note on Recovery and Resolution for Takaful Undertakings'. Drawing upon expert insights from its diverse membership spanning more than 30 jurisdictions, CIBAFI's technical review identifies several areas for enhancement in the proposed regulatory framework. Key recommendations include: • Expanding the guidance to explicitly address retakaful undertakings, recognizing their potential systemic significance within the Islamic financial ecosystem • Strengthening the principle of independent recovery by removing references to potential public sector support during takaful recovery processes • Enhancing clarity on Point of Non-Viability (PONV) indicators specific to Participants' Risk Funds through additional qualitative and quantitative criteria • Aligning terminology with existing IFSB takaful standards, particularly regarding capital structure references • Providing more detailed guidance on loss allocation principles across segregated takaful fund structures in bail-in scenarios • Clarifying resolution authority procedures for outstanding qard treatment to ensure fair distribution of assets during resolution 'These recommendations reflect CIBAFI's ongoing commitment to supporting the development of robust regulatory frameworks that enhance stability while preserving the unique characteristics of Islamic financial institutions. The proposed enhancements aim to promote greater consistency, transparency, and Shariah compliance in takaful recovery and resolution mechanisms across jurisdictions.', said CIBAFI in its statement. The complete detailed comments submitted to IFSB are available on CIBAFI's website: CIBAFI continues to support the Islamic Financial Services Industry through advocacy, global representation, and various initiatives, including specialised publications and comprehensive professional development programmes.
Biz Bahrain
23-04-2025
- Business
- Biz Bahrain
CIBAFI, in Collaboration with the Central Bank of Bahrain, Launches a Technical Workshop on Climate Action in Islamic Finance
The General Council for Islamic Banks and Financial Institutions (CIBAFI), in collaboration with the Central Bank of Bahrain (CBB), today launched a two-day technical workshop titled 'Advancing Climate Action in Islamic Finance: Practical Insights on GHG Measurement & Reporting', in Manama, Kingdom of Bahrain. Held in response to the growing urgency surrounding climate change and sustainability, the workshop is part of CIBAFI's strategic efforts to build capacity within the Islamic financial services industry (IFSI). It provides participants with practical tools and knowledge to measure and report greenhouse gas (GHG) emissions in alignment with global standards. Dr. Abdelilah Belatik, Secretary General of CIBAFI, reaffirmed the organization's commitment to advancing sustainability in Islamic finance. He highlighted CIBAFI's alignment with the declaration made by Islamic finance infrastructure organizations at COP28, noting that the GHG measurement tool developed by CIBAFI is a key step in helping Islamic Financial Institutions (IFIs) integrate climate action into their operations. He also pointed to growing regulatory expectations in countries where Islamic finance is practiced, and noted that this workshop aims to support banks in meeting these requirements by enhancing their climate risk management. Ms. Zainab Al Owainaty, Director of Administration and Finance at CIBAFI, inaugurated the workshop with opening remarks, welcoming participants and highlighting the pivotal role CIBAFI plays in building capacities to meet evolving sustainability expectations. She emphasized CIBAFI's commitment to providing practical solutions that support the implementation of effective climate strategies across the sector, and the importance of collaboration between financial institutions and regulatory bodies to achieve sustainability goals. She noted that CIBAFI continually strives to offer necessary support to the industry through effective training programs aimed at enhancing awareness of sustainability and its application in daily operations. Following the opening, Mr. Ali Haroon Alaamer, Director of the Capital Markets Supervision Directorate at the Central Bank of Bahrain, delivered a keynote speech highlighting the transformative potential of Islamic finance in addressing climate change. He emphasized the alignment between Islamic finance principles and sustainability, pointing to instruments such as green sukuk, Takaful, and Islamic social finance as powerful tools for climate action. Mr. Alaamer also outlined the CBB's ESG disclosure framework, stressing the importance of regulatory initiatives in advancing environmental stewardship and reinforcing Bahrain's commitment to global sustainability standards. Senior representatives from Islamic banks, financial institutions, regulatory bodies, and other key stakeholders are participating in the workshop. The programme features interactive sessions on GHG accounting and practical exercises using CIBAFI's GHG emissions measurement tool. It provides a valuable platform for industry professionals to enhance their sustainability reporting capabilities while ensuring alignment with Shariah principles. The workshop is being delivered by Dr. Wael Mohamed Aaminou, Managing Partner at Green for South. CIBAFI extends its appreciation to the Central Bank of Bahrain for its valuable support and to all speakers and participants contributing to the success of this important initiative.
