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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.
Perth Now
09-05-2025
- Health
- Perth Now
Workers ‘failed' by compensation scheme
Workplace health and safety laws are failing to prevent psychological injuries or treat sufferers quickly, the NSW government has claimed, following the release of plans for a sweeping overhaul of workers compensation. Formal consultation began in March following a commitment by the state government to modernise the state's workplace compensation system and ensure sustainability, with an Exposure Draft released on Friday. Industrial Relations Minister Sophie Cotsis said the Labor state government was committed to 'strengthening a culture of prevention, early intervention, and effective return to work through a series of reforms'. 'These include major reforms to SafeWork NSW, such as expanding the psychosocial inspectorate, and industrial relations reforms that establish a 'stop bullying' jurisdiction,' Ms Cotsis said on Friday. 'Additionally, we have amended the iCare Act to include a principal objective focused on promoting early and appropriate treatment and care for injury and illness. Customer Service Minister Jihad Dib said the current workers compensation system was designed to support people who suffer physical injury. NewsWire / Max Mason-Hubers Credit: News Corp Australia Industrial Relations Minister Sophie Cotsis said the Labor state government was committed to 'strengthening a culture of prevention'. NewsWire / John Appleyard Credit: News Corp Australia 'This aims to optimise recovery, support return to work and daily activities, and ensure a sustainable compensation system.' Customer Service Minister Jihad Dib said the current workers compensation system was designed to support people who suffer physical injury at work, but 'doesn't do enough to help people experiencing psychological injury to recover and return to work'. Under the current system, only 50 per cent of workers with a psychological injury are returning to work within a year. The state government claimed the system currently spends seven times more on keeping an injured worker away from the workplace that it does on does on 'getting them healthy and back on the job'. Insurance premiums are also tipped to rise by 36 per cent over the next three years. The NSW government will not adopt a final position on the proposed reform until after community feedback on the Exposure Draft, which it says is the 'starting point for the next phase of conversations and to highlight the scale of the challenges the scheme is facing'.
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.
