About Proportionality as Principles Expands in Banking
CIBAFI Offers Basel Committee some Insights
By: Mohammed A. Abu
The Manama, Kingdom of Bahrain based General Council for Islamic Financial Institutions(CIBAFI) has formally Submitted Comments to the Switzerland based Basel Committee on Banking Supervision (BCB regarding its Consultative Document on “Revisions to the Core principles for effective banking supervision (“Core Principles”) an official statement disclosed in Manama, Thursday.
CIBAFI noted according to the Press Release, that even though the updated “Introduction to Core Principles” improves comprehension of proportionality, banks still however, express concerns about the way proportionality is applied, particularly as the principles expand.
Proportionality, CIBAFI also noted, 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.
The CIBAFI release signed by its Secretary General Abdellah Belatik said, “We remain at your disposal should you need any further clarifications”, adding, “The General Council for Islamic Banks and Financial Institutions takes this opportunity to renew to the Basel Committee on Banking Supervision (BCBS) the assurances of its highest respect and consideration”.
CIBAFI is an international body representing Islamic financial institutions globally, who offer financial services and products complying with Islamic rules and principles (Shariah).
CIBAFI acts as the voice of the Islamic finance industry, and our members comprise more than 130 Islamic banks and non-bank financial institutions, both large and small, from 34 jurisdictions
