Islamic Financial Services Board (IFSB) preps liquidity guidance for Islamic banks, warns of risks – Reuters

ifsbThe Kuala Lumpur-based Islamic Financial Services Board (IFSB) plans to issue a guidance note for Islamic banks on the adoption of liquidity standards, warning lenders lack high-quality assets to meet new regulatory requirements under Basel III.

The IFSB sets global guidelines for Islamic finance, although national financial regulators have the final say on their implementation and enforcement.

The Islamic body aims to issue the guidance note in 2014, having already issued a liquidity guideline in March of last year, according to an IFSB report released on Tuesday.

A separate guideline on capital adequacy, currently under revision, will be issued at the end of 2013.

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