Financial Islam - Islamic Finance
  • Home
  • News
  • Islamic Economics
    • The ownership of wealth
    • The Islamic economic system
    • Prohibition of Riba, Maysir and Gharar
    • Financial intermediation
    • Shareholding in Islam
    • Islamic Commercial contracts >
      • Valid transactions
      • Loans and debts in the Sharia'h
      • Mudarabah
      • Musharakah
      • Diminishing Musharakah
      • Murabahah
      • Salam
      • Istisna'a
      • Ijarah
      • Wakalah
      • Other contracts
  • Islamic Banking Operations
    • Investment and transactions
    • Deposits
    • Islamic credit cards
    • Fee-based services
    • Letter of Credit
    • Bank Guarantee
    • Modes of financing >
      • Ijarah financing
      • Musharakah and Mudarabah certificates
      • Diminishing Musharakah
      • Replacing interest-based lending
  • Regulation and Supervision
    • The Islamic Development Bank
    • Shari’ah Boards
    • Islamic accounting
    • Financial statements analysis
    • The Organising group
    • Relationship with central banks
    • Operations within the conventional system
  • Capital Market Operations
    • Islamic Unit Trusts
    • Islamic Fund Structures
    • Investment screening
    • Islamic Market Indexes
    • Islamic ETF
    • Venture Capital
    • Foreign exchange
  • Securisation and Sukuk
    • Sukuk structures
    • Controversy
    • Indexation of financial obligations
    • Risks underlying Sukuk
  • Takaful - Islamic Insurance
    • Takaful Agreements
    • Takaful models
    • Areas of Takaful
    • General insurance
    • Life insurance
    • Reinsurance
    • Corporate Governance
  • Video Zone
  • Events Agenda 2016
    • Events Agenda 2011
    • Events Agenda 2010
    • Events Agenda 2015 >
      • Events Agenda 2012
      • Events Agenda 2013
      • Events Agenda 2014
  • Careers
  • Education and Training
  • Glossary
  • Contact

Limited clarity in regulatory framework a challenge for takaful sector, says Fitch

5/8/2010

0 Comments

 
Fitch Ratings has today commented that amidst the robust growth of the takaful industry in recent years, one key challenge for takaful players is the limited clarity in the regulatory and supervisory framework for the sector.
 
Nonetheless, with the introduction of guiding principles and standards for the Islamic financial services industry by the Islamic Financial Services Board (IFSB), a Malaysia-based international standard-setting organisation, the situation is gradually improving.

To date, the IFSB has issued twelve standards, guiding principles and technical notes for the Islamic financial services industry, which include risk management, capital adequacy, corporate governance, and supervisory review process. Furthermore, it has recently released an Exposure Draft on the Solvency of takaful Firms, addressing this principal area of concern for many regulators worldwide and takaful operators alike.

"The guiding principles put forth in the Exposure Draft on Solvency of takaful Firms are generally in line with Fitch's takaful rating Methodology," says Wan Siew Wai, Director in Fitch's Insurance team. In assessing the financial strength of a (re)takaful undertaking, the agency considers that it is very important to understand the sources of the takaful firm's financial strength, and will therefore seek to gain an understanding of the financial strength at the individual takaful fund; takaful operator; and combined firm levels.

From a credit perspective, Fitch views that IFSB's work is of critical importance in shaping the regulatory landscape of the takaful industry. "As the takaful industry continues to evolve, the agency will continue to monitor market and regulatory developments and will review its rating methodology on a regular basis to ensure its relevance," adds Mr. Wan

source : AMEinfo 
 
ShareThis
0 Comments



Leave a Reply.

    Picture

    RSS Feed


    Topics

    All
    Aaoifi
    Accounting
    Afghanistan
    Algeria
    Asset Management
    Australia
    Azerbaijan
    Bahrain
    Bangladesh
    Bermuda
    Brazil
    Brunei
    Cambodia
    Canada
    China
    Commodities
    Consulting
    Credit Card
    Crisis
    Croatia
    Currencies
    Debt
    Derivatives
    Egypt
    Equities
    France
    Germany
    Ghana
    Hong Kong
    Ifsb
    Iifm
    India
    Indonesia
    Ipo
    Iran
    Iraq
    Ireland
    Isda
    Islamic Development Bank
    Italy
    Japan
    Jordan
    Kazakhstan
    Kenya
    Kuwait
    Kyrgyzstan
    Lebanon
    Libya
    Liquidity
    Luxembourg
    Malaysia
    Maldives
    Malta
    Mauritius
    Mexico
    Microfinance
    Morocco
    Nigeria
    Oman
    Pakistan
    Palestine
    Philippines
    Qatar
    Rating
    Real Estate
    Risk
    Russia
    Saudi Arabia
    Senegal
    Shariah Board
    Singapore
    South Africa
    South Korea
    Spain
    Sri Lanka
    Sudan
    Sukuk
    Swaziland
    Switzerland
    Syria
    Takaful
    Tanzania
    Thailand
    Tunisia
    Turkey
    Uae
    Uk
    Usa
    Wealth Management
    Yemen

Powered by
✕