QFCRA proposes updates to Islamic banking framework; to be effective from July 1, 2024

QFCRA proposes updates to Islamic banking framework; to be effective from July 1, 2024

The Qatar Financial Centre Regulatory Authority (QFCRA) is proposing to update its prudential Islamic banking regime as part of ongoing work programme to implement the IFSB (Islamic Financial Services Board) framework.The QFCRA seeks amendments to its extant Islamic Banking Business Prudential Rules 2015 (IBANK) framework to include the IFSB approach for credit risk and BCBS (Basel Committee on Banking Supervision) counterparty credit risk; new norms related to credit risk management, prudential treatment for equity investment in funds, categorisation of problem assets and provisioning, and large exposures framework.The updated IBANK rules are expected to be in place on July 1, 2024.It is seeking to assess the impact of these proposals and these revisions support the QFCRA's commitment to the maintenance of high global regulatory standards for conventional and Islamic financial services and the continued development of the QFC as a leading financial and business centre in the Middle East.The QFCRA has proposed to update capital adequacy requirements in relation to credit risk and market risk in respect of Shariah compliant financing and investment instruments such as profit-sharing investment accounts and exposures relating to investments in sukuk, securitisations and real estate transactions.Proposing changes to credit risk management framework, the QFCRA seeks to