KARACHI, March 28: The State Bank on Friday organised a workshop here on “Impact Study on Islamic Financial Services Board (IFSB) Capital Adequacy Standard” to brief the representatives of the Islamic banking institutions (IBIs) on implementation of IFSB capital adequacy standard.

The bank is in the process of implementing capital adequacy standard issued by IFSB in Pakistan and for the purpose it is carrying out an ‘impact study’. The aim of the study is to identify issues in the implementation of IFSB capital adequacy standard and to finalise a reporting format for collection of data from IBIs.

The implementation of IFSB capital adequacy standard in Pakistan will be another milestone in ensuring proper risk management in IBIs in line with international standards recognising the peculiar risk profile of Islamic banking products and services.

The SBP is one of the founding and full-fledge member of IFSB since its inception and currently SBP Governor Dr Shamshad Akhtar is the chairperson of IFSB for the year 2008.

The State Bank issued risk management guidelines for IBIs earlier this year by adapting the IFSB guiding principles on risk management for institutions offering Islamic financial services.

The IFSB is an international standard-setting organisation that promotes and enhances the soundness and stability of the Islamic financial services industry by issuing global prudential standards and guiding principles broadly defined to include banking, capital markets and insurance sectors.