IFSB releases draft standards on capital adequacy, takaful
A new draft of the guidelines on capital adequacy for Islamic banks and the risk management of takaful were released by the Islamic Financial Services Board (IFSB). The IFSB is responsible for global guidelines for Islamic finance, despite the fact that national financial regulators determine the way guidelines are implemented. The initial guidelines on capital adequacy were released in December 2005 and were based on Basel II standards. The new stricter Basel III made amendments to the guidelines necessary.