The Islamic Financial Services Board (IFSB) issued an exposure draft Guidance Note (GN-11) on climate-related financial risks for institutions offering Islamic financial services in the banking segment and opened it for public consultation. The draft is designed to support regulatory and supervisory authorities in applying the Basel Committee on Banking Supervision’s principles for the effective management and supervision of climate-related financial risks in the context of Islamic banking. The guidance addresses specific characteristics of Islamic banking that may affect how climate-related risk drivers translate into an institution’s risk profile and provides additional supervisory considerations where those characteristics could lead to different impacts. A public hearing webinar is scheduled for 16 April 2025, with comments due by 8 May 2025.
Islamic Financial Services Board 2025-03-25
Islamic Financial Services Board launches consultation on climate-related financial risk guidance for Islamic banks
The Islamic Financial Services Board (IFSB) released an exposure draft Guidance Note on climate-related financial risks for Islamic banking, aligning with Basel Committee principles. The draft aims to assist regulatory and supervisory authorities in managing these risks, considering the unique aspects of Islamic banking.