The Director, Banking Supervision Department (BSD), Alhaji Ahmed Abdullahi, has disclosed that Central Bank of Nigeria (CBN) has adopted the Islamic Financial Services Board (IFSB) Standards 4, 15 and 16 on disclosure requirements, capital adequacy computation and supervisory review process for non-interest banking in Nigeria.
He made this known during a workshop with stakeholders from non-interest banks and other nancial institutions, which held at the CBN International Training Institute, Abuja.
With this development, he hoped that the implementation of the standard would strengthen non-interest banks and other financial institutions’ capital adequacy and risk management practices.
The CBN has issued a number of circulars and guidelines for the regulation and supervision of Non- Interest Financial Institutions (NIFIs) in line with international best practices aimed at promoting sound financial system in the country.
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This has created an enabling environment for the Islamic banking model to thrive and grow in Nigeria from hitherto two participants in 2011 to seven in 2019.
Mr. Sunday Thompson who represented the Director, Banking Supervision Department, also disclosed that CBN had issued six Guidance Notes and Capital Adequacy reporting template in tandem the unique propositions of the Islamic Financial System, based on the underlying Shariah principles that have universal applications, which advocate the prevention of harm or attainment of benets as all Islamic finance must be ethical and fair.
The IFSB is the international standard-setting body established to regulate and supervise agencies that have vested interest in non- interest banking services, as well as ensuring the soundness and stability of the Islamic financial services industry, which dened broadly to include banking and capital market.