Regulatory Alerts2025-01-21 | IFPD Circular Letter No. 01Instructions for Profit and Loss Distribution and Pool Management for IBIs
The Islamic Finance Policy Department has issued updated instructions governing profit and loss distribution and pool management for Islamic Banking Institutions. The circular mandates that provisions against non-performing assets, write-offs, and losses on investment sales be charged to their respective pools, with any provision reversals or investment value benefits allocated back to the same pool. Additionally, the directive removes the prior restriction excluding fixed assets from these calculations while preserving all other existing circular provisions.
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