Regulatory Alerts2022-06-06
Law No. 46 of 2012 Amending Law No. 1 of 2005 Regarding Banks and Adding a Special Chapter for Islamic Banking
The national banking regulator issued this legislation to amend the foundational 2002 Banking Law and integrate a comprehensive regulatory framework for Islamic banking. The law mandates strict capital adequacy, liquidity, and corporate governance standards for all commercial banks while introducing Sharia-compliant financial products and profit-sharing mechanisms. It further empowers the central bank with enhanced supervisory authorities, including mandatory reporting, inspection rights, and penalty imposition to ensure systemic financial stability.
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