Regulatory Alerts2021-12-02
Added · Updated
Risk Management Framework for Shari’ah Compliant Banking
The Saudi Central Bank (SAMA) issued this framework to establish minimum regulatory requirements for risk management in banks conducting Shari’ah compliant banking activities. The document mandates that banks implement comprehensive processes for identifying, measuring, and controlling market and operational risks while ensuring strict adherence to Shari’ah principles. It outlines specific governance responsibilities for boards and senior management, requiring robust oversight, independent risk functions, and effective reporting mechanisms to protect depositors and maintain financial stability.
Topics
islamic-finance
governance
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