Islamic banks face outdated property rules: industry body | Reuters

Islamic banks face outdated property rules: industry body | Reuters:

Regulators overseeing Islamic banking must revise guidance on real estate exposures to align with the post-financial crisis capital rules of Basel III, a global industry body said on Sunday.

The Bahrain-based General Council for Islamic Banks and Financial Institutions (CIBAFI) said treatment of real estate across Islamic finance jurisdictions still reflected Basel II or pre-reform Basel III rules.

But a revised version of Basel III, finalised in December 2017, introduced additional requirements including concentration limits and independent asset valuations.