One tool we use to help maintain the safety and soundness of banks is supervisory guidance, which can point out areas requiring additional monitoring, suggest ways in which banks can improve risk management, and remind bankers that they should continue to exercise discipline in their lending activities to ensure that they are accounting for all their risks.
The CBB benefited from its successful experience in the field of Islamic banking, supporting the successful implementation of sound regulatory framework for takaful businesses. There are several common areas shared by takaful and Islamic banking. In addition, the CBB identified the need by Islamic banks to transact with takaful firms to meet their insurance requirements.