2.1This Standard applies to all licensed banks that conduct all of their activities in accordance with the provisions of Islamic Shari’ah (“Islamic Banks” or “IBs). IBs established in the UAE with Group relationships, including subsidiaries, Affiliates, or international branches, must ensure that the Standard is adhered to on a solo and a Group-wide basis.
2.2A licensed bank that fully owns an Islamic Bank must adhere to the requirements set out within this Standard at the level of the subsidiary and consolidate these requirements into its overall risk management framework.
2.3Licensed banks that conduct part of their activities in accordance with the provisions of Islamic Shari’ah (“Banks housing an Islamic Window”) may refer to this Standard to familiarise themselves with the requirements in order to be aware of the liquidity risks arising from Shari’ah compliant activities and businesses.
2.4Banks housing an Islamic Window must comply with the liquidity requirements set by the Central Bank’s Regulations and Guidance re liquidity at banks. For monitoring purposes only, banks housing an Islamic Window are required to report stand-alone quantitative measures as set-out in this Standard without having to comply with the ratios set by this Standard.