CBK-IIFM Seminar on Islamic Hedging, Liquidity Management and Sukuk Hosted by Central Bank of Kuwait

Past Event

  • Wednesday, 10th October 2018
  • 07:30 AM - 02:30 PM
  • Al Thuraya Ballroom, Jw Marriot Hotel, Al Shuhada Street, Safat, Kuwait
  • Registration are closed for this event.

Program Details

8:30 AM - 9:00 AM
REGISTRATION AND MORNING COFFEE

9:00 AM - 9:05 AM
OPENING OF THE SEMINAR WITH RECITATION FROM THE HOLY QURAN

9:05 AM - 9:15 AM
WELCOME ADDRESS

Waleed Al Awadhi, Executive Director, Supervision Sector, Central Bank of Kuwait


9:15 AM - 9:30 AM
OPENING ADDRESS

Khalid Hamad Abdulrahman Hamad, Executive Director of Banking Supervision, Central Bank of Bahrain and Chairman of IIFM


9:30 AM - 10:00 AM
PRESENTATION: INTRODUCTION TO IIFM AND ITS ISLAMIC FINANCIAL DOCUMENTATION AND PRODUCT STANDARDS

– About IIFM and other Standard-Setting Bodies for Islamic Finance
– Benefits of IIFM Standards to Financial Institutions and Regulators
– IIFM Published Standards on Islamic Hedging and Liquidity Management
– Implementation of IIFM Standards
– IIFM Upcoming Standards on Trade Finance and Sukuk

Presenter:

Ijlal Ahmed Alvi, Chief Executive Officer, IIFM


10:00 AM - 11:00 AM
SESSION 1: RISK MANAGEMENT AND REGULATIONS IN ISLAMIC BANKS

Overview: The purpose of the session is to discuss the risk management at the Islamic banks and the need forShariah-compliant hedging techniques. It will cover the key risks faced by the Islamic banks and their risk management and governance. The session will also cover the supervisory perspective on the usage of such Shariah-compliant hedging techniques by the Islamic banks and regulatory requirements set out by the supervisory authority.

– Key risks such as credit risk, counterparty, operational including legal, rate of return risk and foreign exchange risk
– Aggregated risk analysis and risk management
– Risk management governance and tools
– Supervisory monitoring and regulatory capital of Shariah-compliant hedging techniques
– Supervisory review process for risk management

Moderator:

Abdullah Al-Mehri, Manager, Off-Site Supervision, Central Bank of Kuwait

Speakers:

Dr. Jamshaid Anwar Chattha, Chief Banking Researcher, Islamic Finance Expert, Off-Site Supervision, Central Bank of Kuwait

Mohamed Omarah, Head of Legal and Governance for Middle East & Africa (MEA), Crédit Agricole CIB, Dubai

Majed Fanous, Chief Risk Officer & General Manager-Risk Management, Boubyan Bank, Kuwait


11:00 AM - 11:15 AM
REFRESHMENT BREAK

11:15 AM - 12:25 AM
SESSION 2: ISLAMIC HEDGING STANDARD DOCUMENTATION AND PRODUCTS

– Introduction to Islamic Hedging and Market Requirements
– Key Technical Aspects (legal, operational & Shariah) of the ISDA/IIFM Tahawwut Master Agreement
– Key Technical Aspects of the ISDA/IIFM Islamic Hedging Product Confirmations
   > Islamic Profit Rate Swap
   > Islamic Cross Currency Swap
   > Islamic FX Forward
– Purpose and Key Technical Aspects of the ISDA/IIFM Islamic Credit Support Deed for Cash Collateral (Variation Margin)
– Legal Opinions on Tahawwut Master Agreement
– Regulatory & Law Reforms in Islamic Jurisdictions

Moderator:

Ahsan Ali, Managing Director and Head of Islamic Origination, Standard Chartered Bank, Dubai

Speakers:

Ijlal Ahmed Alvi, Chief Executive Officer, IIFM

Dr. Peter Werner, Senior Counsel, International Swaps & Derivatives Association (ISDA), London

Habib Motani, Partner, Clifford Chance LLP, London


12:25 AM - 1:30 PM
PRAYER AND LUNCH BREAK

1:30 PM - 2:30 PM
SESSION 3: GLOBAL SUKUK MARKET TRENDS AND DEVELOPMENTS

– Overview  of the Global Sukuk Market – Key Findings of the IIFM Sukuk Report 2018
   > Domestic and International Issuances
   > Types of Issuers
   > Structural Preferences
– Innovation in Sukuk (SRI, Green and Gold Sukuk)
– Development of Corporate Sukuk Market in Sukuk Issuing Countries
– Challenges in Issuing Sukuk from Market, Legal and Regulatory Perspective
– Sukuk Default and Restructuring – Lessons Learnt

Moderator:

Abdullah Al-Haddad, Chief Investment Banking Officer, KFH Capital Investment Company, Kuwait

Speakers:

Ijlal Ahmed Alvi, Chief Executive Officer, IIFM

Ahsan Ali, Managing Director and Head of Islamic Origination, Standard Chartered Bank, Dubai

Xuan Jin, Senior Associate, White & Case LLP, Dubai


2:30 PM - 3:30 PM
SESSION 4: ISLAMIC LIQUIDITY MANAGEMENT STANDARDS

1) Islamic Alternative to Repo – IIFM Rahn based Liquidity Management Standard
– Introduction to Collateralized Murabahah & Market Requirements
– Key Technical Aspects (legal, operational & Shariah) of the IIFM Master Collateralized Murabahah Agreement
– Use by Regulators to provide Liquidity Management tool

2) IIFM Unrestricted Wakalah Standard
– Key Technical Aspects (legal, operational & Shariah) of the IIFM Inter-Bank Unrestricted Master Investment Wakalah Agreement and Operational Guidance Memorandum
– Accounting Assessment for IIFM Unrestricted Wakalah Standard
– Benefit to Regulators in providing Shariah compliant liquidity management solutions

Moderator:

Moinuddin Malim, Managing Partner, Alternative International Management Services (AIMS), Dubai

Speakers:

Ismail Dadabhoy, Advisor, IIFM

Lilian Le Falher, Executive Manager, Head of Treasury and Capital Markets & Corporate Banking Group, Kuwait Finance House (Bahrain)

Habib Motani, Partner, Clifford Chance LLP, London


3:30 PM
END OF SEMINAR