The Bank of England has today opened the Alternative Liquidity Facility (ALF), which has taken deposits from participating UK-based Islamic banks for the first time.
Just this month the Bank of England’s Prudential Regulation Authority (PRA) published a consultation paper on the implementation of Basel III standards. The PRA are seeking to enhance bank’s regulatory obligations regarding minimum capital ratios and liquid asset holdings.
ABI and GBIC note that the current regulatory approach to non-performing exposures was developed under completely different circumstances and should, therefore, be reconsidered in light of the pandemic emergency.