- As the date for implementation of Basel III
approaches, central banks across the Gulf Cooperation Council
are now looking for compliance with the regulatory
requirements on new deals;
- At the end of 2012, Abu Dhabi Islamic Bank made
headlines as the inaugural issuer of additional tier 1
capital certificates in shariah-compliant form;
- Write-down at the point of non-viability presents
a key challenge, although many believe this feature is
inherently shariah-compliant given that holders will be
expected to share in the losses of the relevant financial
Shariah-compliant regulatory capital issuances from banks in
the Gulf Cooperation Council (GCC) are becoming more prevalent.
But several challenges lie in wait in the drive to create
shariah-compliant bank capital structures.
The deals seek to comply with regulatory requirements under
the latest incarnation of the Basel reform package –
Basel III. Drawn up by regulators in response to the global
financial crisis, these measures...