Question ID
2024_7112
Legal act
Directive 2013/36/EU (CRD)
Topic
Other issues
Article
161(8)
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
N/A
Type of submitter
Other
Subject matter
Article 161(8) CRD
Question

Has the EBA received a mandate from the Commission to explore whether Islamic financial sector entities are adequately covered by the CRD and the CRR? If so, has the EBA completed the report and provided a legislative proposal to the European Parliament and to the Council? If not, does the EBA have the authority to produce a report without a mandate from the Commission?

Background on the question

There is currently uncertainty with regards to whether Islamic financial sector entities are adequately covered by the CRD, the CRR, and the DGSD of the EU Single Rulebook (and also the CCD).  For example, Islamic banks could avoid classification as a 'credit institution' by structuring deposit-taking accounts in such a way as to prohibit the granting of credits on their own account (while still retaining some of the benefits of treating deposits as their own credit). It is also unclear how to classify sukuk for the purposes of capital adequacy, and it is unclear which Islamic finance assets qualify as HQLA assets (and what haircuts should be applied).

Submission date
Rejected publishing date
Rationale for rejection

This question has been rejected because it does not fulfil the formal criteria for submission. For further information on the purpose of this tool and on how to submit questions, please see “Additional background and guidance for asking questions”.

Status
Rejected question