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RR-3.2.2

Islamic bank licensees must consider both internal and external factors or events that might give rise to reputational concerns (refer to Section RR-2.1). Banks must consider the following qualitative indicators, amongst others, in their assessment of reputational risk:

(a) The number of sanctions from official bodies during the year;
(b) Media campaigns and consumer-association initiatives that contribute to a deterioration in the public perception and reputation of the institution;
(c) The number of and changes in customer complaints;
(d) Malpractices and irregularities;
(e) Negative events affecting the institution's peers;
(f) Dealing with sectors that are not well perceived by the public (e.g. weapons industry, embargoed countries etc.) or people and countries on sanctions lists; and
(g) Other 'market' indicators, for example, rating downgrades or changes in the share price throughout the year.
July 2018