MARKETS - IILM takes a step closer to becoming a reality

The International Islamic Liquidity Management Corporation (IILM), which was launched in Kuala Lumpur in October, took a step closer to becoming a reality when its governing board last week appointed Mahmoud AbuShamma as its inaugural chief executive officer (CEO), for a three-year tenure effective Feb. 1, 2011.

AbuShamma’s tenure is also subject to the adoption by the Malaysian Parliament, the Dewan Rakyat, of a Special Enabling Act which would accord the IILM a special diplomatic status and its attendant privileges.

FINANCE - IILM - Appointment of Chief Executive Officer and Shariah Committee of the IILM

[Kuala Lumpur and  Jeddah, 13 December 2010 / 7 Muharam 1432] - The International Islamic Liquidity Management Corporation (IILM) wishes to announce the appointment of Mr. Mahmoud AbuShamma as its first Chief Executive Officer (CEO) for a three-year tenure effective 1 February 2011.

Prior to his appointment at the IILM, Mr. Mahmoud has served as the Global Head of HSBC Amanah Coverage at HSBC Bank Middle East Limited, Dubai in charge of critical HSBC Amanah relationships globally, including Governments, high networth individuals and top corporate clients. He was instrumental in establishing the HSBC Amanah Syariah unit – the first foreign bank to open an Islamic retail banking unit in Indonesia, and served as its Head from 2003 to 2010. In London, he established and headed the HSBC's Islamic Treasury Unit and originated the first Islamic Syndication by HSBC Amanah.

IILM - Islamic finance liquidity body to issue sukuk in '11

A new global Islamic liquidity management corporation backed by central banks will start issuing Islamic bonds next year to help Islamic banks manage their liquidity, a board member said on Tuesday.

Liquidity management is seen as the weak point of the emerging Islamic finance industry as it currently relies on the use of commodity murabaha, a money market instrument only grudgingly accepted by Islamic scholars for lack of alternatives.

FINANCE - IILM - Retooling Liquidity Management

Islamic repos, or repurchase agreements, provide a new tool in creating and managing liquidity in the Islamic interbank money market. SCOTT WEBER identifies what instruments are available in the market and the extent to which they are being utilized.

Islamic repos aim to provide Islamic financial institutions with an additional avenue to source their funding requirements, providing banks with relevant tools to effectively manage their liquidity needs allowing the banks to finance its asset inventory. 

FINANCE - Liquidity management - Islamic finance boost via IILM: Zeti

The establishment of the International Islamic Liquidity Management Corp (IILM) will further enhance the capacity of Islamic finance in facilitating efficient cross-border flows, Bank Negara Malaysia (BNM) Governor, Tan Sri Dr Zeti Akhtar Aziz, said today.

BANKING - Establishment of IILM is a big relief

By Mushtak Parker - Published: Oct 10, 2010

See also : here (earlier post in blog)

The announcement by the Islamic Development Bank (IDB) and the Islamic Financial Services Board (IFSB) last Thursday at the side of the International Monetary Fund (IMF)-World Bank Group annual meetings in Washington that a Memorandum of Participation has been signed for the establishment of the International Islamic Liquidity Management Corporation (IILM) has left the Islamic finance industry with abated breath. The lack of a truly global and well-oiled liquidity management scheme has been the bane of the industry, with no government or supranational taking on the task until now.

BANKING - The IFSB announces the establishment of an International Islamic Liquidity Management Corporation

Washington, 7 October 2010 - The Islamic Financial Services Board (IFSB) today facilitated the signing of the Memorandum of Participation for the establishment of the International Islamic Liquidity Management Corporation (IILM). The primary objective of the IILM is to issue Sharī`ah-compliant financial instruments in order to facilitate more efficient and effective liquidity management solutions for institutions offering Islamic financial services (IIFS), as well as to facilitate greater investment flows of Sharī`ah-compliant instruments across borders.