MALAYSIA - REGULATIONS - New Exposure Drafts from IFSB

Exposure Drafts

ED12: Guiding Principles of Liquidity Risk Management
[ ENGLISH]

ED13: Guiding Principles of Stress Testing
[ ENGLISH]

MALAYSIA - REGULATIONS - The IFSB issues two new Exposure Drafts for Public Consultation

ameinfo.com - The Islamic Financial Services Board (IFSB) issues two new Exposure Drafts (EDs) for a three-month Public Consultation period starting today. The EDs are drafts of guiding principles on: 1) Liquidity Risk Management and 2) Stress Testing for institutions offering Islamic financial services (IIFS).

The drafts were approved for issuance by the Technical Committee, in its 25th meeting held in Abu Dhabi on 6 October 2011. The IFSB invites comments from among regulatory and supervisory authorities, international organisations, market players, academics and other interested parties on the two drafts.  (source)

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. 

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.