Dubai, United Arab Emirates - To further strengthen Islamic liquidity management, develop alternate tools, and increase liquidity in Sukuk and other Islamic financial instruments; Bahrain based International Islamic Financial Market (IIFM) organized an industry consultative meeting which was hosted by Standard Chartered Saadiq at their office in DIFC (Dubai).
Since the publication of IIFM white paper on "Alternative to Repo & Collateralization", the IIFM recommendation on introducing collateralized instrument for Islamic liquidity management is now gaining momentum with several IIFM member institutions offering collateralized product in the Islamic inter-bank market such as Abu Dhabi Islamic Bank. Also on the jurisdiction level Bank Negara Malaysia has recently announced introduction of collateralized murabaha product for monetary management.
The purpose of the meeting was to have deliberation and obtain input from industry experts on the issues concerning collateralized products and its related documentation. The global financial crisis has highlighted the importance of credit enhancement in the financial system and Islamic Industry is in urgent need to have credit enhanced standard products and documentation which is one of the key areas of IIFM.
The participants deliberated on technical aspects of collateral management, product structuring & documentation, legal & regulatory requirements, Shari'ah implications and other related issues. IIFM will continue to brief the Islamic Industry on the subject and address the related issues in the coming months.
Mr. Afaq Khan, CEO Standard Chartered Saadiq, appreciated IIFM's endeavors to explore solutions to the pressing needs of the industry and to achieve standardization by bringing in all stakeholders together. He mentioned that as a leading player in the global Islamic industry Standard Chartered Saadiq is fully committed to support and contribute to such industry building initiatives.
The meeting was attended by Shari'ah Scholars, Regulator, industry experts from banks, law firms, accounting firms, International custodian & collateral management service providers and other market participants from various jurisdictions.
Mr. Ijlal Ahmed Alvi, CEO IIFM, thanked Standard Chartered Saadiq for its support. He also thanked the participating institutions namely ABC Islamic Bank, Al Hilal Bank, Bank Indonesia, Credit Agricole, Clifford Chance, Clearstream, Deloitte, DDCap, Euroclear, Islamic Development Bank, Ithmaar Bank, Kuwait Finance House (Bahrain) and National Bank of Abu Dhabi for their valuable contribution during the meeting. Mr. Alvi also expressed his deepest thanks, appreciation and gratitude to the IIFM Board of Directors and IIFM Shari'ah Scholars for their continued support and guidance in the development of International standards for Islamic Capital & Money Market segment.
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About IIFM
IIFM is the international Islamic financial market's organization focused on the Islamic Capital & Money Market segment of the Islamic finance industry. Its primary focus lies in the standardization of Islamic financial products, documentation and related processes at the global level.
IIFM was founded with the collective efforts of the Central Bank of Bahrain, Bank Indonesia, Central Bank of Sudan, Labuan Financial Services Authority (Malaysia), Autoriti Monetari Brunei Darussalam and the Islamic Development Bank (a multilateral institution based in Saudi Arabia).
Besides the founding members, IIFM is supported by its permanent member State Bank of Pakistan and further supported by a number of regional and international financial institutions as well as other market participants as its members. The main strength of IIFM is pooling of expertise from banks, legal and other market participants who work together under the guidance of Shariah scholars.
More information about IIFM is available on www.iifm.net
For PR inquiries, please contact:
Usman M. Naseer
Business Development Officer
International Islamic Financial Market (IIFM)
Email: usman.naseer@iifm.net
Tel: +971 17 500161
© Press Release 2012
