Liquidity Management Solutions for Islamic Banks
In the last issue of this publication there were several articles that touched on the problems experienced by Islamic banks in the matter of liquidity instruments. Many of the instruments approved by regulatory bodies in the in the West are not open to Islamic banks, because they are not Shari’ah compliant. The establishment of the International Islamic Liquidity Management Corporation (IILM) is an attempt to resolve this problem. The primary objective of the IILM is to issue Shari`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 Shari`ah-compliant instruments across borders.
Comments are closed.