In the face of uncertainties, market players in the Islamic finance sector will need to continue to explore innovative tools to address the industry’s evolving liquidity management needs

 

Istanbul, Türkiye – 14 December 2023.

 

The International Islamic Liquidity Management Corporation (IILM) is pleased to announce that it successfully organised the ‘Islamic Liquidity Management Roundtable’ in Istanbul, Türkiye, on 13 December 2023, marking the fourth edition of such events by the IILM since 2013.

The half-day Roundtable event, organised in commemoration of the 10th anniversary of the IILM Ṣukūk Programme, convened approximately 60 stakeholders from the global the Islamic finance industry to engage in discussions on the current state of liquidity management, challenges faced by Islamic financial institutions and the exploration of innovative solutions for enhanced Sharīʿah-compliant liquidity management. The event also attracted a global audience of more than 100 virtual participants.

The Roundtable, which featured an international line-up of prominent experts, was divided into two focused sessions, titled the ‘Global Islamic Liquidity Outlook’ and ‘A Closer Look at Ṣukūk Liquidity: From Buy to Hold to a More Active Secondary Market Trading’.

The first session, moderated by Mustafa Adil, Head of Islamic Finance at London Stock Exchange Group (LSEG), saw a robust discussion among speakers from a diverse set of background, such as Fitch Ratings, the Central Bank of the Republic of Türkiye, Islamic Financial Services Board, Bank Indonesia, and the IILM. The session touched on liquidity challenges faced by Islamic financial institutions across jurisdiction, regulatory development and High-Quality Liquid Asset (HQLA) cross-border harmonisation, and ESG Ṣukūk Market Development.

The second session, moderated by the IILM’s Executive Director and Head of Business Operations, Hichem Bouqniss, saw a productive discourse on the current landscape of Ṣukūk tradability, enhancing the secondary market liquidity, Ṣukūk and Islamic Repo as liquidity management tools, as well as developing innovative Islamic products and platforms to address market needs. Distinguished speakers featuredd representatives from the Islamic Development Bank (IsDB), Kuwait Finance House, Albaraka Türk Participation Bank, and Dukhan Bank.

Dr. Umar Oseni, Chief Executive Officer of the IILM, in his welcoming remarks, said: “In the face of uncertainties, market players in the Islamic finance sector will need to continue to explore innovative tools to address the industry’s evolving liquidity management needs. Today’s Roundtable event is a unique opportunity for industry professionals, experts, and regulators to come together and share their insights on global Islamic liquidity management.

I am proud to say that the IILM has been dedicated to fortifying the underlying ecosystem of the Islamic finance industry by consistently and regularly issuing high-quality Shari’ah-compliant liquidity instruments to the market. The insights shared and collaborations forged during the Roundtable have the potential to shape the future of Islamic finance and contribute to a more sustainable and inclusive global financial stability.”

The Roundtable event also witnessed the debut of the inaugural ‘Global Islamic Liquidity Management Report: Building a Robust and Resilient Ecosystem’, an industry wide report on the global Islamic liquidity landscape.

The initiative undertaken by the IILM was done in collaboration with LSEG and aims to increase know-how and knowledge sharing in the field of Islamic liquidity management among market participants. The report also features executive interviews with leading figures from multilateral institutions as well as global banks.

“The report represents the IILM’s sustained commitment towards serving the Islamic finance industry in addressing its liquidity needs and covers comprehensive perspectives from various key stakeholders. It also covers the current market landscape and market size, the role of central banks and key liquidity programmes, and the role of the IILM Ṣukūk programme to address the industry’s liquidity management needs,” Dr. Umar said during the launch of the report.

The public may access and download the report via: https://www.zawya.com/en/islamic-economy/islamic-finance-reports/global-islamic-liquidity-management-report-2023-building-a-robust-and-resilient-ecosystem-qiprjty1

The Islamic Liquidity Management Roundtable 2023 was organised by the IILM with the support of Albaraka Türk Participation Bank, the IILM’s only Primary Dealer from Türkiye.

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About the IILM

The International Islamic Liquidity Management Corporation (IILM) is an international organisation established on 25 October 2010 by central banks, monetary authorities and multilateral organisations to develop and issue short-term Shari’ah-compliant financial instruments to facilitate effective cross-border liquidity management for institutions that offer Islamic financial services (IIFS).

The current members of the IILM Governing Board are the central banks and monetary agencies of Indonesia, Kuwait, Malaysia, Mauritius, Nigeria, Qatar, Türkiye, the United Arab Emirates, as well as the multilateral Islamic Corporation for the Development of the Private Sector.

Membership of the IILM is open to central banks, monetary authorities, financial regulatory authorities or government ministries or agencies that have regulatory oversight of finance or trade and commerce, and multilateral organisations.

The IILM is hosted by Malaysia and headquartered in Kuala Lumpur.

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Download the Arabic version of the press release here.