Jakarta, Indonesia - 23 December, 2010 - The 23rd Board of Directors meeting of the IIFM was hosted last week by Bank Indonesia at their offices in Jakarta. The meeting was attended by senior representatives from Bank Indonesia, Central Bank of Bahrain, , Labuan Financial Services Authority (Malaysia), Ministry of Finance (Brunei Darussalam), Islamic Development Bank, State Bank of Pakistan, Bank Islam Malaysia Berhad, Credit Agricole CIB, Standard Chartered Saadiq and the National Bank of Kuwait (Bahrain).
An IIFM industry seminar themed 'Sukuk, Hedging and Liquidity Management in Islamic Finance', was also held in conjunction with the meeting. "For Indonesia, this meeting and seminar represent momentum to maintain and enhance Islamic banking development and to encourage product innovation in order to meet the requirement for hedging and liquidity management in the financial sector and international trade," explained the Deputy Governor of Bank Indonesia, Dr. Halim Alamsyah, who is also a member of the IIFM Board of Directors.
Mr. Khalid Hamad Abdul Rahman Hamad, Executive Director-Banking Supervision Central Bank of Bahrain & Chairman of IIFM, welcomed the Board members and thanked them for their foresightedness and guidance which has been instrumental in IIFM's focus on standardized documentation & products for the Islamic Capital & Money Market.
The IIFM Chairman also thanked the member banks particularly Credit Agricole CIB, Standard Chartered Saadiq, HSBC Amanah, Bank Islam Malaysia Berhad, Kuwait Finance House, Abu Dhabi Islamic Bank, ABC Islamic Bank, Naftional Bank of Kuwait, Al Hilal Bank and others who actively participate in IIFM events and also provide valuable support IIFM standardization initiatives.
The Board of Directors reviewed the completed documentation initiatives of IIFM such as the Tahawwut (Hedging) Master Agreement and the Master Agreements for Treasury Placement; and noted the importance of these standardized documentation and the critical role such master agreements play in the unification of the Islamic finance industry.
The Board also deliberated on additional standardization projects which IIFM has commenced including the standardization of key Islamic hedging products and related templates, development of an international Master Wakala Agreement, as well as exploring other standardization needs as recommended by IIFM members and the industry such as Sukuk market standardization requirements. The Board approved various market consultative meetings for these projects.
IIFM Chief Executive Officer, Mr. Ijlal Alvi briefed the Board on Repo Working Team's efforts in carrying out research, deliberations and developing possibilities for liquidity management tools which is highlighted in IIFM.
Reference Paper on I'aadat Al Shira'a (Repo Alternative) & Collateralization Possibilities' which was published in July 2010 and further efforts being made in this important area.
The Board appreciated the support and valuable contribution of the IIFM Shariah Advisory Panel in IIFM standardization efforts and welcomed Shaikh Dr. Adbul Sattar Abu Ghuddah, Shaikh Dr. Ali Muhyealdin A. Al-Quradaghi and Shaikh Dr. Eltegani Abdelgadir Ahmed Mohamed, who recently joined the Shariah Panel.
The Board also noted the Tahawwut Master Agreement post-launch efforts of IIFM, especially the briefing workshops IIFM has organized in various jurisdictions, free of cost to its members and non-members; and in creating awareness and development of hedging in Islamic finance. Mr. Ijlal Alvi explained, "TMA is the building block for Islamic risk management and its launch has paved the way for law reforms as well as other benefits to financial institutions. The process of further standardization in hedging products is initiated by IIFM in association with joint TMA partner International Swaps and Derivatives Associations".
The Board meeting was followed by a press conference and a 1 ½ day Islamic finance industry seminar focusing on Sukuk, Hedging and Liquidity Management. The seminar received strong support from Indonesian market practitioners with more than 100 delegates participating. Mr. Alvi thanked Bank Indonesia for hosting the event and all the industry experts/presenters who contributed to the success of the seminar particularly from Ministry of Finance (Indonesia), ASBISINDO, Bank Muamalat Indonesia, CIMB Niaga, Karim Business Consulting, State Bank of Pakistan, Islamic Development Bank, Clearstream Banking, Clifford Chance LLP and other financial institutions.
Source : http://www.zawya.com/story.cfm/sidZAWYA20101223103134 - Dec 23, 2010
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