MALAYSIA - FINANCE - Introduction of Collateralised Murabahah

www.bnm.gov.my - Bank Negara Malaysia wishes to announce the introduction of a new Islamic monetary instrument, the Collateralised Murabahah.

Collateralised Murabahah is essentially a Shariah-compliant financing secured by assets in which the financier has the right to sell the asset should the client fail to repay the financing. It combines the widely accepted Murabahah financing transaction with Sukuk that forms as the pledged asset to back the transaction.  (source)

MALAYSIA - FINANCE - Bank Negara introduces new Islamic instrument

www.theborneopost.com -KUALA LUMPUR: Bank Negara yesterday announced introduction of a new Islamic monetary instrument, Collateralised Murabahah.
It said Collateralised Murabahah was essentially a syariah-compliant financing secured by assets in which the financier had the right to sell the asset should the client fail to repay the financing.
“It combines the widely accepted Murabahah financing transaction with sukuk (Islamic bond) that forms the pledged asset to back the transaction,” it said in a statement.  (source)

MALAYSIA - REGULATIONS - The IFSB Council Adopts Two New Guiding Principles for the Islamic Financial Services Industry

www.ifsb.com - The IFSB Council Adopts Two New Guiding Principles for the Islamic Financial Services Industry

Manama/Kuala Lumpur, 29 March 2012 - The Council of the Islamic Financial Services Board (IFSB) has resolved to approve the adoption of two new Guiding Principles in its 20th Meeting in Manama, Bahrain today. The two documents are:

IFSB-12: Guiding Principles on Liquidity Risk Management for Institutions offering Islamic Financial Services (excluding Islamic Insurance (Takāful) Institutions and Islamic Collective Investment Schemes)
IFSB-13: Guiding Principles on Stress Testing for Institutions offering Islamic Financial Services (excluding Islamic Insurance (Takāful) Institutions and Islamic Collective Investment Schemes) (source)

INDONESIA - LIQUIDITY - Foreign banks may trade in sharia-based inter-bank money market

JAKARTA: Bank Indonesia invites foreign banks to inter-bank money market based on Islamic principles, expanding the pool of participants, and allow transactions using brokerage.

The central bank also relaxes the regulation of sharia-based money market by allowing transfer of ownership of instruments through sale and purchase agreement. (source)

INDONESIA - LIQUIDITY - Central Bank paves way for Inter-sharia bank market

JAKARTA: Bank Indonesia will regulate inter-sharia banks transactions in money market to  boost liquidity in the industry, offering different collateral policy, differing it from that of conventional banks.

The central bank expected the regulation to increase attractiveness of Indonesian sharia banking, which currently ranks fourth in the world with regard to its supporting regulation system and infrastructure. (source)

INDONESIA - LIQUIDITY - BI Allows Islamic Principle-Based Commodities as Collateral

Data from Bank Indonesia revealed that Islamic interbank money market transactions in December 2011 fell 54.54 percent to Rp 70 billion per day compared to Rp 154 billion in December 2010. (IFT/DINUL MUBAROK)

 

JAKARTA (IFT) – Bank Indonesia (BI) allows Islamic banks to use commodities as collaterals to boost Islamic interbank money market transactions. The use of commodities is expected to help Islamic banks to manage their liquidity. (source)

INDONESIA - CAPITAL MARKETS - Indonesia cbank plans to allow sukuk for reverse repo

sg.finance.yahoo.com - JAKARTA, Dec 5 (Reuters) - Indonesia's central bank plans to allow the trade of sharia bonds for its reverse repo operations, deputy governor Halim Alamsyah said on Monday, in a move aimed at deepening the local sukuk market.

Bank Indonesia is now drafting the rules, which may be effective next year, Alamsyah told Reuters. The central bank's reverse repo operations are aimed at absorbing excess liquidity from the financial system.

Indonesia has the world's largest Muslim population, yet it lags neighbour Malaysia in attracting foreign investors into the local sukuk market, which is dominated by local banks and insurance firms. (source)

INDONESIA - CAPITAL MARKETS - BSM Lyrics Commodity Sharia

pkesinteraktif.com - Jakarta (23/10) - release of commodity exchange sharia by the Jakarta Futures Exchange (BBJ) is intended for Islamic banks to manage liquidity. One Islamic bank that started to "look" is the instrument of Bank Syariah Mandiri (BSM).

"We do not rule out the BI related it (commodity sharia), so still we wait. If it's out, we see a situation, if needed we will definitely use fasitas it," said Fauzi Yuslam, Managing Director of BSM on the sidelines inauguration of the Association of Central Board of Islamic Economics (IAEI) in Jakarta, Friday (22/10). (source)

BRUNEI - Solving liquidity problems through sukuk structures

SUKUK or 'sukuk structures' in Islamic banking can help to solve the liquidity problems that are currently plaguing and inhibiting the development of this sector, said Shahin Shayan Arani, Chairman of the board of financial engineering company Hoda International.

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.

PUBLICATION - REPORT - IIRA and DS Assess the Pulse of OIC Capital Markets

Manama August 31, 2010

The Islamic International Rating Agency, Bahrain and Dinar Standard, USA have joined hands together to release a research report on the Pulse of the OIC (Organization of Islamic Conference member countries) Islamic Capital Markets.