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)

WORLD - FINANCE - Islamic repo agreements struggle for traction

www.reuters.com - May 10 (Reuters) - Islamic repurchase agreements may struggle to gain wide acceptance as a tool for financial institutions because the industry lacks clear rules governing their use, participants at a major industry conference told Reuters.
Liquidity management products such as Islamic repos were one of the main themes at the annual meeting of the Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) in Manama this week.  (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 - 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)

MALAYSIA - LIQUIDITY MANAGEMENT - IILM To Issue First Sukuk In 6 Months, Says Zeti

KUALA LUMPUR, Nov 15 (Bernama) - The International Islamic Liquidity Management Corporation (IILM) is expected to issue its first sukuk in the next six months, as it will contribute to better liquidity management, Bank Negara Malaysia (BNM) Governor Tan Sri Zeti akhtar Aziz said Tuesday.

"We are about to get rated for the issuance short-term instruments and we are in the process of all the parameters as well as to get the allocation of high-quality underlying assets. (source)

INDONESIA - LIQUIDITY MANAGEMENT - Council OK's Islamic Commodities as Money Market Instruments

JAKARTA (IFT) – Bank Indonesia has obtained an approval from National Shariah Council – Indonesian Council of Ulema (DSN-MUI) to use Islamic commodities as one of the instruments for Islamic Interbank Money Market (PUAS). Currently, Bank Indonesia is preparing the regulation concerning the use of Islamic commodities as an instrument for PUAS. (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)

MALAYSIA - REGULATIONS - New Exposure Drafts from IFSB

Exposure Drafts

ED12: Guiding Principles of Liquidity Risk Management
[ ENGLISH]

ED13: Guiding Principles of Stress Testing
[ ENGLISH]

MALAYSIA - REGULATIONS - The IFSB issues two new Exposure Drafts for Public Consultation

ameinfo.com - The Islamic Financial Services Board (IFSB) issues two new Exposure Drafts (EDs) for a three-month Public Consultation period starting today. The EDs are drafts of guiding principles on: 1) Liquidity Risk Management and 2) Stress Testing for institutions offering Islamic financial services (IIFS).

The drafts were approved for issuance by the Technical Committee, in its 25th meeting held in Abu Dhabi on 6 October 2011. The IFSB invites comments from among regulatory and supervisory authorities, international organisations, market players, academics and other interested parties on the two drafts.  (source)

MALAYSIA - BANKING - Islamic banks urged to boost short-term syariah-compliant products Read more: Islamic banks urged to boost short-term syariah-compliant products

KUALA LUMPUR: Islamic banks in the country Malaysia have been urged to introduce more short-term syariah-compliant products to attract foreign investors.

 

We always have investors in Malaysia looking for syariah-shariah compliant products and sometimes, from the risk management perspective, because of due to the risk management perspective, they are constrained in putting their investment into investing in Islamic assets. that they have.

Hence, they will go abroad and invest in syariah-compliant products overseas,” said Amanie Islamic Finance Consultancy and Education LLC managing director, Dr Mohd Daud Bakar. (source)

FINANCE - IILM - Retooling Liquidity Management

Islamic repos, or repurchase agreements, provide a new tool in creating and managing liquidity in the Islamic interbank money market. SCOTT WEBER identifies what instruments are available in the market and the extent to which they are being utilized.

Islamic repos aim to provide Islamic financial institutions with an additional avenue to source their funding requirements, providing banks with relevant tools to effectively manage their liquidity needs allowing the banks to finance its asset inventory.

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.