ID :
147441
Tue, 10/26/2010 - 11:01
Auther :
Shortlink :
https://oananews.org//node/147441
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IILM TO BOOST CAPACITY OF ISLAMIC FINANCE IN FACILITATING CROSS-BORDER FLOWS
KUALA LUMPUR, Oct 25 (Bernama) -- The establishment of the International Islamic
Liquidity Management Corp (IILM) will further enhance the capacity of Islamic
finance in facilitating efficient cross-border flows, Bank Negara Malaysia
(Malaysia's Central Bank/BNM) Governor, Dr Zeti Akhtar Aziz, said Monday.
She said the corporation would enable effective liquidity management not only
for the Islamic financial institutions but also for the management of Islamic
financial portfolios.
"This development is also significant as it demonstrates an international
collaboration among the central banks.
"The greater collaboration among regulators seen in this decade cumulatively
serves to contribute towards the continued resilience of the global Islamic
financial system," she said in her welcoming address at the Global Islamic
Finance Forum 2010 here Monday.
Zeti, who will chair the first IILM board meeting, said the meeting, which would
be convened on the sidelines of the forum Monday, would pave the way for its
operationalisation.
Prime Minister Najib Razak, who is also present at the forum, witnessed the
signing of the Articles of Agreement between central bank governors and bank
representatives to set up the corporation.
She said recently, there has been an increased global engagement in syariah
matters among scholars, practitioners and regulators through international
platforms.
This was a remarkable achievement, given that much of these developments had
taken place amid the tumultuous global financial environment, she said.
"The rapid internationalisation in Islamic finance has also been underpinned by
the massive flow of knowledge, ideas, technology and people across borders, a
process which fosters a greater international understanding on the practices in
Islamic finance," she said.
Zeti said Islamic finance has, during this period, been expanding steadily at a
double-digit pace with the total Islamic financial assets estimated at more than
US$1 trillion (US$1=RM3.06).
She said this dynamic growth was driven by two key factors -- the pace of
innovation in Islamic finance provided extensive range of financial solution
sand the resilience derived from its inherent features provided foundations for
financial stability in the Islamic financial system.
On sukuk, for example, she said the advancement that has been achieved testified
to the ability of Islamic finance in meeting the requirements of today’s
differentiated demands of the modern economy.
"The sukuk market has demonstrated its ability to effectively intermediate funds
across borders and thus contribute towards the efficient allocation of funds in
the international financial system," say Zeti.
Today, the sukuk market has become an important avenue for international fund
raising and investment activities with the sukuk becoming a truly global
product, generating significant cross-border financial flows, she said.
The central bank governor said the internationalisation of Islamic finance was
also evidenced by the growing presence of Islamic financial institutions that
now operated beyond their own jurisdictions and the increased number of
international foreign financial institutions that offered Islamic financial
products and services.
Indeed, increasingly, Islamic finance has become part of the growth
strategies of a growing number of the global financial players, she said.
Besides that, new horizons were also fast emerging, as seen by the concrete
efforts for legislative and regulatory changes in several non-traditional
markets to facilitate the introduction of Islamic finance in these markets, said
Zeti.
The Global Islamic Financial Forum, which gathers Islamic financial players as well as Islamic scholars around the world, will be held for four days beginning Monday.
Liquidity Management Corp (IILM) will further enhance the capacity of Islamic
finance in facilitating efficient cross-border flows, Bank Negara Malaysia
(Malaysia's Central Bank/BNM) Governor, Dr Zeti Akhtar Aziz, said Monday.
She said the corporation would enable effective liquidity management not only
for the Islamic financial institutions but also for the management of Islamic
financial portfolios.
"This development is also significant as it demonstrates an international
collaboration among the central banks.
"The greater collaboration among regulators seen in this decade cumulatively
serves to contribute towards the continued resilience of the global Islamic
financial system," she said in her welcoming address at the Global Islamic
Finance Forum 2010 here Monday.
Zeti, who will chair the first IILM board meeting, said the meeting, which would
be convened on the sidelines of the forum Monday, would pave the way for its
operationalisation.
Prime Minister Najib Razak, who is also present at the forum, witnessed the
signing of the Articles of Agreement between central bank governors and bank
representatives to set up the corporation.
She said recently, there has been an increased global engagement in syariah
matters among scholars, practitioners and regulators through international
platforms.
This was a remarkable achievement, given that much of these developments had
taken place amid the tumultuous global financial environment, she said.
"The rapid internationalisation in Islamic finance has also been underpinned by
the massive flow of knowledge, ideas, technology and people across borders, a
process which fosters a greater international understanding on the practices in
Islamic finance," she said.
Zeti said Islamic finance has, during this period, been expanding steadily at a
double-digit pace with the total Islamic financial assets estimated at more than
US$1 trillion (US$1=RM3.06).
She said this dynamic growth was driven by two key factors -- the pace of
innovation in Islamic finance provided extensive range of financial solution
sand the resilience derived from its inherent features provided foundations for
financial stability in the Islamic financial system.
On sukuk, for example, she said the advancement that has been achieved testified
to the ability of Islamic finance in meeting the requirements of today’s
differentiated demands of the modern economy.
"The sukuk market has demonstrated its ability to effectively intermediate funds
across borders and thus contribute towards the efficient allocation of funds in
the international financial system," say Zeti.
Today, the sukuk market has become an important avenue for international fund
raising and investment activities with the sukuk becoming a truly global
product, generating significant cross-border financial flows, she said.
The central bank governor said the internationalisation of Islamic finance was
also evidenced by the growing presence of Islamic financial institutions that
now operated beyond their own jurisdictions and the increased number of
international foreign financial institutions that offered Islamic financial
products and services.
Indeed, increasingly, Islamic finance has become part of the growth
strategies of a growing number of the global financial players, she said.
Besides that, new horizons were also fast emerging, as seen by the concrete
efforts for legislative and regulatory changes in several non-traditional
markets to facilitate the introduction of Islamic finance in these markets, said
Zeti.
The Global Islamic Financial Forum, which gathers Islamic financial players as well as Islamic scholars around the world, will be held for four days beginning Monday.
