Eleven central banks and two multilateral organisations signed the articles of memorandum of the International Islamic Liquidity Management Corporation (IILM), the latest international body to serve the global Islamic finance industry.
The IILM was launched at the the Global Islamic Finance Forum (GIFF) held on 25 October 2010 in Kuala Lumpur in the presence of Malaysian Prime Minister Mohd Najib Tun Abdul Razak; Raja Nazrin Shah, the Crown Prince of the State of Perak and Financial Ambassador of the MIFC initiative; Dr Zeti Akhtar Aziz, Governor of BNM, other central bank Governors, and regulators and dignitaries from the Muslim and non-Muslim jurisdictions, including Mohammed Al-Jasser, Governor of the Saudi Arabian Monetary Agency (SAMA).
“Malaysia,” stressed Malaysian Prime Minister Mohd Najib Tun Abdul Razak who witnessed the launching, “is honoured to have been chosen to host the Corporation. Its ultimate aim is to enhance international integration of the Islamic money market and capital markets and to be better equipped to face any liquidity crisis. I wish to commend the foresight, innovation and leadership displayed by the Islamic Financial Services Board (IFSB), the Taskforce and participating parties for this breakthrough, which surely will help take Islamic finance to a higher level of development.”
Governor Dr Zeti echoed the milestone achievement of the establishment of the IILM which she maintained would enable more effective and efficient liquidity management not only for the Islamic financial institutions but also for the management of Islamic financial portfolios. Dr Zeti also hailed the IILM as a demonstration of international collaboration among 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 added.
The establishment of the IILM was first announced by the Islamic Financial Services Board (IFSB) at the side of the International Monetary Fund (IMF)-World Bank Group Annual Meetings in Washington held in October 2010. In fact, the founding participants signed a Memorandum of Participation in Washington.
A statement from the IFSB said that IILM “will issue high quality financial instruments at both the national level and across borders, in an integrated manner, thereby enhancing the soundness and stability of the jurisdictions in which they operate.”
The Council of the IILM also held its first Board Meeting in Kuala Lumpur on the same day. The founding participants include Bank Negara Malaysia, the Central Bank of Qatar, the Bank of Mauritius, the Saudi Arabian Monetary Agency, the Central Bank of UAE, the Central Bank of Iran, the Bank of Indonesia, Banque Centrale du Luxembourg, the Central Bank of Nigeria, the Central Bank of Sudan and the Central Bank of Turkey. The other two signatories are the Islamic Development Bank (IDB) and its private sector funding arm, the Islamic Corporation for the Development of the Private Sector (ICD).
IILM has an authorised capital of USD1 billion of which USD75 million will be called up.
source : MIFC