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INTERNATIONAL ISLAMIC MONEY MARKET
Transcript of INTERNATIONAL ISLAMIC MONEY MARKET
all the struggle in implementing the right judgement and the right law due to save all muslims in the world from any riba and any shubhah in any transactions.
5.0 THE CHALLENGES
The Acceptance In A View Of Continent Middle East Countries
Lack Of Knowledge Compare To Other Islam Countries
MALAYSIAN ISLAMIC MONEY MARKET
2.1 Islamic Interbank Market
Prepared by :
Norsharina Binti Mohd Noor
Nor Hidayah Binti Shamsuddin
Nurul Affiza Binti Zahari
Prepared for :
Prof Dr Madya Abu Bakar & Beloved Friends
Malaysian Islamic Money Market
Money Market in Continent Countries
International Islamic Financial Market (IIFM)
1.1 Definition of Islamic money market
Money market is the ability to provide investment opportunities for those who have surplus funds and also as a resource for those who have a lack of funds.
The avenue for secondary trading of money market instrument.
Used as a channel for the central bank to conducts it minority policies.
Since 1979, Bank of Pakistan initially introduced to Islamize the financial system.
Now, six Islamic banks and 13 conventional banks with a total network of 200 branches offer Islamic banking products and services.
Islamic banks follow the concept of Mudarabah (profit sharing) based on investor-entrepreneur relationship.
At present, Islamic banks use short- term deposits on variable rates to finance medium and long-term projects.
1.4 Comparison between Islamic and conventional money market
- Introduced on January 3, 1994
- To provide a ready source of short-term investment outlets based on Syariah principle
- Contracts currently used are mudarabah and wakalah.
2.12 types of instruments
Mudharabah interbank instrument
Government Investment Issue (GII)
Bank Negara Monetary Notes-i (BNMN-i)
Sell and Buy Back Agreement (SBBA)
Cagamas Mudharabah Bonds (SMC)
When Issue (WI)
Islamic Accepted Bills (IAB)
Islamic Negotiable Instruments (INI)
Islamic Private Debt Securities
Ar Rahnu Agreement-I (RA-i)
Sukuk BNM Ijarah (SBNMI)
3.0 Money Market in Continent Countries
3.1 International Islamic Liquidity Management Corporation (IILM)
- international institution established by central banks, monetary authorities and multilateral organizations to create and issue short-term Shariah-compliant financial instruments to facilitate effective cross-border Islamic liquidity management.
- Established on 25 October 2010
- Membership of the IILM is open to central banks, monetary authorities, financial regulatory authorities or government ministries or agencies that have regulatory oversight of finance or trade and commerce, and multilateral organizations.
3.2 Islamic Money Market in Europe
3.2.1 Sukuk Issuance and Trading
-The pioneering sukuk was by the German Federal State of Saxony-Anhalt which raised 100 million through an issuance on 31st July 2004.
- The sukuk is for 5 years using an ijara leasing structure with a floating return based on the six month Euribor rate plus one percent. As sukuk have to be asset backed, the solution under German law was to establish a ‘Dutch’ foundation, which corresponded to the classical Islamic concept of a waqf.
-established on 11 January 2005.
-focused on three business areas with specialized divisions: treasury and capital markets, asset management and corporate finance and advisory.
3.2.2 European Islamic Investment Bank (EIIB)
4.0 INTERNATIONAL ISLAMIC FINANCIAL MARKET (IIFM)
was founded with the collective efforts of the :
1) Central Bank of Bahrain
2) Islamic Development Bank
3) Autoriti Monetari (i.e. Monetary Authority)
4) Brunei Darussalam
5) Bank Indonesia
6) Central Bank of Sudan
7) the Bank Negara Malaysia (delegated to Labuan Financial Services Authority)
iifm is the international Islamic financial services industry’s
standard setting organization focused on the Islamic capital & money market (ICMM) segment of the industry.
Its primary focus lies in the
of Islamic financial products, documentation and related processes at
the global level
4.2 The Benefits
Providing universal platform
Facilitate unification, Shari’ah harmonization and legal reforms Islamic financial markets
Shariah Advisory Panel consisting of renowned scholars, hence, ensuring wider Shariah acceptance
under the guidance
of its Board of Directors and with the support of its member of the institutions.
pooling of expertise
from the banks, legal, accounting and other market participants who work together under the guidance of the IIFM Shari’ah Advisory Panel
4.3 Vision, Mission And Objectives
Active and well regulated trading and capital flows across the full spectrum of Shari'ah compliant and financial instruments internationally.
To achieve the Vision by catalyzing both national and international trading infrastructure, product innovation and information flow within strong, transparent and well regulated standards and guidelines. Promoting acceptance and integration with mainstream markets
- work in partnership
- acts as a market body in the development and maintenance of uniformity, assisting with standards benchmarking for transparency and robustness of Islamic financial markets under the guidance of the IIFM Shariah Advisory Panel
- increase the development and promotion of the Islamic Capital and Money Market
INTERNATIONAL ISLAMIC MONEY MARKET