Bahrain – International Islamic Financial Market (IIFM), a Bahrain-based standard-setting body for Islamic finance, yesterday announced its intention to develop new standards for Sharia-compliant syndicated financing and new Islamic liquidity management instruments.

The announcement follows a board meeting of the organization, which has formed a Syndication Standardisation Core Working Group consisting of leading institutions from key jurisdictions to finalise the consultation paper which will be deliberated upon at the IIFM industry consultation meeting planned to take place during Q3 2022.

Based on the meeting recommendations, IIFM may commence the standardisation initiative.

The board assessed the growing need for developing an additional Islamic liquidity management tool and approved the formation of a global working group and organised an industry consultation meeting in 2022 so that actual development work may commence based on the recommendations from the market.

Members stressed on the importance of key stakeholders’ participation in IIFM standardisation working groups from most of the jurisdictions where Islamic finance is practised and emerging.

The board agreed with IIFM management’s suggestion to initiate consultation-based review of certain widely used IIFM-ISDA Islamic hedging Standards.

IIFM will explore organising a joint market consultation exercise with its partner the International Swaps and Derivatives Association (ISDA) to assess additional requirements as well as possible inclusion of limited enhancements based on market feedback and regulatory developments.

The board also assessed IIFM’s ongoing work in the area of mandatory global climate-change and ESG related requirements.

“IIFM develops standards with a view to meeting the globalisation requirements of Islamic finance and also maintaining the development of the industry on a unified and harmonised basis,” said Ijlal Alvi, chief executive of IIFM.

Courtesy by :https://www.zawya.com/en/islamic-economy/islamic-finance/international-islamic-financial-market-to-develop-fresh-standards-r1se0k62