On 12 October, the Islamic Financial Services Board (IFSB), a standards setting body for Islamic Financial Institutions (IFIs), issued an Exposure Draft presenting their proposed principles on liquidity risk management.
As a global standard setter for IFIs, the IFSB principles are often adopted by the relevant supervisory authorities and hence are an important step in improving stability of financial systems where IFIs operate. This draft is credit-positive for IFIs as it translates a set of globally recognised best practices for liquidity management into the Shari’ah-compliant banking context………………………………………Full Article: Source