Last month, the world’s first Islamic interbank benchmark rate (IIBR) was launched. It was the result of a collaborative approach taken by many Islamic financial institutions, industry associations and Sharia scholars over the course of 24 months to address a decades-old industry challenge: how to decouple Islamic finance from a conventional western pricing benchmark (Libor) when an “Islamic” alternative was not available.
The objective was to support and preserve Islamic finance authenticity. The IIBR is an interbank benchmark that offers a reliable and realistic standard to better measure the cost of funding for Islamic financial institutions………………………………………..Full Article: Source