Thomson Reuters Launches World's First Islamic Interbank Rate
(Thomson Reuters ONE) -
Thomson Reuters works with leading Islamic finance institutions and banks to
provide objective and dedicated benchmark for Shariah-compliant short-term
interbank funding in Islamic finance industry
New York, London, Bahrain, November 22, 2011 - Thomson Reuters today launched
the world's first Islamic finance benchmark rate, designed to provide an
objective and dedicated indicator for the average expected return on Shariah-
compliant short-term interbank funding. The Islamic Interbank Benchmark Rate
(IIBR), announced at the 18(th) Annual World Islamic Banking Conference in
Bahrain, uses the contributed rates of 16 Islamic banks and the Islamic sections
of conventional banks to provide a reliable and much-needed alternative for
pricing Islamic instruments to the conventional interest-based benchmarks used
for mainstream finance.
"The delinking from conventional performance benchmarks started more than a
dozen years ago and now we are extremely proud to offer the world's first
Islamic pricing benchmark, the Thomson Reuters Islamic Interbank Benchmark
Rate," said Rushdi Siddiqui, global head of Islamic finance, Thomson Reuters.
"We have taken a collaborative approach as industry challenges are best solved
by industry players working towards a common objective. The simplicity and
robustness of the new benchmark's methodology, governance, and transparency,
combined with the endorsement of many respected Islamic financial institutions
and scholars, will result in a reliable and realistic benchmark that better
measures cost of funding for Islamic financial institutions. Together we are
taking an important step forward for Islamic finance authenticity."
The benchmark's ongoing implementation and integrity will be overseen by an
Islamic Benchmark Committee of over 20 Islamic finance institutions, chaired by
Dr. Nasser Saidi, chief economist of the Dubai International Financial Center
(DIFC), and a Shariah Committee consisting of four world-respected Shariah
scholars.
"Dr. Nasser Saidi, chair of the Islamic Benchmark Committee and chief economist,
Dubai International Financial Centre, said: "The establishment of the IIBR marks
an important milestone in the maturation of Islamic money markets by providing
an international reference rate for interbank transactions. Conventional money
markets have relied on LIBOR, which by definition does not comply with Shariah
conventions. Islamic markets will be able to rely on the IIBR and it will become
an international reference rate for both conventional and Sharia-compliant
transactions. Our aim is to provide an IIBR that is reliable, timely,
representative of market conditions, transparent in its construction and
accepted as the market reference. Islamic money and financial markets are coming
of age and becoming part of the mainstream."
Established in co-operation with the Islamic Development Bank (IDB), Accounting
and Auditing Organisation for Islamic Financial Institutions (AAOIFI), the
Bahrain Association of Banks (BAB), Hawkamah Institute for Corporate Governance
and a number of major Islamic banks, the IIBR harnesses Thomson Reuters global
benchmark fixings infrastructure which is used to compile over 100 fixings
around the world.
"The Islamic Development Bank has been a founding member of the Islamic finance
industry since its inception in 1975 and the launch of this indigenous Islamic
benchmark will prove to be a major milestone in the growth and sustainability of
the industry," said Hassan Demirhan, director, Treasury Department, Islamic
Development Bank.
"As the global standard setter for the Islamic finance industry, the AAOIFI is
keen to support initiatives that progress the industry towards standardised
approaches around the consensus of its members. Given the support we have
received from the industry globally, particularly the main Islamic banks which
will contribute towards and utilise the rate, AAOIFI is proud to be associated
with this initiative which will certainly be defined as an important milestone
for the Islamic finance industry in years to come," said Khairul Nizam, deputy
secretary general, AAOIFI.
Rates for Shariah-compliant US dollar (USD) funding will be contributed by the
16-member panel in the morning each business day to Thomson Reuters systems and
will be published daily on Thomson Reuters terminals and feeds at 11.00am Makkah
time (GMT+3). The new benchmark can be used to price a number of Islamic
instruments including common overnight to short-term treasury investment and
financing instruments such as Murabaha, Wakala and Mudaraba, retail financing
instruments such as property and car finance, and sukuk and other Shariah-
compliant fixed income instruments. It can also be used for the pricing and
benchmarking of corporate finance and investment assets.
The US$1 trillion Islamic finance industry is currently growing at more than
15% per annum. It is frequently the topic of conversation by regulators,
international lending agencies, bankers, and asset managers in the G-20
countries as well as the 57 Muslim countries for raising asset-backed or asset-
based funds.
Notes to editors
Members of the Islamic Benchmark Committee are:
* Thomson Reuters
* Islamic Development Bank (IDB)
* Accounting and Auditing Organisation for Islamic Financial Institutions
(AAOIFI)
* Association of Islamic Banking Institutions Malaysia (AIBIM)
* Bahrain Association of Banks (BAB)
* Hawkamah Institute for Corporate Governance
* Statistical Economic and Social Research Center for Islamic Countries
(SESRIC)
* Abu Dhabi Islamic Bank
* Ahli United Bank
* Al Baraka Bank
* Al Hilal Bank
* Alinma Bank
* Al Salam Bank
* Bahrain Islamic Bank
* Barwa Bank
* Dubai Islamic Bank
* Ithmaar Bank
* Kuwait Finance House
* Masraf Al Rayan
* Noor Islamic Bank
* National Commercial Bank
* Qatar Islamic Bank
* Sharjah Islamic Bank
* CIMB Islamic Bank
* RHB Islamic Bank
* Bank Muamalat Malaysia
Members of the Shariah Committee are:
* Sheikh Yusuf Talal Delorenzo (Chairman)
* Dr. Abdul Rahim Sultan AlOlama
* Dr. Mohammad Daud Bakar
* Sheikh Muddassir Siddiqui
About Thomson Reuters
Thomson Reuters is the world's leading source of intelligent information for
businesses and professionals. We combine industry expertise with innovative
technology to deliver critical information to leading decision makers in the
financial, legal, tax and accounting, healthcare and science and media markets,
powered by the world's most trusted news organization. With headquarters in New
York and major operations in London and Eagan, Minnesota, Thomson Reuters
employs more than 55,000 people and operates in over 100 countries. For more
information, go towww.thomsonreuters.com.
CONTACTS
Kate Reid
PR Director, Thomson Reuters
+44 20 7542 2215
+44 7917 200 737
kate.reid(at)thomsonreuters.com
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Thomson Reuters Corporation via Thomson Reuters ONE
[HUG#1565446]
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Datum: 22.11.2011 - 08:00 Uhr
Sprache: Deutsch
News-ID 89998
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