The first global Shariah-compliant money-market securities may be sold early next year, providing Islamic banks with more opportunities to invest reserves and boost profits.
The bills to be issued by Kuala Lumpur-based International Islamic Liquidity Management Corp. will help improve investment across borders, according to an Oct. 7 statement from the Islamic Financial Services Board, a standard-setting body. The new organization will start selling the notes on a regular basis from “early next year,” Zeti Akhtar Aziz, Malaysia’s central bank governor, said in an interview in Washington on Oct. 10.
IFSB is stepping up its efforts to bolster money markets after Lehman Brothers Holdings Inc. went bankrupt in September 2008, causing a global credit crunch. Dubai World roiled markets last November seeking to delay payments on $24.9 billion of debt. The Shariah-compliant products will fill a hole in the $1 trillion industry, Shehzad Janab, head of asset management at Daman Investments PSC, said in an interview yesterday.
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