IILM - International Islamic Liquidity Management’s Post

Could BRI and BSI lead Indonesia into the global bullion banking market by 2025? Indonesia’s Minister of Economic Affairs, Airlangga Hartarto, has proposed transforming major banks like PT. Bank Rakyat Indonesia (Tbk) (BRI) and PT Bank Syariah Indonesia (BSI) into bullion banks by 2025. This initiative aims to integrate the country’s significant gold reserves into financial systems, boosting the economy and attracting investment. With the Financial Services Authority already issuing supportive regulations, the plan could elevate Indonesia’s role in the global gold market, strengthening financial resilience and supporting industries like jewelry. Could this gold-backed banking initiative reshape Indonesia’s economic future? Check out the full news in the comment below! #BullionBanking #IndonesiaEconomy #GoldReserves #FinancialInnovation #BRI

Integrating Maqasid Shariah and Value-Based Intermediation (VBI) in Islamic Banking 🌍📈 Value-Based Intermediation (VBI), introduced by Bank Negara Malaysia (BNM), aims to go beyond Shariah compliance. It focuses on creating positive, sustainable impacts for the economy, community, and environment while ensuring long-term returns for shareholders. VBI is rooted in Maqasid Shariah, the objectives of Islamic law, which seek to preserve wealth, faith, lives, intellect, and posterity. In Islamic finance, this means promoting fair wealth generation, accumulation, and distribution. What sets VBI apart is its alignment with Sustainable Development Goals (SDGs). It combines the objectives of Islamic law with global sustainability efforts, driving both ethical finance and social responsibility. By integrating Maqasid Shariah and VBI, Islamic banks can ensure that their operations benefit society, not just shareholders. This approach enhances their accountability, supports economic development, and promotes social justice. #IslamicBanking #MaqasidShariah #ValueBasedIntermediation #Sustainability #SocialImpact #IslamicFinance #ShariahCompliance

Bank Negara Malaysia just released its annual report this morning and here's a few highlights: - In 2023, the Malaysian economy demonstrated resilience despite external challenges, with GDP growing by 3.7%. - BNM focused on supporting economic reform, especially for MSMEs, through improved special funds and social finance initiatives. - They promoted green and sustainable finance in the Islamic finance sector and worked on enhancing climate resilience within the financial system. - Combatting online financial fraud was a priority, with efforts to improve fund tracing and raise awareness. - BNM launched the Financial Inclusion Framework 2023-2026 to improve access to financial services. What are your thoughts on what the Central Bank has shared? Are there more that can (or should) be done? https://lnkd.in/d5qiq_6u #banknegaramalaysia #bnm #centralbank #annualreport #ar #malaysia #malaysiagdp #gdp #msme #greenfinance #sustainablefinance #financialfraud #financialinclusion

AHP successfully represented Deutsche Bank, Dubai Islamic Bank, J.P. Morgan, KFH Capital, and Standard Chartered Bank as Joint Lead Managers and Joint Bookrunners in the issuance of the USD2.75 billion global Sukuk comprising of USD1.1 billion 5.5-year, USD900 million 10-year, and USD750 million 30-year Reg S/144A due 2030, 2034 and 2054 respectively (the “Global Sukuk”) by the Republic of Indonesia (“Republic”), through Perusahaan Penerbit SBSN Indonesia III. This marks the fourth issuance by the Republic in the global bond market in USD currency during 2024 and also demonstrates the continued high interest of investors in government bond issuances. The issuance of the Global Sukuk has settled on 25 November 2024 and listed on Singapore Exchange Securities Trading Limited and NASDAQ Dubai (dual listing). The Global Sukuk is structured based on the Shari’a principle of Wakala and has obtained approval from DSN MUI as well as from the Joint Lead Managers and Joint Bookrunners’ respective Sharia Committee. The AHP team was led by M. Renaldi Zulkarnain and supported by Aji Suryo Utomo and Bintang Setiadi Pratama. This transaction demonstrates AHP's continued commitment to excellence in shariah financing transactions. #AHP #AHPDealAnnouncement #GovernmentSukuk #Indonesia #GlobalSukuk #DualListing #LawyersWhoKnowAsia

INDONESIA: The Financial Services Authority of Indonesia, or Otoritas Jasa Keuangan (OJK), has expressed its support for Muhammadiyah’s potential move to establish or acquire an Islamic bank, aligning with the regulator’s goal to promote a robust Islamic banking sector in the country, it confirmed with IFN......

ARTICLE 6 𝗜𝗻𝗱𝗼𝗻𝗲𝘀𝗶𝗮𝗻 𝗜𝘀𝗹𝗮𝗺𝗶𝗰 𝗕𝗮𝗻𝗸𝘀’ 𝗣𝗼𝘀𝘁-𝗣𝗮𝗻𝗱𝗲𝗺𝗶𝗰 𝗣𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗔𝗹𝗶𝗴𝗻𝗺𝗲𝗻𝘁 𝘄𝗶𝘁𝗵 𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗚𝗼𝗮𝗹𝘀 This article examines the challenges Islamic banks face regarding profitability, specifically in Indonesia. It aims to bridge the gap between profitability optimisation and sustainable financing in Islamic banking. Utilising linear programming combined with financial analysis, this research presents three innovative strategies to enhance income: maximising financing income by product type, optimising financing by business sector, and minimising deposit costs by product type. By testing model sensitivity, the study simulates the effects of financing growth on profitability and sustainability goals. It offers insights applicable to similar markets worldwide. Full article can be found at: DOI https://lnkd.in/gByB8Ecx #INCEIFuniversity #ISRArmc #ijifsd #sustainability #IslamicBanks #FinancialAnalysis #IslamicBanks #Shariah #Indonesia

Fitch raised Indonesia’s bank OE score to 'bbb-' to reflect receding asset-quality risks amid a strong post-Covid recovery. Sustained growth, economic stability and low system leverage keep banks’ business prospects favourable in the medium term. Read more: https://ow.ly/62vi50RCYa5 #asiapacific #indonesia #banks #economy #assetmanagement

To realise the vision of making Mizuho Malaysia the Islamic finance hub of Mizuho Group in the Asia Pacific region, positive development such as this is crucial so that Mizuho Malaysia continues to be competitive and relevant in the market that we operate in. Opportunities don’t just happen, you create them.

Daily #InterestRates decision recap: Bank Indonesia unexpectedly raises rates. The decision was to strengthens Rupiah stability against the impact of deteriorating global risk and as a pre-emptive and forward-looking measure to maintain inflation within the 2.5%±1% target corridor in 2024 and 2025 in line with the pro-stability monetary policy stance. Increase 25 bps: Bank of Indonesia - 6.25% https://lnkd.in/dEy7DC_n #Centralbanks #Indonesia #wproconnect #centralbank

Join leading experts Nitish Bhojnagarwala, Ahmet Tacer, Frederik Wijsenbeek, Dr Muhammad Issyam Ismail, and Yasir Gorpe as they delve into the opportunities and challenges for Malaysia as an international hub for Islamic capital markets. This session will explore crucial topics such as enhancing the performance of Malaysian Islamic capital markets and Sukuk, the re-emergence of the regulatory capital Sukuk market, and the role of high-quality liquid assets in building a unique yield curve for Islamic issuers. Don’t miss this engaging discussion on the future of Islamic capital markets and the potential of tokenization and sustainable Sukuk! https://lnkd.in/d3p6zjQ8 #IFNAsiaForum2024 #REDmoney #IFN #IslamicFinance #CapitalMarkets #Sukuk #Malaysia #Sustainability