MALAYSIA PICKED TO HOST ISLAMIC LIQUIDITY MANAGEMENT BODY

KUALA LUMPUR, Oct 8 (Bernama) -- Malaysia has been selected to be the host
country for the International Islamic Liquidity Management Corp (IILM).

In a statement, the Islamic Financial Services Board (IFSB) said the board's
members signed a memorandum of participation to establish the corporation on the
sidelines of the International Monetary Fund-World Bank meetings in Washington
Friday.

"The official establishment of the IILM is set to take place on Oct 25, 2010 in
Kuala Lumpur," it said.

IFSB said the primary objective of the corporation was to issue
syariah-compliant financial instruments in order to facilitate more efficient and
effective liquidity management solutions for institutions offering Islamic financial
services.

It also aimed to facilitate greater investment flows of syariah-compliant
instruments across borders, it said.

"This initiative is in line with the IFSB mandates to enhance and coordinate
initiatives to develop instruments and procedures for the efficient operations
and risk management and encourage cooperation among members in developing the
Islamic financial services industry," it said.

It said the establishment of the IILM was a major breakthrough in the Islamic
financial industry development.

"It will provide liquid short-term syariah-compliant instruments that would
promote further the competitiveness and resilience of Islamic financial services
globally," it said.
-- BERNAMA