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Sukuk will feature in liquidity guidance given to Islamic banks -IFSB 

June 24, 2014
Bernardo Vizcaino, Reuters

The Malaysia-based Islamic Financial Services Board (IFSB) will issue draft guidance by year-end on how Islamic banks, which face a lack of short-term funding instruments, can use sukuk as a key tool for meeting the liquidity requirements of Basel III.

Guidance from the IFSB, one of the main standard-setting bodies for Islamic finance, would help Islamic banks manage their short-term funding needs as they take a greater share of the banking sector in several Muslim-majority countries.

Banks across the Gulf have been waiting for regulatory guidance on how debt instruments such as sukuk will be treated under Basel III, a set of stricter banking rules which are being phased in around the world over the next several years.

Read More: Reuters

 
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