The recent Global Financial Crisis (GFC) stresses the importance of liquidity management in international financial markets during both stress and normal conditions. A robust and stable liquidity management framework would be one of the key dynamics in shaping the future growth of the Islamic finance industry, especially on how such framework addresses the current outstanding issues related to liquidity management, at both the practical and regulatory levels. The IFSB-INCEIF Executive Forum, in its 7th edition, addresses this important issue with the theme “Building Momentum for Islamic Liquidity Management”. The Executive Forum aims to provide new insights on the interactions between internal liquidity and external funds (e.g. profit-sharing investment accounts, Sukūk, etc.) as well as show how these interactions affect both the way an IIFS contemplates its financial decisions, and how regulators formulate appropriate liquidity risk management policies.
This Executive Forum aims to bring together global leaders from among the market players, regulators as well as the academic domain to discuss a wide spectrum of liquidity management issues. The speakers will provide their expertise — through panel sessions, discussion groups, and practical case studies — on the ongoing opportunities and challenges in the existing infrastructure for managing liquidity risks in Islamic finance. The Executive Forum will also include deliberations on the new developments in the regulatory landscape, with a special focus on the emerging liquidity risk management requirements, such as the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR), in addition to how these requirements can encompass Islamic finance specificities. Furthermore, the participants will also be exposed to the liquidity risk management infrastructure in Islamic finance, especially to Sharī`ah-complaint High Quality Liquid Assets (HQLA), Sharī`ah-compliant Deposit Insurance and Lender of Last Resort (LOLR). A key feature of the Executive Forum is a Panel Discussion where participants have the opportunity to share information and experiences from both supervisors and market players on the challenges and strategies for developing an effective Islamic liquidity management framework.
For more information on the Executive Forum, please email Mr. Hamizi Hamzah at [email protected]
Programme – Event Session(s)| Date | Time | Topics |
|---|---|---|
| Day 1 03/06/2015 | 08:30 – 09:30 | Morning Coffee and Registration |
| 09:30 – 09:45 | Opening and Welcoming Remarks | |
| 09:45 – 11:00 | Session 1: The Role of an International Liquidity Architecture in a Global Financial Crisis The Importance of Managing Liquidity in a Global Financial Crisis Causes of Liquidity Stress During a Global Financial Crisis Opportunities and Challenges in the Existing Liquidity Risk Management Framework | |
| 11:00 – 11:30 | Group Photo and Coffee Break | |
| 11:30 – 13:00 | Session 2: Liquidity Risk Management Infrastructure: The Regulators Role Regulatory Responsibilities in Developing An Appropriate Liquidity Risk Framework Regulatory Roles in Providing Liquidity During Market Stress Contingency Planning and the Development of Liquidity Infrastructure | |
| 13:00 – 14:00 | Lunch and Prayer | |
| 14:00 – 15:30 | Session 3: Global Liquidity Risk Management Requirements: Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) and their Compatibility with Institutions offerings Islamic Financial Services (IIFS) Recent Global Regulatory Developments in Liquidity Risk Management Incorporating Global Standards into National Regulations Assessing the Capacity of IIFS to Adapt New Liquidity Risk Management Requirements | |
| 15:30 – 16:00 | Coffee Break | |
| 16:00 – 17:30 | Session 4: Ensuring a Robust Liquidity Management Framework: Key Issues Sharī`ah-complaint High Quality Liquid Assets (HQLA) and Secondary Market Facilities Sharī`ah-compliant Safety Nets Sharī`ah-compliant Lender of Last Resort (SLOLR) | |
| Day 2 04/06/2015 | 08:30 – 09:30 | Morning Coffee |
| 09:30 – 11:00 | Session 5: Resilience of the Current Liquidity Management Instruments in the IFSI Commodity Murābahah Transaction (CMT): Practical and Sharī`ah issues Short-term Liquidity Sukūk: Theoretical Aspects and Practical Concerns Islamic Inter-Bank Money Market: Identifying Current Issues and Future Challenges | |
| 11:00 – 11:30 | Coffee Break | |
| 11:30 – 13:00 | Session 6: Liquidity Risk Management Mechanisms: Monitoring, Supervising and Stress Testing Macro Stress Tests: Macro Prudential Toolkit Current Practices and Emerging Trends in Liquidity Risk Supervision Bottom-up Liquidity Stress Tests and Weaknesses in Wholesale Funding among IIFS | |
| 13:00 – 14:00 | Lunch and Prayer | |
| 14:00 – 16:00 | Session 7: Panel Discussion on Developing a Global Islamic Liquidity Management Framework: A Practical Approach The Case of IILM: Sukūk Structure and Issuance, and Challenges Ahead Practical Issues: Sharī`ah-complaint HQLA, treatment of PSIA and Sharī`ah-compliant repo mechanisms Monitoring Tools and Challenges for Efficient Cross-border Liquidity Risk Management | |
| 16:00 – 16:30 | Closing & Certificate Giving Ceremony | |
| 16:30 – 17:00 | Coffee Break |
