These new members, announced at the 8th Annual World Islamic Funds and Financial Markets Conference (WIFFMC 2012) in Bahrain, add credence to IIBR as a viable alternative for pricing Islamic instruments and establishing Islamic finance authenticity, said a statement from the leading source of intelligent information for businesses.
Launched in November last year as the world's first Islamic finance benchmark rate, IIBR is designed to provide an objective and dedicated indicator for the average expected return on Shariah-compliant short-term interbank funding and an alternative to the conventional interest-based benchmarks used for mainstream financem, Reuters said.
Islamic markets will be able to rely on the IIBR and it will become an international reference rate for both conventional and Sharia compliant transactions.
Our aim is to provide an IIBR that is reliable, timely, representative of market conditions, transparent in its construction and accepted as the market reference.
Its creators hope IIBR will be used as a basis for pricing a wide range of Islamic financial instruments, including sukuk (Islamic bonds), corporate financing and common Islamic treasury agreements.
IIBR addresses a source of tension within the Islamic finance industry, which is estimated to have reached $1 trillion in assets: Islam forbids the use of interest in any transaction, but the industry has long used the London Interbank Offered Rate (LIBOR), a system of interest rates, as a benchmark in the absence of sharia-compliant alternatives.
On October 4, 1998, a former IIBR
biologist told the London Sunday Times: "There is hardly a single known or unknown form of chemical or biological weapon .
IIBR has seen over 20 Islamic finance institutions come together to create a proprietary Islamic pricing benchmark.
But right now, this is just the beginning of an evolution for IIBR.
Established in co-operation with the Islamic Development Bank, Accounting and Auditing Organisation for Islamic Financial Institutions, the Bahrain Association of Banks, Hawkamah Institute for Corporate Governance and a number of major Islamic banks, the IIBR
harnesses Thomson Reuters global benchmark fixings infrastructure which is used to compile over 100 fixings around the world.
Launched in November 2011 as the world's first Islamic finance benchmark rate, IIBR is designed to provide an objective and dedicated indicator for the average expected return on Shari'ah-compliant short-term interbank funding and an alternative to the conventional interest-based benchmarks used for mainstream finance.
Akram Laldin, executive director of the International Shari'ah Research Academy now both join the IIBR Shari'ah Committee, with Justice Taqi Usmani taking the role of Chairman to continue the work of Sheikh Yusuf Talal Delorenzo who remains a committee member.