IFSB to set up central bank for liquidity growth

This is the second meeting attended by Nigeria since the CBN became a full member of the Council in January 2009.

According to a statement from CBN, the establishment of inter–governmental special purpose entity is to be achieved by facilitating cross-border liquidity management among non-interest financial institutions through the acquisition and maintenance of global pool of sovereign assets.

According to the council, such sovereign assets must be suitable for use as underlying asset on which it would benchmark the issuance of highly rated Islamic bonds to be traded globally. Other areas which the council deliberated and agreed upon include the issue of capacity building among the operators and regulatory authorities with a view to strengthening their operations and ensuring efficient service delivery in the industry.

The IFSB is an international standard setting body for the Islamic financial services industry, with membership comprising of regulatory and supervisory agencies across the world, including the World Bank, the International Monetary Fund (IMF), Islamic Development Bank (IDB) and Bank for International Settlement (BIS).