PENGURUSAN KECAIRAN INSTITUSI KEWANGAN ISLAM (IKI) DI MALAYSIA: ANALISIS PERBANDINGAN ANTARA KEPERLUAN INTERNATIONAL ISLAMIC LIQUIDITY MANAGEMENT (IILM) BERBANDING PASARAN WANG ANTARA BANK SECARA ISLAM (IIMM) (LIQUIDITY MANAGEMENT OF ISLAMIC FINANCE MANAGEMENT IN MALAYSIA: COMPARATIVE ANALYSIS BETWEEN INTERNATIONAL ISLAMIC LIQUIDITY MANAGEMENT (IILM) AND ISLAMIC INTERBANK MONEY MARKET)

Abstract

Malaysia is a country that leads in the Islamic Financial sector. In fact, Malaysia is the first country that has established Islamic Interbank Money Market (IIMM) while banks in other countries only provide high liquidity instruments without platform. However, in 2010, International Islamic Liquidity Management (IILM) has been established to manage the liquidity globally. IILM is led by Malaysia because of its authority in Islamic Finance. Since its establishment, IILM manages the global liquidity through short term wakalah sukuk only. Thus, why is IILM needed if it only issues one instrument? In comparison, IIMM have many high liquidity instruments to meet the needs of IFI in Malaysia. In fact, IIMM is a strong platform for managing liquidity in Malaysia. By using the interview and longitudinal method, the researchers found out that IILM does not threaten the preexisting IIMM in Malaysia because both IILM and IIMM have different missions and visions. Therefore, IIMM is needed in Malaysia. However, IILM is not only needed in Malaysia but also globally. The world acceptance on the IILM’s short-term instrument would help in solving the issues regarding the excess liquidity in IFI. However, IILM still have to make various improvements to achieve its own objectives.