National and Global Islamic Financial Architecture:
Problems and Possible Solutions for the OIC Member Countries
30
Table ‎2.3: Architectural Features and Islamic Infrastructure Institutions
Architectural
Features
Infrastructure Institutions
Legal
Infrastructure
 International Islamic Center for Reconciliation and Commercial
Arbitration (IICRCA), (2004) Dubai, UAE (alternative dispute resolution
platform for Islamic finance using Islamic law)
Regulatory
Standards
 Islamic Financial Services Board (IFSB), (2002) Kuala Lumpur,
Malaysia (standard-setting body for regulations and supervision of
Islamic banking, takaful and Islamic capital markets)
 International Islamic Financial Markets (IIFM), (2002) Bahrain
(develop contracts for Islamic capital markets, corporate finance and
trade finance)
Shariah related  Islamic Fiqh Academy (IsFA), (1981) Jeddah, Saudi Arabia (issue
Islamic legal resolutions on different issues including Islamic finance)
 Accounting & Auditing Organization for Islamic Financial
Institutions (AAOIFI), (1991) Bahrain (develop Shariah standards for
Islamic finance)
Liquidity
Infrastructure
 Liquidity Management Center (LMC), (2002) Bahrain (develop Islamic
inter-bank money markets and liquidity instruments)
 International Islamic Liquidity Management Corporation ( IILM),
(2010) Kuala Lumpur, Malaysia (develop and issue short-term Islamic
instrument for cross-border liquidity management)
Information
Infrastructure
 Accounting & Auditing Organization for Islamic Financial
Institutions (AAOIFI), (1991) Bahrain (develop accounting and auditing
standards for Islamic finance)
 Islamic International Rating Agency (IIRA) , (2002) Bahrain (provide
credit and Shariah ratings)
Knowledge and
Human Capital
 Islamic Research & Training Institute (IRTI), (1983) Jeddah, Saudi
Arabia (promote research & training in Islamic economics & finance)
 World Bank Global Islamic Finance Development Center (GIFDC),
(2013) Istanbul, Turkey (conduct research, training, advisory services for
development of Islamic finance)
Facilitating
Institutions
 Islamic Development Bank (IDB), (1975) Jeddah, Saudi Arabia
(promote economic development in member countries and Islamic
finance)
 General Council of Islamic Banks and Financial Institutions
(CIBAFI), (2001) Bahrain (trade association of Islamic financial
institutions to enhance best practices)
Source: Webpages of organizations.
Liquidity Infrastructure
The Liquidity Management Centre (LMC) was established in Bahrain in 2002 to help Islamic
financial institutions manage their liquidity mismatch through money-markets and short and
medium term liquid investments by providing short and medium term Shariah compliant
instruments.
The International Islamic Liquidity Management Corp. (IILM) was established in 2010 in
Malaysia to create and issue short-term Shariah-compliant financial instruments to facilitate
effective cross-border Islamic liquidity management. The goal of IILM is also to foster