The issuance of sovereign sukuk has provided the long awaited benchmark to Islamic financial institutions, which previously
relied on interest rate benchmark such as KIBOR to determine profit rates. Furthermore, the development of government sukuk market has facilitated liquidity management for Islamic financial institutions in addition to improving their asset quality.
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com