Islamic interbank benchmark launched

A group of Islamic banks and financial industry associations launched the industry's first international Islamic interbank rate, presenting a Sharia-compliant alternative to traditional interest-based benchmarks.
The Islamic Interbank Benchmark Rate (IIBR) is the average expected return on Sharia-compliant, short-term interbank funding.
IIBR addresses a source of tension within the Islamic finance industry, which is evaluated 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.

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