:London :Dubai :Kuala Lumpur :New York
Sign in   |   Register


image Introduction to Risk Management in Islamic Banking – Basel II Compliance.
Event date: - 2012-12-07
image 12th Annual Islamic Finance Summit
Event date: - 2013-02-26
image The 3rd PPP MENA Conference
Event date: - 2013-03-17
image Islamic Finance Forum Europe
Event date: - 2013-05-28
  More Events    Add Event


Enter your keyword  

Follow Us

News by Topics

Banking is a business where depositors are normally free to deposit and withdraw their savings according to their preferences and financial plans. This unpredictability of behaviour put the managers under intense pressure and requires high level of skill to achieve optimality of resources at hand.

Traditionally banks manage their liquidity by investing in short term interest based securities which is not the cup of tea for an Islamic banking. Funds must emanate from a Shariah-compliant source and they need to be taken up by a Shariah-compliant source. In some places, there is no infrastructure in place to ensure that the funds are ‘clean’ Shariah-compliant. Islamic banking industry including Islamic banking windows face seriously the challenge of shortage in liquidity management instruments. For a while Islamic banks claim that they have strong capital base but is it enough? A strong capital base must be supported by strong liquidity management instruments.

Islamic liquidity market and Islamic capital markets are important for a resilient and sustainable Islamic finance system. Inter-bank market, debt instruments eg certificates of deposits (CDs), different types of bonds are some of the instruments available to conventional banks to manage their liquidity but many of them wouldn’t be available in Islamic banking. Analysing the issue partly Islamic banks, facing the challenge in their day-to-day liquidity management because of the lack of a comprehensive Islamic interbank money market. Is the lack of comprehensive Islamic money market related to Shariah governance standards? It seems that the standards are there, but they are not being paid proper attention by Shariah boards and individual Islamic Finance institutions. Some of Liquidity issues of Islamic banks could be related to lack of instruments, non-standard documents and processes, counter-party or credit risk.

One of the key issues of liquidity management could be reviewed more effectively by enhancing the role of the board, the Shariah Committee and the management in relation to Shariah matters, including enhancing the relevant key organs having the responsibility to execute the Shariah compliance , introducing new instruments and research functions aimed at the attainment of a Shariah-based operating environment. Farhad Reyazat
Share |


starting your own business with B&F Switching to B and f services


image How credit risk is associated with key macroeconom ...
Recently published article by Hamid A.H. Al-Wesabi & Nor Hayati Ahmad from University Utara Malaysia is answering the qu ...
image London can lead world as an Islamic Finance hub ...
Financial Time published the following article from George Osborne (UK chancellor of the exchequer) regarding this week ...
image The world bank will open its first centre on Islam ...
The world bank will open its first centre on Islamic Finance at Borsa Istanbul premises, the exchange market said Monda ...
image Busy November for Islamic Finance ...
Islamic Finance Calendar for November 2013: 1. The 9th World Islamic Economic Forum held in:London Date: MONDAY, NOV 4 ...
image Family Farming: The Key to Alleviating Hunger and ...
After decades of failed attempts to eradicate hunger, development agencies, internation ...

Share |

Company Recomendation of the week
Hyde Park Executive Meetings   
Hyde Park Executive is situated in the West End of London, the area is home to major corporate headquarters, real estate businesses, hedge funds, wealth managers and embassy offices in the neighbourhood of Mayfair, Oxford Street, Park Lane, and Knightsbridge. Our meeting rooms are based on 12th floor and all benefit from having natural daylight – after all nobody wants to be stuck in a windowless box all day.Our service is all about flexibility and this extends to our booking options. It could be a one-hour catch-up in a meeting zone, half-day, 24-hours or an entirely bespoke package. For an informal meeting, you’re welcome to catch-up with a coffee in reception or over lunch in our stunning Dubai room. www.hydeparkexecutive.com

Current issue

''The principle of Islamic Finance is about transparency, ethics and fairness, as well as promotin ...
main cover islamic


Subscribe Digital

  Current Issue     Trial Version     Digital     Archive  

Click to launch the full edition in a new window
Online Publishing from YUDU

Latest Books

image Islamic Branding and Marketing: Creating a Global Islamic Business
Author/Publisher: - Dr. Paul Temporal
image Understanding Islamic Banking: The Value Proposition That Transcends Cultures
Author/Publisher: - Joseph A. DiVanna
image Critical Issues on Islamic Banking and Financial Markets: Islamic Economics, Banking and Finance, Investments, Takaful and Financial Planning
Author/Publisher: - Saiful Azhar Rosly
image Product Development in Islamic Banks (Edinburgh Guides to Islamic Finance)
Author/Publisher: - Habib Ahmed
image Frequently Asked Questions in Islamic Finance (The Wiley Finance Series)
Author/Publisher: - Brian Kettell
  Buy Now      More Books  

QUOTE of the week

 Islamic finance is becoming an integral part of the global finance industry and has taken its roots in almost all of the Muslim countries but has also been under discussion and penetration in selective Western and Far Eastern jurisdictions

Moinuddin Malim, CEO, Mashreq Al Islami

GCB    Business Media Group - the Publisher    B&F Services Ltd.