Bahrain to set up liquidity management centre

BAHRAIN - Bahrain plans to establish a US$50 million liquidity management centre (LMC) to help meet the needs of Islamic banks and financial institutions.

A central bank official said that Ernst and Young Bahrain had been appointed as financial advisor for the first LMC in an Islamic state.

Bankers say that one of the major problems facing around 200 Islamic banks and finance houses serving 1.2 billion Muslims globally is the lack of means to manage their day-to-day liquidity requirements.