Central Bank of Bahrain launches Islamic liquidity facility

central-bank-of-bahrain
The Central Bank of Bahrain

The Central Bank of Bahrain has launched an Islamic liquidity facility aimed at allowing banks to achieve a sharia-compliant return on deposits of excess reserves.

Retail Islamic banks may now deposit reserves at the central bank under a ‘wakalah' agreement. This appoints the central bank as an agent to invest their cash, with the resulting profits shared between them.

Under the facility, the central bank invests in a pre-agreed portfolio, in this case sukuk – a sharia-compliant asset roughly an

To continue reading...

You must be signed in to use this feature.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: