More sharia-compliant instruments would aid liquidity management, IMF paper argues

gulfstates
Research focuses on Gulf Cooperation Council members

A lack of sharia-compliant financial instruments has led Islamic banks to hold a "significant amount" of cash reserves, making it harder for central banks to conduct monetary operations with them, according a working paper published by the International Monetary Fund.

"Active efforts are needed to develop sharia-compliant instruments to improve the efficiency of monetary operations," Ritu Basu, Ananthakrishnan Prasad and Sergio Rodriguez say, in Monetary operations and Islamic banking in the GCC

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

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 individual account

.