Innovation in Islamic Liquidity Management Report 2017: Transforming Islamic Finance Business

Innovation in Islamic Liquidity Management Report 2017: Transforming Islamic Finance Business

The 75% growth in assets in six years will be all the more significant in a slow global growth environment, while facing challenges associated with Basel III implementation characteristic of the post-crisis environment. These regulations impact many aspects of banking, which accounts for three-quarters of Islamic finance assets, but they particularly complicate Islamic liquidity management.

The dearth of Islamic liquidity management instruments has been a challenge in Islamic banking throughout its 40-year growth and maturity. Relatively few instruments have been able to meet both the industry’s needs and its stakeholders’ full expectations. As a result, Islamic banks in the GCC today hold 8.8% of their assets in cash and equivalents and 9.8% of their assets in placements at other financial institutions. Islamic banks in Bahrain hold over 12% of their assets in the form of cash while banks in Kuwait hold nearly 20% of their assets as placements with other banks.

Access the full report to find out:

- Islamic Finance Market Outlook;

- Sukuk Market Outlook;

- Current Islamic Liquidity Management;

- Commodity Murabaha and the Islamic Interbank market in the GCC; and

- The NBC Sukuk Trading Platform and Proposition.