IslamicFinance.de

Liquidity management has become easier for Islamic banking institutions as well as for the State Bank with the Sukuk-backed open market operations gaining momentum. The central bank has so far conducted about a dozen Sukuk OMOs since the introduction of this concept in October 2014 and IBIs have responded to it in good spirit. Central bankers say holding of OMOs using Islamic financial concept of Bai-Muajjal is but one component of a broader plan for better liquidity management. The plan, drawn up after seeking inputs from stakeholders, also envisages establishment of a discount window for IBIs later this year. But in addition to several other things, IBI’s want of interest in human resource building also impedes fast-tracking of the planned moves for this purpose.