Arab Monetary Fund calls for central banks to step up in #Islamicfinance
Central banks need to have a stronger role in setting regulations for the region’s Islamic banks. Abdulrahman Al Hamidy, the head of the Arab Monetary Fund, said regulators need to introduce new liquidity management tools. The region’s central banks have moved to offer Islamic banks new, Sharia-compliant liquidity facilities to help shore up their short-term financial positions. The UAE Central Bank introduced a Sharia-compliant short-term lending facility in March last year. It allows banks to sell and repurchase Sharia-compliant securities overnight at profit.
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