Islamic banks and central banking

Arshadur Rahman ()
Additional contact information
Arshadur Rahman: Bank of England

Bank of England Quarterly Bulletin, 2017, vol. 57, issue 3, 156-169

Abstract: ​Islamic banking is a relatively young but growing sector of the broader financial services industry. Numerous banks around the world offer Islamic, or Shari’ah compliant, financial products. •Some central banks offer Shari’ah compliant liquidity facilities to Islamic banks, affording them similar flexibility to other firms in managing their liquidity. Such facilities avoid the payment or receipt of interest, which is otherwise the most common basis for operating a liquidity facility. •The Bank is establishing a Shari’ah compliant facility, specifically a deposit facility to allow UK Islamic banks to hold central bank assets as part of their liquid assets buffer. This article explores the various ways in which this can be done, along with the model the Bank has chosen to adopt.

Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.bankofengland.co.uk/-/media/boe/files/ ... 9D10E21543B7B7013C1C Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:boe:qbullt:0227

Access Statistics for this article

Bank of England Quarterly Bulletin is currently edited by Lindsey Fowler

More articles in Bank of England Quarterly Bulletin from Bank of England Publications Group Bank of England Threadneedle Street London EC2R 8AH. Contact information at EDIRC.
Bibliographic data for series maintained by Publications Group ().