Applying liquidity rules to sharia banking
The financing of trade in goods and services, and the financing of investments in real assets dominates the provision of finance by sharia banks. This is due in part to the nature of sharia-compliant finance, which places the funding of transactions in the real economy, that is funding related to investments in equipment, buildings and so on, or in trade finance, at the centre of the banking system. In part it is also because sharia banks primarily operate in emerging economies where the
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