BoE sketches proposals for sharia-compliant facilities
Options for deposit facilities include wakalah or commodity murabahah
The Bank of England (BoE) unveiled proposals for sharia-compliant liquidity facilities today (February 12), in a first step towards putting the UK's Islamic banks on a more equal footing with other banks.
The BoE's research in the latter half of 2015 has led it to suggest two possible designs for a deposit facility, and two more for a form of liquidity insurance.
The sharia ban on riba, or predefined payments, most notably interest, makes it tricky for Islamic banks to manage their liquidity
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