BoE prepares to launch sharia-compliant liquidity facility
Special-purpose vehicle will be structured as a ‘wakalah’ or fund-based liquidity facility
The Bank of England (BoE) is set to become the first western central bank to offer a liquidity facility that complies with the tenets of Islamic banking.
The central bank would launch its long-awaited sharia-compliant facility in the first quarter of 2021, executive director Andrew Hauser said on December 2.
The UK has four exclusively Islamic banks, with assets worth around £5 billion ($6.7 billion), as well as several conventional banks that offer sharia-compliant services.
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