Staff View: Towards the development of Sharī'ah compliant high quality liquid assets for Islamic financial institutions

Towards the development of Sharī'ah compliant high quality liquid assets for Islamic financial institutions

Islamic banks are required to be able to access and hold sufficientlevels of High Quality Liquid Assets (HQLA) as part of Basel IIIrequirements. Such HQLA are specifically meant to allow theIslamic banks to raise funds in money markets in the event ofliquidity shortage or in some cases for the fundi...

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Main Authors:	Engku Ali, Engku Rabiah Adawiah, Oseni, Umar Aimhanosi, Ellias, Muhd Ramadhan Fitri, Haron, Muhamad Nasir
Format:	Article
Language:	English English English
Published:	IIUM Press, International Islamic University Malaysia 2017
Subjects:	HB126.4 Islamic Economics HG3368 Islamic Banking and Finance HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/63106/1/63105_Towards%20providing%20the%20best%20Shar%C4%AB%27ah_scopus.pdf http://irep.iium.edu.my/63106/7/63106_Towards%20the%20development%20of%20Shar%C4%AB%27ah.pdf http://irep.iium.edu.my/63106/13/63106_Towards%20the%20development%20of%20Shar%C4%AB%27ah%20compliant_WOS.pdf http://irep.iium.edu.my/63106/ http://journals.iium.edu.my/shajarah/index.php/shaj/article/view/619
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spelling	my.iium.irep.631062019-08-20T18:06:34Z http://irep.iium.edu.my/63106/ Towards the development of Sharī'ah compliant high quality liquid assets for Islamic financial institutions Engku Ali, Engku Rabiah Adawiah Oseni, Umar Aimhanosi Ellias, Muhd Ramadhan Fitri Haron, Muhamad Nasir HB126.4 Islamic Economics HG3368 Islamic Banking and Finance HG4001 Financial management. Business finance. Corporation finance. Islamic banks are required to be able to access and hold sufficientlevels of High Quality Liquid Assets (HQLA) as part of Basel IIIrequirements. Such HQLA are specifically meant to allow theIslamic banks to raise funds in money markets in the event ofliquidity shortage or in some cases for the funding of new profitableinvestments. Against this backdrop, this study examines existingefforts in developing Sharī’ah-compliant HQLA and the challengesIslamic financial institutions are facing in assessing such liquidinstruments. Beside the laudable efforts of a policy-drivensupranational institution in developing Sharī’ah-compliant HQLA,there has not been much effort in the global Islamic finance industryto develop more HQLAs. As a matter of fact, it is the overarchingdearth of such Sharī’ah compliant HQLA for liquidity managementthat led the Bank of England to commence work on the feasibility ofintroducing central bank liquidity facilities such as the proposedSharī’ah compliant fund based deposit in 2015 which is expected tobe ready for implementation by Spring 2018. This study also findsthat experts have considered the potential of gold as HQLA forbank’s liquidity management IIUM Press, International Islamic University Malaysia 2017-12 Article PeerReviewed application/pdf en http://irep.iium.edu.my/63106/1/63105_Towards%20providing%20the%20best%20Shar%C4%AB%27ah_scopus.pdf application/pdf en http://irep.iium.edu.my/63106/7/63106_Towards%20the%20development%20of%20Shar%C4%AB%27ah.pdf application/pdf en http://irep.iium.edu.my/63106/13/63106_Towards%20the%20development%20of%20Shar%C4%AB%27ah%20compliant_WOS.pdf Engku Ali, Engku Rabiah Adawiah and Oseni, Umar Aimhanosi and Ellias, Muhd Ramadhan Fitri and Haron, Muhamad Nasir (2017) Towards the development of Sharī'ah compliant high quality liquid assets for Islamic financial institutions. Al-Shajarah: Journal of the International Institute of Islamic Thought and Civilization (ISTAC), 2017 (Special Issue Education). pp. 233-264. ISSN 1394-6870 http://journals.iium.edu.my/shajarah/index.php/shaj/article/view/619
institution	Universiti Islam Antarabangsa Malaysia
building	IIUM Library
collection	Institutional Repository
continent	Asia
country	Malaysia
content_provider	International Islamic University Malaysia
content_source	IIUM Repository (IREP)
url_provider	http://irep.iium.edu.my/
language	English English English
topic	HB126.4 Islamic Economics HG3368 Islamic Banking and Finance HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	HB126.4 Islamic Economics HG3368 Islamic Banking and Finance HG4001 Financial management. Business finance. Corporation finance. Engku Ali, Engku Rabiah Adawiah Oseni, Umar Aimhanosi Ellias, Muhd Ramadhan Fitri Haron, Muhamad Nasir Towards the development of Sharī'ah compliant high quality liquid assets for Islamic financial institutions
description	Islamic banks are required to be able to access and hold sufficientlevels of High Quality Liquid Assets (HQLA) as part of Basel IIIrequirements. Such HQLA are specifically meant to allow theIslamic banks to raise funds in money markets in the event ofliquidity shortage or in some cases for the funding of new profitableinvestments. Against this backdrop, this study examines existingefforts in developing Sharī’ah-compliant HQLA and the challengesIslamic financial institutions are facing in assessing such liquidinstruments. Beside the laudable efforts of a policy-drivensupranational institution in developing Sharī’ah-compliant HQLA,there has not been much effort in the global Islamic finance industryto develop more HQLAs. As a matter of fact, it is the overarchingdearth of such Sharī’ah compliant HQLA for liquidity managementthat led the Bank of England to commence work on the feasibility ofintroducing central bank liquidity facilities such as the proposedSharī’ah compliant fund based deposit in 2015 which is expected tobe ready for implementation by Spring 2018. This study also findsthat experts have considered the potential of gold as HQLA forbank’s liquidity management
format	Article
author	Engku Ali, Engku Rabiah Adawiah Oseni, Umar Aimhanosi Ellias, Muhd Ramadhan Fitri Haron, Muhamad Nasir
author_facet	Engku Ali, Engku Rabiah Adawiah Oseni, Umar Aimhanosi Ellias, Muhd Ramadhan Fitri Haron, Muhamad Nasir
author_sort	Engku Ali, Engku Rabiah Adawiah
title	Towards the development of Sharī'ah compliant high quality liquid assets for Islamic financial institutions
title_short	Towards the development of Sharī'ah compliant high quality liquid assets for Islamic financial institutions
title_full	Towards the development of Sharī'ah compliant high quality liquid assets for Islamic financial institutions
title_fullStr	Towards the development of Sharī'ah compliant high quality liquid assets for Islamic financial institutions
title_full_unstemmed	Towards the development of Sharī'ah compliant high quality liquid assets for Islamic financial institutions
title_sort	towards the development of sharī'ah compliant high quality liquid assets for islamic financial institutions
publisher	IIUM Press, International Islamic University Malaysia
publishDate	2017
url	http://irep.iium.edu.my/63106/1/63105_Towards%20providing%20the%20best%20Shar%C4%AB%27ah_scopus.pdf http://irep.iium.edu.my/63106/7/63106_Towards%20the%20development%20of%20Shar%C4%AB%27ah.pdf http://irep.iium.edu.my/63106/13/63106_Towards%20the%20development%20of%20Shar%C4%AB%27ah%20compliant_WOS.pdf http://irep.iium.edu.my/63106/ http://journals.iium.edu.my/shajarah/index.php/shaj/article/view/619
_version_	1643619707582939136
score	13.211869

Towards the development of Sharī'ah compliant high quality liquid assets for Islamic financial institutions

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