CBB Launches New Liquidity Management Tool for Islamic Retail Banks
CBB launched Single binding Wa’ad based structure facility, which is a Shari’ah compliant alternative to the foreign exchange forward. The facility was launched as part of the ongoing efforts toward developing Islamic banking and promoting liquidity management for Islamic retail banks.
This tool is based on the “Single Binding Wa’ad based structure” agreement that has been developed by the International Islamic Financial Market and the International Swaps and Derivatives Association (ISDA). It is considered the latest effort by the industry body to improve the available hedging practices in the Islamic banking sector. CBB emphasizes that providing such Shari'ah-compliant product contributes to the diversification of Islamic investment opportunities and enhances the Kingdom’s position as a financial center for Islamic banking.
Related Link: Press Release
Keywords: Middle East and Africa, Bahrain, Banking, Securities, Single binding Wa’ad, Islamic Banking, Liquidity Management Tool, IIFM, ISDA, CBB
Featured Experts

Karen Moss
Senior practitioner in asset and liability management (ALM) and liquidity risk who assists banking clients in advancing their treasury and balance sheet management objectives
Previous Article
OCC Publishes Semiannual Risk Perspective for Fall 2019Related Articles
FED Revises Capital Planning and Stress Testing Requirements for Banks
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.
ECB Releases Results of Bank Lending Survey for Fourth Quarter of 2020
ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.
ESAs Publish Reporting Templates for Financial Conglomerates
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.
EBA Publishes Report on Asset Encumbrance of Banks in EU
EBA published the annual report on asset encumbrance of banks in EU.
MAS Revises Guidelines on Technology Risk Management
MAS revised the guidelines that address technology and cyber risks of financial institutions, in an environment of growing use of cloud technologies, application programming interfaces, and rapid software development.
US Agencies Publish Updates for Call Reports, FFIEC 101, and FR Y-9C
FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.
EBA Proposes Guidelines for Establishing Intermediate Parent Entities
EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.
EC Adopts Financial Reporting Changes Arising from Benchmark Reforms
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HMT Updates List of Post-Brexit Equivalence Decisions in UK
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.