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
IAIS on Package for 2020 Data Collection on ICS and Aggregation Method
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.
BIS to Establish More Innovation Hubs in Europe and North America
BIS announced that it will establish new Innovation Hub centers across Europe and in North America in cooperation with member central banks.
FED Updates Form FR 2052a for LCR Reporting by Banks
FED updated the reporting form for FR 2052a, which is used to monitor the overall liquidity profile of certain supervised institutions.
PRA Statement on Changes to CRR in Response to COVID-19 Crisis
PRA published a statement that sets out its views on certain amendments made to Capital Requirements Regulations (CRR and CRR2) via EU Regulation 2020/873 (CRR "Quick Fix"), including some guidance for firms.
CFRF Publishes Guide for Addressing Climate-Related Financial Risks
The Climate Financial Risk Forum (CFRF), which is a joint climate risk forum of FCA and PRA, published a guide written by the industry for the industry to help firms approach and address climate-related financial risks.
IAIS Paper Provides Guidance on Liquidity Risk Management for Insurers
IAIS published an application paper on liquidity risk management for insurers.
EBA Responds to EC Consultation on Digital Finance Strategy for Europe
EBA published its response to the EC consultation on a new Digital Finance Strategy for Europe.
EIOPA Responds to EC Consultation on Digital Finance Strategy
EIOPA responded to the EC consultation on a new digital finance strategy for Europe.
ESMA Responds to EC Consultation on Digital Finance Strategy
ESMA published its response to the EC consultation on the new digital finance strategy for EU.
FSB Report Identifies Gaps in Too-Big-To-Fail Reforms
FSB published, for consultation, a report on evaluation of the too-big-to-fail (TBTF) reforms for systemically important banks.
