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
Senior practitioner in asset and liability management (ALM) and liquidity risk who assists banking clients in advancing their treasury and balance sheet management objectives
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