UK treasurers thrilled as BoE eyes Shariah liquidity lines

By Steven Gilmore
30 Oct 2014

The Bank of England (BoE) will begin work next year figuring out how to provide Islamic banks with Shariah-compliant liquidity facilities. Even without knowing what rates or requirements the prospective facilities will involve, the UK’s Islamic lenders — long starved of Shariah-compliant liquid assets — say anything will be better than holding cash.

The UK’s central bank is well aware that the Islamic banks face serious difficulties in meeting liquidity requirements, Andrea Leadsom, economic secretary to the UK Treasury, said in a speech at the World Islamic Economic Forum in Dubai this week. In an attempt to address these difficulties the ...

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