Tazkia Islamic Finance and Business Review
Vol 12, No 2 (2018)

Liquidity Management in Islamic Banking: Issues and Challenges

Rizkiah, Siti Kholifatul ( International Centre for Education in Islamic Finance )

Article Info

Publish Date
04 Sep 2018


As a financial intermediation, banking industry has and will always be bound with mismatch maturity problem between asset and liabilities which leads to liquidity issue. This article uses a literature study to observe the current liquidity trend in Islamic banking, the issues faced by the existing Islamic liquidity instruments and ways to overcome it. It is found that the common issues associated with Islamic liquidity instruments are sharia issue, inactivity of its secondary market, key issues on short term sukuk issuance and difficulty of cross-border transactions. A better management on liquidity position and a more robust liquidity infrastructure are needed for a better liquidty management in Islamic banking industry.

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Original Source : http://tifbr-tazkia.org/index.php/TIFBR/article/view/148
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Journal Info





Economics, Econometrics & Finance


Tazkia Islamic Finance and Business Review (TIFBR) is a peer-reviewed journal published by the Institute for Research and Community Empowerment (IRCE), Tazkia University College of Islamic Economics in collaboration with Association of Islamic Economics Lecturers (ADESY). The Journal is semi-annual ...