By Suleman Muhammad Ali
Abstract
With the increasing demand of Islamic banking throughout the globe, the challenge with respect to liquidity management for the banks increases. The influx of deposits with limited avenues for Shariah compliant investment avenues, the need of an innovative liquidity management solution is at peak. This paper explains an unique structure to overcome the challenge of liquidity management by selling undivided share of the deposit pool of the Islamic Bank to the customer on credit basis which would enable the customer to meet his short-term liquidity management need. This solution is structured without the use of international commodity Murabaha.
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