Wednesday, November 11, 2015

The Importance of Liquidity Management in Islamic Finance and How Shariah Accommodate Its Implementation

(Nota Ringkasan hasil daripada bab dalam buku "Contemporary Issues in Islamic Finance: Deliberation At The International Shariah Scholars Dialogue 2006" tulisan Dr. Muhammad Syafi’i Antonio)


The Significance of Liquidity  Management
·         Managing liquidity is a fundamental component in the safe and sound management of Islamic bank and financial institutions
·         Sound liquidity management prudently managing assets and liabilities (on and off-balance sheet) to ensure the cash inflows can meet obligations.
·         It is important to have the process of liquidity planning :
o   assesses potential future liquidity needs,
o   considering various possible changes in market, political, regulatory
o   other internal and external factors.