Showing posts with label Liquidity Management. Show all posts
Showing posts with label Liquidity Management. Show all posts

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.