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Bank of England to offer Islamic liquidity tool more widely
4-traders ^ | 5 March 2018 | Bernardo Vizcaino

Posted on 03/06/2018 5:09:58 AM PST by vikingd00d

The Bank of England plans to offer a proposed sharia-compliant liquidity tool to a wider range of financial institutions beyond Islamic banks to boost demand, a senior official said on Monday. London has long sought to position itself as a global hub for Islamic finance, aiming to attract business from core centres in the Middle East and Southeast Asia.

The central bank has been working on a fund-based deposit model that would help Islamic lenders meet regulatory requirements for liquid asset buffers.

But the tool will also be available to institutions whose articles of association incorporate sharia compliance, Arshadur Rahman, manager in the bank's sterling markets division, said during an industry conference at the London Stock Exchange, which was webcast.

Such institutions may include Islamic mortgage firms, Islamic insurance firms and Islamic leasing firms, although the Bank did not specify whether these would be eligible for the new tool.

Offering the product more widely would allow the Bank to "future proof" the facility by ensuring there is adequate demand, said Rahman, who is also the Bank's Islamic finance specialist.

While there is no fixed date for the launch of the facility, the bank will work on its legal documentation and risk hedging aspects this year, he added.

The facility will be based on an agency contract known as wakala and would be backed by high quality liquid assets.

TOPICS: Business/Economy; United Kingdom
KEYWORDS: finance; islam; moslem
>>London has long sought to position itself as a global hub for Islamic finance

Britain's death-spiral into islamic slavery continues apace.

1 posted on 03/06/2018 5:09:58 AM PST by vikingd00d
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To: vikingd00d
Who was it who said “There will always be an England”?
2 posted on 03/06/2018 5:15:24 AM PST by Gay State Conservative (Obama & Hillary: The Two Most Corrupt Politicians of My Lifetime.)
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To: Gay State Conservative

It’s already gone.
Khan as mayor is working his world of charm, turning the upper levels into a snake den.

3 posted on 03/06/2018 5:27:23 AM PST by himno hero (hadnuff)
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To: vikingd00d

sharia banking is already in the USA. NONE of the banks want the normal people to know this. Charging interest (usury) is forbidden by *slamic and Jewish law. But only the *slamics have banks bowing down and kissing their a$$.

But the reality is that “interest free loans” are fake phony fraud, because an amount equivalent to the interest that humans would have paid is calculated, and added to the cost of the loan. So it is interest, but because it isn’t called that, it’s OK for the sharia crowd.

4 posted on 03/06/2018 5:30:57 AM PST by I want the USA back (Liberalism is the denial of human nature. Liberals are insane. Liberals should be in strait jackets.)
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To: I want the USA back

So, it’s like a discounted note?

For example, if the interest on a $1000 loan would have been $200, does the sharia borrower get $1000, but have to pay back $1200 at some future date?

5 posted on 03/06/2018 6:01:10 AM PST by Pearls Before Swine ("Married with children.")
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To: vikingd00d

The best liquidity tool is a gun. The Arabs know this instinctively.

6 posted on 03/06/2018 7:59:54 AM PST by VietVet876
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