Liquidity Management Mechanisms of Islamic and Conventional Finance: A Shariah Appraisal

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Policy Perspectives: The Journal of the Institute of Policy Studies

Volume 15, Issue 2

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Liquidity Management Mechanisms of Islamic and Conventional Finance: A Shariah Appraisal

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Author(s): Sheikh Rafiullah , Dr. Atiquzzafar Khan

Publication date (Print): 2018

Journal: Policy Perspectives: The Journal of the Institute of Policy Studies

Publisher: Pluto Journals

Keywords: Islamic Banking and Finance, Liquidity Management Mechanisms and Instruments, Shari'ah Analysis

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Abstract

Content

Author and article information

Journal

Journal ID (doi): 10.13169

Journal ID (publisher-id): polipers

Title: Policy Perspectives: The Journal of the Institute of Policy Studies

Publisher: Pluto Journals

ISSN (Print): 18121829

ISSN (Electronic): 18127347

Publication date (Print): 2018

Volume: 15

Issue: 2

Pages: 1-24

Affiliations

Sheikh Rafiullah, International Islamic University, Islamabad. Dr. Atiquzzafar Khan, Assistant Professor, Director General & Head of Islamic Banking and Finance, International Institute of Islamic Economics (IIIE), International Islamic University, Islamabad (IIUI).

Article

Publisher ID: polipers.15.2.0001

DOI: 10.13169/polipers.15.2.0001

SO-VID: 4f53171d-afe0-41ef-be78-0fe8370fc0c0

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All content is freely available without charge to users or their institutions. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles in this journal without asking prior permission of the publisher or the author. Articles published in the journal are distributed under a http://creativecommons.org/licenses/by/4.0/.

History

ScienceOpen disciplines: Education,Religious studies & Theology,Social & Behavioral Sciences,Law,Economics

Keywords: Islamic Banking and Finance,Liquidity Management Mechanisms and Instruments,Shari'ah Analysis

References

Sabur Mollah, and Mahbub Zaman. “Shari'ah Supervision, Corporate Governance and Performance: Conventional Vs. Islamic Banks.” Journal of Banking & Finance 58 (2015): 418–435.
Mohammad Bitar, Philippe Madies, and Ollivier Taramasco. “What Makes Islamic Banks Different? A Multivariate Approach.” Economic Systems 41, no. 2 (2017): 215–235.
Naama Trad, Mohamed Ali Trabelsi, and Jean Francos Goux. “Risk and Profitability of Islamic Banks: A Religious Deception or an Alternative Solution?” European Research on Management and Business Economics 23 (2017): 40–45.
M. Mansoor Khan, and M. Ishaq Bhatti. “Development in Islamic Banking: A Financial Risk-Allocation approach.” The Journal of Risk Finance, 9 (1) , 2008: 40–51.
Muhsin Kar, Saban Nazlioglu, and Huseyin Agir. “Financial Development and Economic Growth Nexus in the MENA Countries: Bootstrap Panel Granger Causality Analysis.” Economic Modelling, 28 , 2011: 685–693.
Patrick Imam, and Kangni Kpodar. Is Islamic Banking Good for Growth? (IMF Working Paper-WP/15/81) . International Monetary Fund, 2015.
Abu-Tapanjeh, Abdussalam Mahmoud. “Corporate Governance from the Islamic Perspective: A Comparative Analysis with OECD Principles.” Critical Perspectives on Accounting, 20 , 2009: 556–567.
M. Fahim Khan, and Mario Porzio. Islamic Banking and Finance in the European Union: A Challenge . Cheltenham, UK: Edward Elgar Publishing Limited, 2010.
SBP. Islamic Banking Bulletin (March-2017) . Karachi: Islamic Banking Department, State Bank of Pakistan, 2017.
Ali Ahmad Al-Nadawi. Al-Qawaid al-Fiqhiyyah (Arabic) . Damascus: Dar al-Qalam, 1991.
Muhammad Yusuf Saleem. Islamic Commercial Law . Singapore: John Wiley & Sons Singapore Pte. Ltd., 2013.
Muhammad Ayub. Understanding Islamic Finance . Chichester, West Sussex: John Wiley & Sons Ltd, 2007.
Tahir Mansoori. Islamic Law of Contracts and Business Transactions, 5th ed . Islamabad, Pakistan: Shari'ah Academy, International Islamic University, Islamabad, 2009.
Abdullah Al-Nasafi. Kanz-ul-Daqaiq (Arabic) . Beirut: Dar al-Bashair al-Islamiyyah, 2011.
Abubakr Ahmad Al-Jassas. Ahkam ul Quran (Arabic) . Lahore: Sohail Academy, 1980.
Abubakr Al-Sarakhasi. Kitab al-Mabsut (Arabic) . Beirut: Dar al-Kutub al-Ilmiyyah, 2001.
Sahīh Muslim, Kitāb-ul-Hajj, Hadith no. 2803.
Sahīh Muslim, Kitāb-ul-Musāqa, Hadith no. 1598.
Muhammad Bin Ismail Al-Sanaani. Subul Al-Salam (Urdu Translation by Abdul-Rahman Gilani & Abdul Qayyum) . Islamabad: Shariah Academy, IIUI, 1998.
Frank E Vogel, and Samuel L Hayes. Islamic Law and Finance: Religion, Risk, and Return . London: Kluwer Law International, 1998.
Zamir Iqbal and Abbas Mirakhor. An Introduction to Islamic Finance: Theory and Practice . Singapore: John Wiley & Sons (Asia) Pte. Ltd., 2011.
Muhammad Al-Bashir Muhammad Al-Amine. Islamic Finance and Africa's Economic Resurgence: Promoting Diverse and Localized Investment . New York: Palgrave Macmillan, 2016.
Tahir Mansoori. Islamic Law of Contracts and Business Transactions, 5th ed . Islamabad, Pakistan: Shari'ah Academy, International Islamic University, Islamabad, 2009.
Abubakr Al-Sarakhasi. Kitab al-Mabsut (Arabic) . Beirut: Dar al-Kutub al-Ilmiyyah, 2001.
Abu Muhammad Ali Ibn-Hazm. Al-Muhalla (Arabic) . Lahore: Dar al-Dawah al-Salfiyyah, 1984.
Muhammad Amin Ibn-Aabideen. Radd al-Muhtaar Ala al-Durr al-Mukhtaar (Arabic) . Quetta: Maktabah Majidiyyah, 1982.
Muhammad Ahmad Al-Dhareer,. Al-Gharar in Contracts and its Effects on Contemporary Transactions . Jeddah, KSA: Islamic Research and Training Institute, Islamic Development Bank, 1997.
Mehmood El-Gamal. “An Economic Explication of the Prohibition of Gharar in Classical Islamic Jurisprudence.” Islamic Economic Studies , 2001: 29–58.
Muhammad Yusuf Saleem. Islamic Commercial Law . Singapore: John Wiley & Sons Singapore Pte. Ltd., 2013.
Akram Khan. Islamic economics and finance: a glossary (2nd ed.) . London, UK: Routledge, 2003.
Muhammad Ayub. Understanding Islamic Finance . Chichester, West Sussex: John Wiley & Sons Ltd, 2007.
N. Mohammed. “Principles of Islamic Contract Law.” Journal of Law and Religion , 1988: 115–130.
Muhammad Yusuf Saleem. Islamic Commercial Law . Singapore: John Wiley & Sons Singapore Pte. Ltd., 2013.
Akram Khan. Islamic economics and finance: a glossary (2nd ed.) . London, UK: Routledge, 2003.
Mahmoud El-Gamal. Islamic Finance: Law, Economics and Practice . Cambridge: Cambridge University Press, 2006.
Wahbah Al-Zuhaili. Al-Fiqh al-Islami wa Adillatuh (Arabic) . Damascus: Dar al-Fikr, 2002.
Ali bin Umar Al-Daraqutni. Sunan Al-Daraqutni (Arabic) . Beirut: Dar Al-Kutub Al-Ilmiyyah, 2011.
Transfer of one's debt to a third party with a recourse to the original debtor.
Muhammad Al-Ghazali. Ihyaa Ulumuddin (Arabic) . Beirut: Dar al-Khar, 1990.
Akram Khan. Islamic Economics and Finance: A Glossary (2nd ed.) . London, UK: Routledge, 2003.
Abraham L Udovitch. Bankers without Banks: Commerce, Banking and Society in the Islamic World of Middle Ages (Princeton Near East Paper No. 30) . Princeton: Princeton University Press, 1981.
AAOIFI. Shariah Standards Book 2014 (Arabic) . Bahrain: Accounting and Auditing Organization of Islamic Financial Institutions, 2014.
A Special Purpose Vehicle (SPV) is a separate legal entity established for managing the Sukūk issues. The originator (or issuer of Sukūk) sells its assets to the SPV. SPV arranges the purchase price by issuing Sukūk. The legal structure of an SPV depends upon the regulatory and legal environment in which it has to work(Ayub 2007).
Meysam Safari, Mohamed Ariff, and Shamsher Mohamad. Sukuk Securities: New Ways of Debt Contracting . Singapore: John Wiley & Sons Singapore Pte. Ltd., 2014.
A. H. Abdel-Khaleq, and C. F. Richardson. “New Horizons for Islamic Securities: Emerging Trends in Sukuk Offer Earnings.” Chicago Journal of International Law , 2007: 418–419.
Iqbal, Zamir, and Abbas Mirakhor. An Introduction to Islamic Finance: Theory and Practice . Singapore: John Wiley & Sons (Asia) Pte. Ltd., 2011.
Asyraf W Dusuki. “Commodity Murabahah Programme (CMP): An Innovative Approach to Liquidity Management.” Journal of Islamic Economics, Banking and Finance , 2007: 1–23.
Akram Khan. Islamic Economics and Finance: A Glossary (2nd ed.) . London, UK: Routledge, 2003.
AAOIFI. Shariah Standards Book 2014 (Arabic) . Bahrain: Accounting and Auditing Organization of Islamic Financial Institutions, 2014.
Abdul Rahman Al-Jaziri. Kitab ul Fiqh Ala al-Mazahib al-Arbaa (Urdu Translation by Munawar Ahsan Abbasi) . Lahore: Ulama Academy: Shobah Matbuat Mahkmah Auqaf Punjab, 2013.
Muhammad bin Ali Al-Shawkani. Nayl al-Awtaar . Cairo: Dar al-Hadees, 1993.
Abderrahman bin Ali Ibn-Juzey. Qawaneen al-Ahkaam al-Shariah (Arabic) . Beirut: Dar al-Ilm al-Maaliyyah, 1973. Abdullah bin Ahmad Ibn-Qudamah. Al-Mughni (Arabic) . Cairo: Hajar, 1992.
Makkah Fiqh Academy. Islami Fiqh Academy Makkah Key Fiqhi Faisley (Urdu Translation by Faheem Akhtar Nadvi)) . New Delhi: IFA Publications, 2008. OIC Fiqh Academy. Internaqtional Fiqh Academy Jeddah Key Sharee Faisley (Urdu Translation by Faheem Akhtar Nadvi) . New Delhi: IFA Publications, 2012.
Salman S Ali. “State of Liquidity Management in Islamic Financial Institutions.” Islamic Economic Studies , 2013: 63–98.
Buerhan Saiti, Aznan Hasan, and Engku Rabiah Adawiah Engku-Ali. “Islamic Interbank Money Market: Contracts, Instruments and Their Pricing.” In Islamic Capital Markets: Volatility, Performance and Stability , by Nafis Alam and Syed Aun R Rizvi, 67–100. Switzerland: Springer International Publishing, 2016.
Obiyathulla I Bacha. “The Islamic Inter Bank Money Market and a Dual Banking System: the Malaysian Experience.” International Journal of Islamic and Middle Eastern Finance and Management , 2008: 210–226.
Muhammad Ayub. Understanding Islamic Finance . Chichester, West Sussex: John Wiley & Sons Ltd, 2007.
AAOIFI. Shariah Standards Book 2014 (Arabic) . Bahrain: Accounting and Auditing Organization of Islamic Financial Institutions, 2014.
Abdul Rahman Al-Jaziri. Kitab ul Fiqh Ala al-Mazahib al-Arbaa (Urdu Translation by Munawar Ahsan Abbasi) . Lahore: Ulama Academy: Shobah Matbuat Mahkmah Auqaf Punjab, 2013.
Buerhan Saiti, Aznan Hasan, and Engku Rabiah Adawiah Engku-Ali. “Islamic Interbank Money Market: Contracts, Instruments and Their Pricing.” In Islamic Capital Markets: Volatility, Performance and Stability , by Nafis Alam and Syed Aun R Rizvi, 67–100. Switzerland: Springer International Publishing, 2016.
Salman S Ali. “State of Liquidity Management in Islamic Financial Institutions.” Islamic Economic Studies , 2013: 63–98.
Bob Steiner. Foreign Exchange and Money Markets: Theory, Practice and Risk Management . Oxford: Butterworth-Heinemann, 2002.
Buerhan Saiti, Aznan Hasan, and Engku Rabiah Adawiah Engku-Ali. “Islamic Interbank Money Market: Contracts, Instruments and Their Pricing.” In Islamic Capital Markets: Volatility, Performance and Stability , by Nafis Alam and Syed Aun R Rizvi, 67–100. Switzerland: Springer International Publishing, 2016.
Bob Steiner. Foreign Exchange and Money Markets: Theory, Practice and Risk Management . Oxford: Butterworth-Heinemann, 2002.
Moorad Choudhry. The Bond and Money Markets: Strategy, Trading, Analysis . Oxford: Butterworth-Heinemann, 2001.
Osman Babikir-Ahmed. Islamic Financial Instruments to Manage Short-Term Excess Liquidity . Jeddah: Islamic Research and Training Institute, Islamic Development Bank, 2001.
Moorad Choudhry. The Bond and Money Markets: Strategy, Trading, Analysis . Oxford: Butterworth-Heinemann, 2001.
D. S. Kidwell, and R. L. Peterson. Financial Institutions, Markets and Money . Illinios: The Dryden Press, 1981.
It is a sale transaction in which a person, who needs money, sells a commodity with the condition that whenever he wants the buyer will return back the commodity upon surrender of the price. The reason for the designation as Wafā is the promise to return the commodity to the seller on returning the price. It is a legal device for Ribā. The buyer is actually the creditor who take benefits from the commodity held in his custody as a pledge till the seller (the debtor) returns him the price and retrieves his object. Islamic injunctions on pledge provide that the creditor is not entitled to take benefits from the pledged property. Any profit drawn from the commodity would be Ribā, therefore, Bay' al-wafā is prohibited.
Bob Steiner. Foreign Exchange and Money Markets: Theory, Practice and Risk Management . Oxford: Butterworth-Heinemann, 2002.
Imran A Usmani. Islamic Finance: Revised & Updated Edition of Meezan Bank's Guide to Islamic Banking . Karachi, Pakistan: Maktaba Ma'ariful Quran (Quranic Tudies Publishers), 2015.
Ritu Basu, Ananthakrishnan Prasad, and Sergio Rodriguez. “Monetary Operations and Islamic Banking in the GCC: Challenges and Options (IMF Working Paper-WP/15/234).” International Monetary Fund, 2015.
Osman Babikir-Ahmed. Islamic Financial Instruments to Manage Short-Term Excess Liquidity . Jeddah: Islamic Research and Training Institute, Islamic Development Bank, 2001.
Thammarak Moenjak. Central Banking: Theory and Practice in Sustaining Monetary and Financial Stability . Singapore: John Wiley & Sons Singapore Pte. Ltd., 2014.
Yahia Abdul-Rahman. The Art of RF (Riba-Free) Islamic Banking and Finance: Tools and Techniques for Community-Based Banking . New Jersey: John Wiley & Sons, Inc., 2014.
Frederic S Mishkin. The Economics of Money, Banking, and Financial Markets . New York: The Eddison-Wesley, 2004.
Mohammad Daud-Bakar. “Shari'ah Principles Governing Takaful Models.” In Takaful Islamic Insurance: Concepts and Regulatory Issues , by Simon Archer, Rifaat Ahmed Abdel-Karim and Volker Nienhaus, 31–46. Singapore: John Wiley & Sons (Asia) Pte. Ltd., 2009.
Akram Khan. Islamic Economics and Finance: A Glossary (2nd ed.) . London, UK: Routledge, 2003.
Shariah Advisory Council Malaysia. Shariah Resolutions in Islamic Finance (2nd Edition) . Kualalumpur: Bank Negara Malaysia, 2010.
Wahbah Al-Zuhaili. Al-Fiqh al-Islami wa Adillatuh (Arabic) . Damascus: Dar al-Fikr, 2002.

Comments

Comment on this article

[1] Sabur Mollah, and Mahbub Zaman. “Shari'ah Supervision, Corporate Governance and Performance: Conventional Vs. Islamic Banks.” Journal of Banking & Finance 58 (2015): 418–435.

[2] Mohammad Bitar, Philippe Madies, and Ollivier Taramasco. “What Makes Islamic Banks Different? A Multivariate Approach.” Economic Systems 41, no. 2 (2017): 215–235.

[3] Naama Trad, Mohamed Ali Trabelsi, and Jean Francos Goux. “Risk and Profitability of Islamic Banks: A Religious Deception or an Alternative Solution?” European Research on Management and Business Economics 23 (2017): 40–45.

[4] M. Mansoor Khan, and M. Ishaq Bhatti. “Development in Islamic Banking: A Financial Risk-Allocation approach.” The Journal of Risk Finance, 9 (1) , 2008: 40–51.

[5] Muhsin Kar, Saban Nazlioglu, and Huseyin Agir. “Financial Development and Economic Growth Nexus in the MENA Countries: Bootstrap Panel Granger Causality Analysis.” Economic Modelling, 28 , 2011: 685–693.

[6] Patrick Imam, and Kangni Kpodar. Is Islamic Banking Good for Growth? (IMF Working Paper-WP/15/81) . International Monetary Fund, 2015.

[7] Abu-Tapanjeh, Abdussalam Mahmoud. “Corporate Governance from the Islamic Perspective: A Comparative Analysis with OECD Principles.” Critical Perspectives on Accounting, 20 , 2009: 556–567.

[8] M. Fahim Khan, and Mario Porzio. Islamic Banking and Finance in the European Union: A Challenge . Cheltenham, UK: Edward Elgar Publishing Limited, 2010.

[9] SBP. Islamic Banking Bulletin (March-2017) . Karachi: Islamic Banking Department, State Bank of Pakistan, 2017.

[10] Ali Ahmad Al-Nadawi. Al-Qawaid al-Fiqhiyyah (Arabic) . Damascus: Dar al-Qalam, 1991.

[11] Muhammad Yusuf Saleem. Islamic Commercial Law . Singapore: John Wiley & Sons Singapore Pte. Ltd., 2013.

[12] Muhammad Ayub. Understanding Islamic Finance . Chichester, West Sussex: John Wiley & Sons Ltd, 2007.

[13] Tahir Mansoori. Islamic Law of Contracts and Business Transactions, 5th ed . Islamabad, Pakistan: Shari'ah Academy, International Islamic University, Islamabad, 2009.

[14] Abdullah Al-Nasafi. Kanz-ul-Daqaiq (Arabic) . Beirut: Dar al-Bashair al-Islamiyyah, 2011.

[15] Abubakr Ahmad Al-Jassas. Ahkam ul Quran (Arabic) . Lahore: Sohail Academy, 1980.

[16] Abubakr Al-Sarakhasi. Kitab al-Mabsut (Arabic) . Beirut: Dar al-Kutub al-Ilmiyyah, 2001.

[17] Sahīh Muslim, Kitāb-ul-Hajj, Hadith no. 2803.

[18] Sahīh Muslim, Kitāb-ul-Musāqa, Hadith no. 1598.

[19] Muhammad Bin Ismail Al-Sanaani. Subul Al-Salam (Urdu Translation by Abdul-Rahman Gilani & Abdul Qayyum) . Islamabad: Shariah Academy, IIUI, 1998.

[20] Frank E Vogel, and Samuel L Hayes. Islamic Law and Finance: Religion, Risk, and Return . London: Kluwer Law International, 1998.

[21] Zamir Iqbal and Abbas Mirakhor. An Introduction to Islamic Finance: Theory and Practice . Singapore: John Wiley & Sons (Asia) Pte. Ltd., 2011.

[22] Muhammad Al-Bashir Muhammad Al-Amine. Islamic Finance and Africa's Economic Resurgence: Promoting Diverse and Localized Investment . New York: Palgrave Macmillan, 2016.

[23] Tahir Mansoori. Islamic Law of Contracts and Business Transactions, 5th ed . Islamabad, Pakistan: Shari'ah Academy, International Islamic University, Islamabad, 2009.

[24] Abubakr Al-Sarakhasi. Kitab al-Mabsut (Arabic) . Beirut: Dar al-Kutub al-Ilmiyyah, 2001.

[25] Abu Muhammad Ali Ibn-Hazm. Al-Muhalla (Arabic) . Lahore: Dar al-Dawah al-Salfiyyah, 1984.

[26] Muhammad Amin Ibn-Aabideen. Radd al-Muhtaar Ala al-Durr al-Mukhtaar (Arabic) . Quetta: Maktabah Majidiyyah, 1982.

[27] Muhammad Ahmad Al-Dhareer,. Al-Gharar in Contracts and its Effects on Contemporary Transactions . Jeddah, KSA: Islamic Research and Training Institute, Islamic Development Bank, 1997.

[28] Mehmood El-Gamal. “An Economic Explication of the Prohibition of Gharar in Classical Islamic Jurisprudence.” Islamic Economic Studies , 2001: 29–58.

[29] Muhammad Yusuf Saleem. Islamic Commercial Law . Singapore: John Wiley & Sons Singapore Pte. Ltd., 2013.

[30] Akram Khan. Islamic economics and finance: a glossary (2nd ed.) . London, UK: Routledge, 2003.

[31] Muhammad Ayub. Understanding Islamic Finance . Chichester, West Sussex: John Wiley & Sons Ltd, 2007.

[32] N. Mohammed. “Principles of Islamic Contract Law.” Journal of Law and Religion , 1988: 115–130.

[33] Muhammad Yusuf Saleem. Islamic Commercial Law . Singapore: John Wiley & Sons Singapore Pte. Ltd., 2013.

[34] Akram Khan. Islamic economics and finance: a glossary (2nd ed.) . London, UK: Routledge, 2003.

[35] Mahmoud El-Gamal. Islamic Finance: Law, Economics and Practice . Cambridge: Cambridge University Press, 2006.

[36] Wahbah Al-Zuhaili. Al-Fiqh al-Islami wa Adillatuh (Arabic) . Damascus: Dar al-Fikr, 2002.

[37] Ali bin Umar Al-Daraqutni. Sunan Al-Daraqutni (Arabic) . Beirut: Dar Al-Kutub Al-Ilmiyyah, 2011.

[38] Transfer of one's debt to a third party with a recourse to the original debtor.

[39] Muhammad Al-Ghazali. Ihyaa Ulumuddin (Arabic) . Beirut: Dar al-Khar, 1990.

[40] Akram Khan. Islamic Economics and Finance: A Glossary (2nd ed.) . London, UK: Routledge, 2003.

[41] Abraham L Udovitch. Bankers without Banks: Commerce, Banking and Society in the Islamic World of Middle Ages (Princeton Near East Paper No. 30) . Princeton: Princeton University Press, 1981.

[42] AAOIFI. Shariah Standards Book 2014 (Arabic) . Bahrain: Accounting and Auditing Organization of Islamic Financial Institutions, 2014.

[43] A Special Purpose Vehicle (SPV) is a separate legal entity established for managing the Sukūk issues. The originator (or issuer of Sukūk) sells its assets to the SPV. SPV arranges the purchase price by issuing Sukūk. The legal structure of an SPV depends upon the regulatory and legal environment in which it has to work(Ayub 2007).

[44] Meysam Safari, Mohamed Ariff, and Shamsher Mohamad. Sukuk Securities: New Ways of Debt Contracting . Singapore: John Wiley & Sons Singapore Pte. Ltd., 2014.

[45] A. H. Abdel-Khaleq, and C. F. Richardson. “New Horizons for Islamic Securities: Emerging Trends in Sukuk Offer Earnings.” Chicago Journal of International Law , 2007: 418–419.

[46] Iqbal, Zamir, and Abbas Mirakhor. An Introduction to Islamic Finance: Theory and Practice . Singapore: John Wiley & Sons (Asia) Pte. Ltd., 2011.

[47] Asyraf W Dusuki. “Commodity Murabahah Programme (CMP): An Innovative Approach to Liquidity Management.” Journal of Islamic Economics, Banking and Finance , 2007: 1–23.

[48] Akram Khan. Islamic Economics and Finance: A Glossary (2nd ed.) . London, UK: Routledge, 2003.

[49] AAOIFI. Shariah Standards Book 2014 (Arabic) . Bahrain: Accounting and Auditing Organization of Islamic Financial Institutions, 2014.

[50] Abdul Rahman Al-Jaziri. Kitab ul Fiqh Ala al-Mazahib al-Arbaa (Urdu Translation by Munawar Ahsan Abbasi) . Lahore: Ulama Academy: Shobah Matbuat Mahkmah Auqaf Punjab, 2013.

[51] Muhammad bin Ali Al-Shawkani. Nayl al-Awtaar . Cairo: Dar al-Hadees, 1993.

[52] Abderrahman bin Ali Ibn-Juzey. Qawaneen al-Ahkaam al-Shariah (Arabic) . Beirut: Dar al-Ilm al-Maaliyyah, 1973. Abdullah bin Ahmad Ibn-Qudamah. Al-Mughni (Arabic) . Cairo: Hajar, 1992.

[53] Makkah Fiqh Academy. Islami Fiqh Academy Makkah Key Fiqhi Faisley (Urdu Translation by Faheem Akhtar Nadvi)) . New Delhi: IFA Publications, 2008. OIC Fiqh Academy. Internaqtional Fiqh Academy Jeddah Key Sharee Faisley (Urdu Translation by Faheem Akhtar Nadvi) . New Delhi: IFA Publications, 2012.

[54] Salman S Ali. “State of Liquidity Management in Islamic Financial Institutions.” Islamic Economic Studies , 2013: 63–98.

[55] Buerhan Saiti, Aznan Hasan, and Engku Rabiah Adawiah Engku-Ali. “Islamic Interbank Money Market: Contracts, Instruments and Their Pricing.” In Islamic Capital Markets: Volatility, Performance and Stability , by Nafis Alam and Syed Aun R Rizvi, 67–100. Switzerland: Springer International Publishing, 2016.

[56] Obiyathulla I Bacha. “The Islamic Inter Bank Money Market and a Dual Banking System: the Malaysian Experience.” International Journal of Islamic and Middle Eastern Finance and Management , 2008: 210–226.

[57] Muhammad Ayub. Understanding Islamic Finance . Chichester, West Sussex: John Wiley & Sons Ltd, 2007.

[58] AAOIFI. Shariah Standards Book 2014 (Arabic) . Bahrain: Accounting and Auditing Organization of Islamic Financial Institutions, 2014.

[59] Abdul Rahman Al-Jaziri. Kitab ul Fiqh Ala al-Mazahib al-Arbaa (Urdu Translation by Munawar Ahsan Abbasi) . Lahore: Ulama Academy: Shobah Matbuat Mahkmah Auqaf Punjab, 2013.

[60] Buerhan Saiti, Aznan Hasan, and Engku Rabiah Adawiah Engku-Ali. “Islamic Interbank Money Market: Contracts, Instruments and Their Pricing.” In Islamic Capital Markets: Volatility, Performance and Stability , by Nafis Alam and Syed Aun R Rizvi, 67–100. Switzerland: Springer International Publishing, 2016.

[61] Salman S Ali. “State of Liquidity Management in Islamic Financial Institutions.” Islamic Economic Studies , 2013: 63–98.

[62] Bob Steiner. Foreign Exchange and Money Markets: Theory, Practice and Risk Management . Oxford: Butterworth-Heinemann, 2002.

[63] Buerhan Saiti, Aznan Hasan, and Engku Rabiah Adawiah Engku-Ali. “Islamic Interbank Money Market: Contracts, Instruments and Their Pricing.” In Islamic Capital Markets: Volatility, Performance and Stability , by Nafis Alam and Syed Aun R Rizvi, 67–100. Switzerland: Springer International Publishing, 2016.

[64] Bob Steiner. Foreign Exchange and Money Markets: Theory, Practice and Risk Management . Oxford: Butterworth-Heinemann, 2002.

[65] Moorad Choudhry. The Bond and Money Markets: Strategy, Trading, Analysis . Oxford: Butterworth-Heinemann, 2001.

[66] Osman Babikir-Ahmed. Islamic Financial Instruments to Manage Short-Term Excess Liquidity . Jeddah: Islamic Research and Training Institute, Islamic Development Bank, 2001.

[67] Moorad Choudhry. The Bond and Money Markets: Strategy, Trading, Analysis . Oxford: Butterworth-Heinemann, 2001.

[68] D. S. Kidwell, and R. L. Peterson. Financial Institutions, Markets and Money . Illinios: The Dryden Press, 1981.

[69] It is a sale transaction in which a person, who needs money, sells a commodity with the condition that whenever he wants the buyer will return back the commodity upon surrender of the price. The reason for the designation as Wafā is the promise to return the commodity to the seller on returning the price. It is a legal device for Ribā. The buyer is actually the creditor who take benefits from the commodity held in his custody as a pledge till the seller (the debtor) returns him the price and retrieves his object. Islamic injunctions on pledge provide that the creditor is not entitled to take benefits from the pledged property. Any profit drawn from the commodity would be Ribā, therefore, Bay' al-wafā is prohibited.

[70] Bob Steiner. Foreign Exchange and Money Markets: Theory, Practice and Risk Management . Oxford: Butterworth-Heinemann, 2002.

[71] Imran A Usmani. Islamic Finance: Revised & Updated Edition of Meezan Bank's Guide to Islamic Banking . Karachi, Pakistan: Maktaba Ma'ariful Quran (Quranic Tudies Publishers), 2015.

[72] Ritu Basu, Ananthakrishnan Prasad, and Sergio Rodriguez. “Monetary Operations and Islamic Banking in the GCC: Challenges and Options (IMF Working Paper-WP/15/234).” International Monetary Fund, 2015.

[73] Osman Babikir-Ahmed. Islamic Financial Instruments to Manage Short-Term Excess Liquidity . Jeddah: Islamic Research and Training Institute, Islamic Development Bank, 2001.

[74] Thammarak Moenjak. Central Banking: Theory and Practice in Sustaining Monetary and Financial Stability . Singapore: John Wiley & Sons Singapore Pte. Ltd., 2014.

[75] Yahia Abdul-Rahman. The Art of RF (Riba-Free) Islamic Banking and Finance: Tools and Techniques for Community-Based Banking . New Jersey: John Wiley & Sons, Inc., 2014.

[76] Frederic S Mishkin. The Economics of Money, Banking, and Financial Markets . New York: The Eddison-Wesley, 2004.

[77] Mohammad Daud-Bakar. “Shari'ah Principles Governing Takaful Models.” In Takaful Islamic Insurance: Concepts and Regulatory Issues , by Simon Archer, Rifaat Ahmed Abdel-Karim and Volker Nienhaus, 31–46. Singapore: John Wiley & Sons (Asia) Pte. Ltd., 2009.

[78] Akram Khan. Islamic Economics and Finance: A Glossary (2nd ed.) . London, UK: Routledge, 2003.

[79] Shariah Advisory Council Malaysia. Shariah Resolutions in Islamic Finance (2nd Edition) . Kualalumpur: Bank Negara Malaysia, 2010.

[80] Wahbah Al-Zuhaili. Al-Fiqh al-Islami wa Adillatuh (Arabic) . Damascus: Dar al-Fikr, 2002.