ISLI has been designed to enable financial institutions, both conventional and Islamic, to access short-term liquidity against the government of Bahrain Islamic leasing (ijara) bonds (sukuk), issued by CBB.
The new initiative reflects the bank’s continuing commitment and contribution to the Islamic finance industry, further enhancing Bahrain’s role as a world leader in the sukuk market. “The development of the uniquely structured ISLI represents a major breakthrough for the Islamic finance industry worldwide and will significantly enhance the sukuk market,” said Dr. Abdul Rahman Saif, CBB executive director, banking operations.
The availability of instruments such as this will help create a deeper and more liquid sukuk market, requiring a variety of short- and long-term instruments to enhance the Islamic banks’ ability to efficiently manage their liquidity. It will also stimulate and promote a more active Islamic financial market.
