Liquidity management in Islamic banking

Instruction Language

English

Country

United Arab Emirates

English Abstract

This course is designed to stimulate the thinking process and individual abilities of participants in relations to the development and structuring of treasury products from the perspective of liquidity, risk and asset-liability management for Islamic financial institutions.

Recent global regulatory trends have led to new challenges in liquidity management standards and demands to be met by treasuries across the industry, principally set out in the BASEL regulations.

In the context of these challenges and regulatory changes, this course will discuss the possible impacts on Islamic liquidity management and the way forward to meet new rules using available instruments.

Objectives

- On successful completion of this course, participants will be able to : -Examine and illustrate the key stages in liquidity and treasury management applied by Islamic financial institutions. -Discuss the characteristics of a wide range of Islamic contracts and their application in developing treasury products. -Understand key features of the Islamic money market instruments. -Explain and apply the techniques for hedging market risks in the utilisation of synthetic commodity transactions and built-in provisions in various underlying contracts. -Understand the implications of Shari’ah principles on Islamic financial markets activities. -Understand mechanics of Sukuk issuances and Islamic capital markets transactions within the liquidity management scope and their application in balance sheet management. -Understand recent market developments in relation to treasury products, hedging instruments and the effort to standardize treasury product cross Islamic financial centers. -Understand the implementation of BASEL III on Islamic liquidity management and the way forward.

Certificate / Course Program

Day 1 : Session one : introduction to liquidity management. Session two : Islamic financial markets. Session three : products used in Islamic liquidity management. Session four : recent market development of Islamic liquidity management products. Session five : practical-case studies. Day 2 : Session one : strategic ALM and liquidity risk for Islamic banks : the treasury priority agenda. Session two : Sukuk instruments as a key liquidity management tool. Session three : practical requirements for issuing Sukuk. Session four : overview of the global regulatory environment. Session five : practical-case studies.