CBO launches Islamic liquidity management project

A kick off meeting for the Islamic Liquidity Management Project was held between the Central Bank of Oman (CBO) and Thomson Reuters at the CBO premises.

This meeting comes in light of the selection of Thomson Reuters to develop innovative solutions and tools for liquidity management in the Islamic banking sector in accordance with Sharia and Islamic rulings.

The issue of liquidity management is one of the primary challenges facing the Islamic banking sector at present, due to several reasons, including the high liquidity levels with the Islamic banking entities compared to the conventional banks, with no options to deploy the excess liquidity as with the conventional banks.

The CBO’s Executive Management believes in the importance of developing effective and applicable tools and solutions that are compatible with the regulatory framework of Islamic banking in the Sultanate, and has therefore given its direct attention and top priority to this matter.