Regulatory Alerts2022-01-03
Standard Re Liquidity at Islamic Banks
The Central Bank of the UAE issued a mandatory notice requiring all Islamic Banks and banks with Islamic Windows to comply with the new Standard Re Liquidity at Islamic Banks effective January 3, 2022. This standard establishes comprehensive qualitative and quantitative liquidity risk management frameworks, including specific ratios such as the Eligible Liquid Asset Ratio and Liquidity Coverage Ratio, tailored to Shari’ah-compliant operations. Institutions must integrate these requirements into their governance structures and report the measures to the Central Bank to ensure robust liquidity resilience.
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