An Islamic money market operating worldwide among financial institutions adhering to Sharia law will likely go operational in October in Manama, reported the Gulf News on Monday.
The Bahrain Monetary Agency has taken the lead in establishing the project in coordination with Malaysia's Labuan Offshore Financial authority and Jeddah-based Islamic Development Bank.
"While Islamic banking services have been around for over 25 years, they have traditionally offered products for the medium or long term," said Murad Ali Murad, CEO and general manager of Bank of Bahrain and Kuwait (BBK).
"Bahrain is now working very hard to set up an Islamic money market and bring in instruments that use short-term liquidity." The products would be "equivalent to money market products" yet compliant with Sharia law, he told the paper.
“The October launch date is realistic and there must be a sense of urgency to implement the money market concept.”
Murad said that there is no conflict in Islamic banks using the Internet to offer electronic services. But he emphasized the need for a common protocol on e-security that would involve regional commercial banks, the regulatory agencies, external auditors, vendors and other allied sectors – Albawaba.com
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