SBP Introduces Shariah Compliant Open Market Operations For Islamic Banking

In line with State Bank’s strategic plan to improve Liquidity Management Framework for Islamic Banking industry and enhance the effectiveness of monetary policy implementation, SBP has introduced Shariah Compliant Standing Ceiling Facility and Open Market Operations (injections) for Islamic Banking Institutions (IBIs).

As the size of the Islamic banking industry is increasing, SBP recognizes the need to introduce Shariah-compliant liquidity facilities for IBIs. With a view to bring IBIs at par vis-à-vis their conventional counterparts in terms of liquidity management avenues, and to enhance SBP’s tools for managing market liquidity as part of its monetary policy objective, SBP has introduced the aforementioned facilities.

Read more here