Islamic Money-Market Instruments: A proposal for the Nascent Islamic Banking Institutions in Republic of Benin
- Title
- Islamic Money-Market Instruments: A proposal for the Nascent Islamic Banking Institutions in Republic of Benin
- Abstract
- There is no gainsaying the fact that the money market is one of the most important components of the banking institution. This article proposes viable Islamic money market instruments from the experience of Malaysia and Nigeria for the nascent Islamic banking institution in the Republic of Benin. The money market is the mechanism for the management of the required liquid asset and statutory reserves in the banking system. It serves the purpose of the maintenance of minimum liquidity ratio and statutory reserve that represents the daily requirement of the banking institution. It is how the Central Bank passes monetary policies to the subordinate banks. The role of the money market in the banking system as a keeper of liquid assets rate it above other branches of the financial market. The proposal is derived from the experience of Malaysia, which is a leading Islamic banking jurisdiction, and Nigeria, which is a relatively new African Islamic finance regime. The study adopts a qualitative method.
- volume
- 39
- issue
- 1
- page start
- 85
- page end
- 92
- Date
- 2022
- Language
- Anglais
- Type
- Article de revue
- Subject
- Islamic banking
- Spatial Coverage
-
Bénin