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As of the beginning of next month «Central» expands the scope of acceptable collateral to finance Islamic banks
Wednesday, March 25, 2015
Central Bank starts from the beginning of next month to expand «eligible collateral» for Murabaha covered by ensuring facilities, to include other securities consistent with the provisions of Islamic Sharia, as well as Islamic certificates of deposit issued by the bank, according to a notice for Islamic banks prompt, issued by the bank yesterday.
Under the new notice, it will be possible for Islamic Banks operating in the country to obtain funds from the central bank on the basis of per day by the deposit of eligible securities as collateral, through a tripartite guarantees the parties concluded a management agreement with either the «Clearstream Bnkenj SA» or «Euroclear SA / that in. »
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He said «Central» that would expand «eligible collateral» within the covered ensuring Murabaha facility, enabling Islamic banks to obtain liquidity from the bank in return for guarantees, similar to traditional banks within the framework of «marginal lending facilities».
The «Central» launched in April 2014 System «marginal lending facilities» for banks operating in the country, which allow the banks operating in the country to get the money from the bank on the basis of per day to ensure the eligible securities, issued the Central Bank yesterday notice expanded in stock compatible range with Shariah, eligible collateral.
Islamic banks will be under this Convention to deposit securities (warrants) in the custody of securities held by the central bank to the agent agreement triple accredited parties account, and you can then receipt of Murabaha covered facilities funds to ensure when needed in their current accounts at the central bank through Emirates system to transfer money.
He explained «Central» that the activation mechanism to ensure access to the covered Murabaha facility is complete once the signing of agreements and documents required mediated by Islamic banks under the terms and conditions of Murabaha covered by ensuring facilities.
And the central bank that within the securities accepted has qualified as collateral, fall direct instruments and instruments covered, and securities that are consistent with the provisions of Islamic law, short-term, within the UAE and foreign versions as collateral for transactions secured Murabaha facility, provided that they are quoted and negotiable, and exporting and denominated in dirhams The UAE and the US dollar or any other currency of the following currencies, which include the euro and the British pound and the Japanese yen, Swiss franc, Australian dollar and the currencies of the Gulf Cooperation Council and the Norwegian krone and Singapore dollar and Hong Kong dollar and the Malaysian ringgit. The class of the central bank instruments and securities eligible as collateral, which can be Islamic banks use to get the necessary funds from the Central Bank in accordance with this notice, into five categories include high-quality, issued by the federal government and local governments in the UAE and its affiliates instruments, foreign governments and their agencies , as well as companies and the UAE, the local sovereign bodies, financial institutions and banks associated with the agreements with the Central Bank of the UAE.
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Include securities eligible also investment instruments, secured from the local government authorities, also includes other investment instruments subject to the rule of the UAE Central Bank, and secured from those of local governments as well as local companies, and securities issued by compliant UAE banks with the provisions of Islamic Sharia.
It also includes instruments without investment, subject to the same as the previous guarantees.
As well as securities issued directly from local governments, which do not carry any acceptable credit rating, which is subject to evaluation by the central bank in this case.
It is noteworthy that the Islamic certificates of deposit balance at the central bank declined during the month of January, about 36.9% of its total decline to 12.5 billion dirhams at the end of January 2015, compared with 19.8 billion dirhams at the end of December 2014.
Certificates of deposit and is considered one of the indirect monetary policy issued by the central bank to help the banks operating in the country, including Islamic banks on excess liquidity management has the tools.
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Wednesday, March 25, 2015
Central Bank starts from the beginning of next month to expand «eligible collateral» for Murabaha covered by ensuring facilities, to include other securities consistent with the provisions of Islamic Sharia, as well as Islamic certificates of deposit issued by the bank, according to a notice for Islamic banks prompt, issued by the bank yesterday.
Under the new notice, it will be possible for Islamic Banks operating in the country to obtain funds from the central bank on the basis of per day by the deposit of eligible securities as collateral, through a tripartite guarantees the parties concluded a management agreement with either the «Clearstream Bnkenj SA» or «Euroclear SA / that in. »
adverttop.png
advertbottom.png
He said «Central» that would expand «eligible collateral» within the covered ensuring Murabaha facility, enabling Islamic banks to obtain liquidity from the bank in return for guarantees, similar to traditional banks within the framework of «marginal lending facilities».
The «Central» launched in April 2014 System «marginal lending facilities» for banks operating in the country, which allow the banks operating in the country to get the money from the bank on the basis of per day to ensure the eligible securities, issued the Central Bank yesterday notice expanded in stock compatible range with Shariah, eligible collateral.
Islamic banks will be under this Convention to deposit securities (warrants) in the custody of securities held by the central bank to the agent agreement triple accredited parties account, and you can then receipt of Murabaha covered facilities funds to ensure when needed in their current accounts at the central bank through Emirates system to transfer money.
He explained «Central» that the activation mechanism to ensure access to the covered Murabaha facility is complete once the signing of agreements and documents required mediated by Islamic banks under the terms and conditions of Murabaha covered by ensuring facilities.
And the central bank that within the securities accepted has qualified as collateral, fall direct instruments and instruments covered, and securities that are consistent with the provisions of Islamic law, short-term, within the UAE and foreign versions as collateral for transactions secured Murabaha facility, provided that they are quoted and negotiable, and exporting and denominated in dirhams The UAE and the US dollar or any other currency of the following currencies, which include the euro and the British pound and the Japanese yen, Swiss franc, Australian dollar and the currencies of the Gulf Cooperation Council and the Norwegian krone and Singapore dollar and Hong Kong dollar and the Malaysian ringgit. The class of the central bank instruments and securities eligible as collateral, which can be Islamic banks use to get the necessary funds from the Central Bank in accordance with this notice, into five categories include high-quality, issued by the federal government and local governments in the UAE and its affiliates instruments, foreign governments and their agencies , as well as companies and the UAE, the local sovereign bodies, financial institutions and banks associated with the agreements with the Central Bank of the UAE.
adverttop.png
advertbottom.png
Include securities eligible also investment instruments, secured from the local government authorities, also includes other investment instruments subject to the rule of the UAE Central Bank, and secured from those of local governments as well as local companies, and securities issued by compliant UAE banks with the provisions of Islamic Sharia.
It also includes instruments without investment, subject to the same as the previous guarantees.
As well as securities issued directly from local governments, which do not carry any acceptable credit rating, which is subject to evaluation by the central bank in this case.
It is noteworthy that the Islamic certificates of deposit balance at the central bank declined during the month of January, about 36.9% of its total decline to 12.5 billion dirhams at the end of January 2015, compared with 19.8 billion dirhams at the end of December 2014.
Certificates of deposit and is considered one of the indirect monetary policy issued by the central bank to help the banks operating in the country, including Islamic banks on excess liquidity management has the tools.
[You must be registered and logged in to see this link.]
