Mastering Islamic Liquidity Management

Mastering Islamic Liquidity Management

Course Description

Introduction

Welcome to the Mastering Islamic Liquidity Management course, presented by Cambridge for Global Training. This course offers a comprehensive understanding of liquidity management within the framework of Islamic finance. Participants will explore the principles, instruments, and strategies used to manage liquidity in compliance with Sharia principles while ensuring financial stability and efficiency.

Course Objectives

By the end of the course, participants will be able to:

• Understand the principles of Islamic finance and their implications for liquidity management.
• Analyse the challenges and opportunities in Islamic liquidity management in the context of global financial markets.
• Explore the key instruments and techniques used for liquidity management in Islamic financial institutions.
• Develop strategies for liquidity risk management and contingency planning in Islamic banking.
• Assess the role of central banks and regulatory authorities in promoting liquidity stability in Islamic financial markets.
• Enhance decision-making skills in managing liquidity in various Islamic financial products and structures.
• Apply theoretical knowledge to practical scenarios and case studies in Islamic liquidity management.

Who Should Attend

• Islamic Bankers
• Treasury Managers
• Risk Managers
• Financial Analysts
• Sharia Advisors
• Regulators
• Anyone interested in Islamic finance and liquidity management

Course Outline

Unit 1: Principles of Islamic Finance and Liquidity Management

• Overview of Islamic finance principles and prohibition of interest (riba)
• Concept of liquidity in Islamic finance
• Sharia-compliant sources of liquidity
• The importance of liquidity management in Islamic financial institutions
• Ethical considerations in Islamic liquidity management

Unit 2: Challenges and Opportunities in Islamic Liquidity Management

• Global liquidity trends and their impact on Islamic finance
• Liquidity risk management in Islamic banks
• Regulatory and structural challenges in Islamic liquidity management
• Opportunities for innovation and growth in Islamic liquidity products
• Case studies on successful liquidity management practices

Unit 3: Instruments and Techniques for Islamic Liquidity Management

• Islamic money market instruments: Mudarabah, Wakalah, and Murabahah
• Sukuk as a liquidity management tool
• Islamic interbank markets and liquidity management strategies
• Tawarruq and commodity murabahah arrangements
• Repurchase agreements (repos) in Islamic finance

Unit 4: Liquidity Risk Management in Islamic Banking

• Measurement and monitoring of liquidity risk
• Basel III liquidity standards and their implications for Islamic banks
• Liquidity stress testing and scenario analysis
• Asset-liability management (ALM) in Islamic banking
• Contingency funding plans (CFPs) and liquidity buffers

Unit 5: Regulatory Framework and Central Bank Intervention

• Role of central banks in Islamic liquidity management
• Regulatory requirements for liquidity management in Islamic financial institutions
• Liquidity coverage ratio (LCR) and net stable funding ratio (NSFR) for Islamic banks
• Central bank facilities and liquidity support mechanisms
• Collaboration between central banks and Sharia scholars in promoting liquidity stability