Non-Interest (Islamic) Liquidity Management in the Nigerian Non-Interest Banking: A Legal Study from the Experience of Malaysia

[2015] 1 SHR, SHARIAH REPORT (A Journal on Islamic Law, Banking & Finance), Malaysian Current Law Journal (MCLJ)

15 Pages Posted: 18 Nov 2015

See all articles by Abdul Azeez Maruf Olayemi

Abdul Azeez Maruf Olayemi

Department of Shariah and Law, API, University of Malaya,; Deartment of Shariah & Law

Aznan Hasan

International Islamic University of Malaysia (IIUM)

Uzaimah Ibrahim

International Islamic University of Malaysia (IIUM)

Ahmad Hidayah Buang

University of Malaya (UM)

Date Written: April - June 2015

Abstract

One of the major potential challenges before the nascent non-interest (Islamic) banking product in Nigeria is the absence of adequate and viable Shariah-compliant instruments of liquidity management. The availability of the instrument is a sine qua non in the banking system. Conversely, Malaysia being the global hub of the Islamic banking and finance has successfully developed viable instruments for the management of Islamic liquidity. The Malaysian instruments are comparably in juxtaposition with that of the conventional system in terms of sophistication and development. The article advocates for the adoption and adaptation of the Malaysian model of Islamic liquidity management instruments into the Nigerian banking system as a panacea. The research is a qualitative comparative legal study. It aims at proposing solution to the lingering problem of non-interest liquidity management in the Nigeria nascent non-interest banking product.

Keywords: Non-Interest Liquidity Management, Nigerian, Malaysia

JEL Classification: E52

Suggested Citation

Olayemi, Abdul Azeez Maruf and Olayemi, Abdul Azeez Maruf and Hasan, Aznan and Ibrahim, Uzaimah and Hidayah Buang, Ahmad, Non-Interest (Islamic) Liquidity Management in the Nigerian Non-Interest Banking: A Legal Study from the Experience of Malaysia (April - June 2015). [2015] 1 SHR, SHARIAH REPORT (A Journal on Islamic Law, Banking & Finance), Malaysian Current Law Journal (MCLJ), Available at SSRN: https://ssrn.com/abstract=2690305

Abdul Azeez Maruf Olayemi (Contact Author)

Deartment of Shariah & Law ( email )

Kuala Lumpur, Kuala Lumpur 50603
Malaysia
0060149714610 (Phone)

HOME PAGE: http://umexpert.um.edu.my/ma1129uk

Department of Shariah and Law, API, University of Malaya, ( email )

Kuala Lumpur
Kuala Lumpur, NJ 50728
Malaysia

Aznan Hasan

International Islamic University of Malaysia (IIUM)

P.O. Box 10
Jalan Gombak
Kuala Lumpur, selangor 50728
Malaysia

Uzaimah Ibrahim

International Islamic University of Malaysia (IIUM)

P.O. Box 10
Jalan Gombak
Kuala Lumpur, selangor 50728
Malaysia

Ahmad Hidayah Buang

University of Malaya (UM)

Kuala Lumpur, Wilayah Persekutuan 50603
University of Malaya (UM)
Kuala Lumpur, Wilayah Persekutuan 50603
Malaysia

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