Islamic Interbank Money Market: A Comparative Legal Study between Malaysia And Some Notable Jurisdictions

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

24 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)

Norashimah Mohd Yasin

International Islamic University of Malaysia (IIUM) - Ahmad Ibrahim Kulliyyah of Laws

Ahmad Hidayah Buang

University of Malaya (UM)

Date Written: January - March 2015

Abstract

The short term instruments of investment are generally required for the purpose of providing liquidity facilities for banks and other financial institutions to manage the mismatch in their liquidity portfolio. The same thing goes for companies that may be in need of money to pay the salaries of their employees or to meet the mismatch of other unexpected expenditures. The government also demands for liquid facilities at a time to meet its liquidity needs for infrastructural development and concurrent expenditures. Money market facilities are made available to bridge these gaps. The maturity period of the facilities ranges from overnight to one year. This article discusses the Islamic interbank money market, its functions and its instruments. It makes a comparison between the leading countries in the practice of Islamic banking. It therefore, proposed the adoption of the Malaysian framework of the market for the other jurisdiction, due to the fact that it is the most developed market in terms of regulations and availability of instruments. The discussion relies on the framework for guidance on the study.

Keywords: International Islamic Moeny Market, Regulations

JEL Classification: E52, K22

Suggested Citation

Olayemi, Abdul Azeez Maruf and Olayemi, Abdul Azeez Maruf and Hasan, Aznan and Ibrahim, Uzaimah and Mohd Yasin, Norashimah and Hidayah Buang, Ahmad, Islamic Interbank Money Market: A Comparative Legal Study between Malaysia And Some Notable Jurisdictions (January - March 2015). 2015 1 SHR, SHARIAH REPORT, A Journal of Islamic Law, Banking & Finance, Malaysian Current Law Journal (MCLJ), Available at SSRN: https://ssrn.com/abstract=2690359

Abdul Azeez Maruf Olayemi (Contact Author)

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

Kuala Lumpur
Kuala Lumpur, NJ 50728
Malaysia

Deartment of Shariah & Law ( email )

Kuala Lumpur, Kuala Lumpur 50603
Malaysia
0060149714610 (Phone)

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

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

Norashimah Mohd Yasin

International Islamic University of Malaysia (IIUM) - Ahmad Ibrahim Kulliyyah of Laws

P.O. Box 10, 50728
Kuala Lumpur
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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