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Abstract

Liquidity management is concerned with the ability of the bank to finance the increase in its assets and to meet its obligations in cash on time without incurring unusual costs. Traditional banking has developed a contractual structure, a legislative environment and a set of financial instruments that enable commercial banks to achieve this requirement easily. The problematic of research lies in the difference of the nodal structure of Islamic banks, the shortage of their financial instruments, and in the lack of consistency of their activity with the legislative environment governing it. The study examined the mechanisms of liquidity management and its existing tools: its legitimacy and effectiveness, in addition to considering the evaluation of the opportunities for improving liquidity management under the existing institutional situation on one hand. on the other hand the paper hope to pointe an alternative vision for restructuring the banking system to leave the culture of borrowings and its guaranteed returns toward the culture of participation and its fates.

Keywords: Liquidity management, Liquidity risk, Legislative environment, Islamic Banks.

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