Since liquidity infrastructures vary from country to country, the Islamic bank licensees operating across jurisdictions are expected to adhere to local requirements for liquidity management. In this regard, Islamic bank licensees which are part of a group should normally be expected to be able to stand alone, and thus, to monitor and manage their own liquidity separately. However, with the agreement of the CBB, branches of foreign banks operating in Bahrain may take into account the assurance of liquidity provision by head office to the Bahrain branch.
January 2013