Liquidity for Islamic Banks to increase

Turkish authorities are preparing steps to increase the liquidity available to the country’s four Islamic lenders, known as participation banks, Hurriyet newspaper reported yesterday, citing Tevfik Bilgin, head of the bank regulator. The Turkish Central Bank is developing ways for the lenders to use the revenue-index bonds they hold to access short term lending from the central bank, Hurriyet said. There’s also a need for the development of an interbank market on which the banks, run on Islamic principles, can borrow and lend with one another, Bilgin said, according to the newspaper.