:: Volume 3, Issue 8 (12-2014) ::
mieaoi 2014, 3(8): 123-146 Back to browse issues page
Discussing central bank funds deals in interbank market
Abstract:   (8104 Views)

Abstract In fractional banking, banks may dealing with deficit of reserves. But, some bank may have excess. So this demand and supply can reach each other at central bank funds market. Developed Central banks choose this market rate as operating target. Trades in this market in conventional banking conducted through loan contract which is forbidden in sharia. Moslem economist and jurisprudents try to offer alternative contracts. This paper introduces these alternatives for deals of banks with each other and banks with central bank separately and finally criticizes and evaluated them.

Keywords: interbank market, Islamic banking, central bank funds, required reserve.
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Article type: Research | Subject: General
Received: 2015/10/11 | Accepted: 2015/10/11 | Published: 2015/10/11


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Volume 3, Issue 8 (12-2014) Back to browse issues page