Islamic Banking Infrasrtucture

Liquidity Management Center (LMC)

The Liquidity Management Center (LMC) is a Bahraini shareholding company established in 2002 and licensed as an Islamic investment bank. It aims to enable Islamic financial institutions to manage their liquidity through short-and medium-term investments in accordance with the principles of Islamic Sharia.

The center also aims to address the problem of increasing or under-liquidity of these institutions by using investment instruments and encouraging dealing with the liquidity Management Center. The center also contributes to the preparation of strategic plans for managing liquidity and balancing the resources of banks with liquidity and their uses.

Liquidity risk is the inability of an enterprise to meet its funding requirements. These risks occur when there is a market disturbance or when the credit level decreases, leading to a reduction in some of the available funding sources. The Liquidity Management Center aims to reduce these risks, so one of the shareholders is actively involved in the market for the initial versions of the sukuk by arranging these publications or acting as a consultant. The Center also establishes the secondary market for the trading of Islamic Sharia compliant investment instruments for short term. The center has the professional ability to arrange compatible investment instruments, Islamic sharia and for different time periods.

In October 2005, the Liquidity Management Center in Bahrain launched its website, which is to record and monitor the movement of supply and demand for sukuk, in order to contribute to the creation and establishment of an active secondary market for sukuk (equity bonds) and to advance the development of the Islamic banking sector to develop and expand The primary and secondary markets in order to develop the Islamic financial market.


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