Liquidity Management on the Basis of Tawruruq in Islamic Banks and Shariah Perspective
Abstract
Liquidity management in Islamic banks refers to an arrangement in which the bank is required to have enough cash to meet its daily needs(related to assets and liabilities).For example, if depositors want to withdraw money from a bank, the bank must have enough cash to meet their needs. Similarly, if the best investment opportunities are available, the bank still has enough money to buy cheap items easily, otherwise the bank's trust may be lost and the bank may lose the best investment opportunities. At present Islamic banks are using Tawarruq for this arrangement. What is Tawarruq and what is its legal status and whether its use in Islamic banks is permissible or not? All these issues have been studied in this article. Qualitative method has been employed in this research. The author concludes that Tawarruq should not be used as an investment technique and that even in times of dire need of cash, Tawarruq Fiqhi should be adopted, taking care of all the matters which the jurists have said to be adhered to. Author recommends that Shariah advisors keep an eye on all matters that are a backdoor for interest-bearing activities. In order to manage liquidity, the management of the bank should improve its internal operations and in external operations, mutual cooperation between banks should be enhanced, Qard e Hassan and investment in shares should be promoted as well as new products should be invented to manage liquidity.
Hafiz Rao Farhan Ali, Hidayat Khan. (2021) اسلامی بینکوں میں تورق کی بنیاد پر انتظامِ سیا لیت اور شرعی نقطہ نظر, AFKĀR (Journal of Islamic & Religious Studies) , Volume 5, Issue 1.
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