ISLAMIC CAPITAL MARKET (IMU 600)

Title:
ISLAMIC MONEY MARKET

LECTURER: MS NURUL AIN BINTI MOHD

Prepared by:

Name Matric Number

.1 NUR ALIFAH ILYANA BT SHAIFUL 2017981791

ZAMAN

2. RABIATUL ADAWIYAH BINTI JAAFAR 2017904983

3. SITI MARYAM BINTI MD ZAINI 2017360691

Class: IC2105B
“I hereby certify that at all times the assignments I submit are my own work,
not imitating and plagiarising from any source, or attempting to impersonate
any party without proper citation I am aware that any student who violates or
suspects violations of all assignment may be referred to the Faculty
Disciplinary Committee”
 Table of Content

Aspect Page

1.0 Introduction 1

2.0 Finding Discussion 2

2.1 Definition Islamic Money Market 2

2.2 Characteristic of Islamic Money Market 2-3

2.3 Roles of Islamic Money Market 3-4

2.4 Islamic Money Market Principle Instruments 4-5

2.5 Difference Between Islamic Money Market and 6-7

Conventional Money Market

2.6 Who Participate in Islamic Money Market 7-8

2.7 Islamic Money Market in Malaysia 8-10

2.8 Managing Liquidity in Islamic Money Market 11-14

3.0 Conclusion 1215

4.0 References 16
1.0 Introduction

In Malaysia, the banking system is considered very important for

economic development. In addition, in the 1980s, Islamic Banking in Malaysia
was introduced by developing a policy of replication, which essentially
transformed the source and utilization of conventional bank funds into an
acceptable product of Islam. Therefore, on the liability side, the savings account
and the current one become the Al-Wadiah account, while the savings remain
the Mudarabah public investment account.

Therefore, Bank Negara Malaysia (BNM) has introduced Islamic money

market which is to additionally advance Islamic financial framework in Malaysia.
Toward the beginning of Bank Islam Malaysia Berhad (BIMB), the point was to
advance more people who could participate in the Islamic banking system. In
addition, they also promote and encourage conventional banks to participate in
the system banking of Islam. Therefore, BNM are finding a way to present
Interest-Free Banking Scheme (IBS). Finally, the scheme was called Islamic
Banking Scheme which is to promote the comprehensive Islamic money
market.

Subsequently in 1994, Bank Negara Malaysia (BNM) has introduced

Islamic money market to promote the mobilization of funds of banks that have
surplus funds to banks in deficit or lack of funds which to meet their liquidity
infusions that are available in the Islamic financial system. This means that, the
objectives of the bank monetary operations in the Islamic money market is to
guarantee that the liquidity must sufficient for the functioning in the Islamic
interbank money market. In addition, the objective is to execute in the
conventional money market, which is the interest rate based on the funding
instrument.

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2.0 Finding Discussion

2.1 Definition of Islamic Money Market

Islamic money market is the financial that providing the short-term for
borrowing and lending which are maturity usually less than one year. Generally,
in this money market, the banks usually lend to and borrow from each other
using the short-term financial instruments. Islamic money market also provides
short-term maturity liquidity in the global financial system. They used financial
instruments such as the Negotiable Islamic Certificate of Deposit (NICD),
Government Investment Issues (GIIs) or other instruments such as Islamic
Accepted Bills (IABs) and Islamic Treasury Bills (ITBs). (Ausaf, 1997)

In addition, the bank likewise impacts Islamic interbank market liquidity

through shariah-compliant instruments which is the principle is the Qard
acceptance (loan). Through this Qard acceptance, the bank will oversee
liquidity with regards to the overflow finance and inviting Islamic bank
institutions to put their funds with the banks. Also, bank utilizing the Commodity
Murabahah Programme (CMP) to manage liquidity. This Commodity
Murabahah Programme (CMP) using the principle contract that are utilized by
palm oil-based based agreements as the fundamental item exchanges to
encourage liquidity the executives through a product exchanging stage, for
example, Bursa Suq Al Sila', or other ware suppliers. This money market offers
short-term funding for individuals, businesses and the government. (Obiyathulla
Ismath Bacha, 2008)

2.2 Characteristic of The Islamic Money Market

There are several characteristics in the Islamic money market. First

characteristic is the transaction volume which involves huge sum of money. This
means that, the bank that are lending their money in huge sums to invest for a
short-term maturity. For examples Islamic Treasury Bills (ITB) amounted to
RM1.7 billion in April 2005 while Bank Negara Negotiable Note-i (BNNN-i) had
an outstanding amount of RM6.5 billion.

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 Second characteristic is the low risk of default in the Islamic money
market. To ensure that there is a low risk, the government provide a more
progressively auxiliary system for the Islamic money market. They provided an
appropriate guideline, laws and the method to ensure that the transaction
between parties are performed. In addition, to ensure the transparency in the
market run smoothly, in August 2002, the government provide a guideline for
Sell and Buy Back Agreements (SBBA) and also provide a guideline for Islamic
Negotiable Instruments (INIs). These guidelines are provided to ensure fairness
transactions between various parties and to reduce the risk. (Hanudin Amin,
2013)

Third characteristic is the instruments to be transacted in the Islamic

money market have maturity of less than a year. This is because Islamic money
market usually more widely traded than long-term maturities due to its liquidity.
In addition, this Islamic money market securities are more liquid. These
securities are executed with Islamic teaching using of Islamic principles such as
al-inah principle in Government Investment Issues (GIIs). Also, other securities
of the market are Islamic Treasury Bills (ITBs), Islamic Accepted Bills (IABs)
and Bank Negara Negotiable Notes-i (BNNNi). These securities are some of
examples in Islamic money market instruments or securities. (Muhammad M
Ma'aji, 2015)
Forth characteristic is the instruments to be traded in the Islamic money
market is shariah-compliant. This means that, there is no prohibited element
found in this money market such as usury, gharar, maisir and others. They are
only accepted profit rates in this Islamic money market. This profit rate must-
fixed to shariah rulings and able to reduce the risk. In addition, to ensure that
the instruments are shariah-compliant, Islamic principles provided bay al-inah,
qard hassan, mudharabah, bay al-dayn and others. (Mohd Faisol Ibrahim,
2013)

2.3 Roles of The Islamic Money Market

As we know, Islamic money market is a placed that provide a short-term
lending and borrowing within a year. Commonly, this money market functioned

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to get closed with the economic units which are to limit the hole between the
money receipts and instalments such as liquidity. There are several roles that
be functioned by Islamic money market.
First roles in Islamic money market is to provide investment
opportunities. This means that, any investor that have surplus fund can involve
in this investment that are using Islamic instruments which are shariah-
compliant such as mudharabah, bay al-dayn and bay al-inah. With this Islamic
instrument, the investor will not worrying about where the money goes to while
invest because this Islamic instrument does not have any prohibited element.
Second roles are working capital. This money market provides the
working capital which are to satisfy for the necessity that related to business or
any other working. This means that, someone that want to start a new business
but does not have any capital can apply this Islamic money market to get a short
fund. Also, this money market provided for the government to get a short-term
funds as substitution for the tax collection.
Third roles in Islamic money market is liquidity, this money market
provides a method or alternative which are can raising funds by converting the
securities and financial assets in the form of cash. This means that, all the asset
that want to convert into cash can be quickly and run smoothly.
Forth roles in this money market can be the warehouse for surplus fund.
In this money market, they provide for the any firms or financial institutions that
are have surplus fund can keep their fund into this warehouse until they are
needed. In other hand, this money market also provided a short-terms fund to
this firms and financial institutions if they want to use it at the low-cost sources
of funds.
Lastly is policy determination. This money market is adherence to
government strategies which are to point by accomplishing the objectives that
can affected to the high employment, low inflation, economic growth, also the
stability for the economic.

2.4 The Islamic Money Market Principle instruments

As we know, any deficit units can raise funds from Islamic money market
to borrowing from interbank parties through the sale of paper or they also can

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borrow from the Central Bank. In addition, to participate in this Islamic money
market, they must involve into the financial instruments that are based on the
shariah-compliant. Any instruments that are against shariah principles, they
must to avoid and cannot accepted. There are several principle instruments in
this Islamic money market.

First instrument is Bay Bithaman Ajil (BBA). This contract is an

agreement that involves two parties who make a sale and purchase transaction
for the financing of the asset and the price is paid deferred according to the
terms that agreed in the agreement. In addition, the selling price that set will
include a profit margin.

Second instruments are Bay al-Inah. This transaction involves the seller
that buy-back on an asset. In other hand, the seller will sell the asset to the
buyer on the deferred payment. Later, the seller will buy back the same asset
in cash but in lower price than the original price.

Third instruments are Mudharabah. In this contract, the transaction will

involve two parties to finance a business project. First parties will be known as
Rabb al-Mal or investor that provide the capital. Second parties will be known
as Mudarib or the entrepreneur that manage the project. From this project, if
they gain a profit, the profit will distribute according to the prescribed ratio that
based on the agreement. But if the project suffered loss, the lost will be held
responsible by the investor or Rabb al-mal. This is because the Mudarib is just
to manage the project while the investor that are provide a capital.

Forth instruments is Murabahah. This contract refers to the sale and

purchased transaction of the financing for the asset or project. In addition, the
costs and the profit margin will be informed and agreed to by all parties based
on the agreements. Thus, the purchases will be settled through cash or in
instalment according to the agreement that was agreed by all parties.

Fifth instruments are Musharakah. This contract involves two or more

parties to finance the project. This is because all parties will contribute capital
account in the form of cash or pounds in whatever form. In other hand, any profit
that derived from the project will be distributed to all involved with according to
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the ratio specified in the agreement. In the event of a risk of loss, it will be based
on equity participation.

Sixth instruments are Qard Hassan. Qard hassan is a loan contract

involving two parties. It is done on basis of social welfare to meet the financial
needs of the borrower in the short term. Therefore, the borrower must pay the
same amount to the lender. However, if the borrower is willing to pay more than
what he has borrowed, the transaction remains valid if both parties agree.

Seventh instruments are bay al-Dayn. Bay Al Dayn (Debt Sale) is one of
Islamic financial products. On the other hand, it is a receipt or deferred
purchase. It is a contract of sale which is the creditor have the right to sell
receivables to the debtor either to the debtor himself or to a third party.

Lastly is hibah, hiwalah, and ibra’. Hibah is a voluntary gift to a person.

Hiwalah is a contract by which the debtor can transfer the debt to a third party.
This means that the third party will have to accept the debt due from the old
debtor. Ibra’ is the action of a person who reclaims his right to demand debt
from a debtor who is obliged to pay his debt. This means that a debtor does not
have to pay the debt because the lender has pulled its right to collect the debt.

2.5 Differences Between Islamic Money Market and Conventional Money

Market.

As we know, conventional banks operate under the concept of lender-

borrowing relationships where the interest will be treated as rental income on
capital. Deposits will be considered capital providers. In addition, bank profits
are distributed at the discretion of the bank management. There are several
aspects that can make a difference between Islamic money market and
conventional money market. (Fahad Ahmed Qureshi)

First aspect is based on the philosophical and ethical view. In Islamic

money market, it’s known as non-secular. This is because the philosophy is
based on the shariah principles which is the individual are not considered as
owner of his property. While in conventional money market, it is based on the
secular philosophies and principles. This means that, it considers the individual

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as the owner of an exclusive right over his property with his wealth. (Mohd
Zulkifli Muhammad, 2013)

Second aspect is from issuance process. In Islamic money market,

transaction or agreement must been approved by the financial regulator as well
as by the relevant shariah. This is because to ensure that the process will not
against with shariah compliant. While in conventional money market, they must
get approved by the relevant financial regulator only.

Third aspect is type of structure. In Islamic money market, the structure

is based on the assets, equity, and debt. And the utilities that are based on the
shariah compliant such as murabahah, mudharabah, wakalah and so on. While
in conventional money market, the structured only based on the contract of loan.

Forth aspect is profit generate. In Islamic money market, the profit

generated from profit sharing and loss, gift and compensation are not known as
interest rate. This is because the concept of giving gifts or compensation will
generate more wealth distribution and more equitable between the parties
involved. While in conventional money market, the profit generate is from
interest rate that are offered by the market. In addition, interest rate movements
can affect the value of almost all securities. This means that it may have a direct
influence on the market value of debt securities in the money market and
interest rates are the fundamental determinant of the market value of each
security.

Fifth aspect is investor. In Islamic money market, both which is Islamic

and conventional can invest in this money market. While in conventional money
market, only the conventional can invest in their money market.

2.6 Who participate in Islamic Money Market in Malaysia?

As we know, Islamic Money Market is a short-term borrowing and lending

which is less than a year. This financial is usually used by the big company with
the bank or interbank, this is because the liquidity is very fast. It is can be less
than a day. Whenever the amount involving is a huge amount which is if we
joint the Murabahah contract, the minimum amount for tis financial is RM50 000.

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This amount of money only can be invested by the big company or else with
interbank to higher the liquidity. It is a low risk default which is structured with a
safer security by the government. This financial is created by Bank Negara
Malaysia to promote a comprehensive systematic Islamic, so this is the one and
only our Malaysia centre bank. They wanted the best security for our country.
The most important part and the speciality is at the Shariah Compliant financial.
Nowadays, people who is without an Islamic company also wanted to do
financial at Islamic places because of the disclosure and the security. There are
a few participate among the company who is joining the Islamic Money Market
in Malaysia.

The first one is Central Bank, Bank Negara Malaysia (BNM). There are
two phases in 1983 which is conducted by Bank Negara itself. The first phases
they wanted to make sure they developed the large amount of Islamic
institution. They spread the awareness about the benefit of using Islamic Money
Market in Malaysia. At the second phases, they start to develop the larger
number of Islamic products at each branch. As we can see Bank Negara has
the best plan to bigger the comprehensive of using Islamic product. First, spread
the positivity of using Islamic Money Market in Malaysia and then they added
the product of the Islamic Money Market in Malaysia so that their customers
have many choices without using any other product.

The second one is a commercial bank including Islamic banking and

conventional banking in Malaysia the more the bank invested or do the financial,
the more liquidity of money will they get from this investment. They have to
make sure they are rolling money activities everyday if there is no customer on
that day, they also can invest and get the profit. This actually happened to a
surplus company. They have more money and they will lend the money to the
deficit bank and at the end of the period they will get the profit using the way of
calculation of each akad.

The third one is business, this is a command activity, whether they will
do financial with other business company or they will do a financial with a bank.
Bank will want to have more profit. Usually bank as a surplus and then the
business company act as a deficit, the company have to use the money in a
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rush time and the bank always have it but with a profit. Here is the win situation
for both sides.

The last one is an investment company. As we know, investment

company also need to use the amount of huge money. In this opportunity,
Islamic Money Market in Malaysia provided their needy. Even insurance
company joining financial activities because it is worthy and more than enough
if we compare to any other company.

2.7 Islamic Money Market in Malaysia.

In Malaysia, the Islamic money market comprises the interbank market,

where the lending and borrowing of short-term funds takes place; and the
market for short-term money market papers, consisting of GIIs, ITBs, IABs and
Islamic Negotiable Instruments of Deposit (INID). The market is integral to the
smooth functioning of the Islamic banking system. Normally, the idea of having
a money market is to mobilise resources for financing surplus or deficit
economic needs. There are three types of Islamic Money Market in Malaysia.
The first one is trading of Islamic financial institution, second is Mudarabah
interbank investments (MII) and the last one is Islamic interbank cheque
clearing system (IICCS).

1. Trading of Islamic financial instrument

This first type is for the deficit unit is a party who has shortage funds and
wishes and hoping that to use the fund for investment and consumption for
investment purpose. As we can see, there are company that needed helps but
they used this type of instrument. Then a surplus unit is a party who has exceed
of the fund and they wish to lend them to the deficit unit but with a profit
according to the period that they have decided. This situation usually has been
between a bank institution and in this case, surplus bank could take advantages
of a fruitful investment by lending funds out to the deficit bank for profit.

2. Mudharabah Interbank Investment (MII)

The MII refers to a mechanism whereby an Islamic bank with surplus funds
can invest in a bank facing a deficit based on mudarabah. People usually using
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this type of akad because it is a common akad and it is more profitable than
others. Moreover, this akad is available at all of the branches that Bank Negara
was provided because this akad is one of the popular among this financial
institution. The best part of this akad is the ratio is negotiable among the
investors according their sides. And period of the investment is from night to 12
months. The minimum amount is a bit huge which s RM 50,000. There are a
formula and an example for this akad to make easier to understand the
situation.

FORMULA

X = [ PRT (k) / 3650]

X = amount of profit to be paid to the provider of funds

P = principle of investment

R = rate of gross profit

T = number of days invested

k = profit sharing ratio

In addition, the profit-sharing ratio is based on the tenor of investment, which

can be described as follows:

The first one is if less than 1 month, the profit sharing ratio is 70:30 where
70% will go to rabbul mal (provider of funds).the second one if it is more than 1
month, but not exceeding 3 months, the profit sharing ratio is 80:20. And the
last one if it more than 3 months, the profit sharing ratio is 90:10 where the
rabbul mal will earn 90% of the total investment.

Case 1: Suppose that, Public Bank provides Bank Muamalat Malaysia Berhad
(BMMB) RM10,0000000 for a period of three months, with a profit sharing ratio
of 80:20. Public Bank at this point of time, would not know the exact rate of
return as the formula is only crystallized into actual figures towards the end of
the three month period. At the end of this period, BMMB returns RM10 million

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plus a share of BMMB’s profit from the use of funds, calculated on the basis of
the standard formula and the profit sharing ratio of 80:20. If BMMB’s profit rate
for one year’s investments is 9% per annum the profit element that BMMB pays
to Public Bank for the three-month period is calculated as follows:

• X = (10,000,000 x 9 x 90 x 0.8) / 36500 = RM 177,534.25

• Thus, Public Bank will earn RM 10,177,534.25, whereby BMMB will earn RM
44,383.56 from the transaction

3. Islamic interbank cheque clearing system (IICCS)

This akad is using the same formula as Mudharabah and the profit
sharing is about 70:30 and it is fixed ratio. If wanted to flexible ratio, you can
go to MII akad. The speciality here is they required all Islamic banking to
maintain wadiah and required the funding position between surplus and
deficit during the cheque clearing at midnight.

2.8 Managing Liquidity in Islamic Money Market

1. Islamic Treasury Bills

Islamic Treasury Bills are issued by the government at some discount and it
have his own due date that need to be followed by the owner who own it. The
discount that were given in the bills are also based on Shariah compliances
which means all of the rules are based only Shariah and did not include the
things that forbidden in Islam. Islamic Treasury Bills is one of the short-term
funds that were used by bank as long as the bank accept its or the rules of the
Islamic Treasury Bills is suitable with what the bank want gives to their
customer. So that, Islamic Treasury Bills is one of the instruments that include
in Islamic Money Market that were used by a company which still suitable with
the rules that have for their customer.

2. Islamic Negotiable instrument (INI)

Islamic Negotiable Instrument or known as INI is the written order promising

that the customer need to pay a money with a sum value or mark-up price to
the creditor with the agreed ways both of the customer and the creditor. INI also

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divide by two categories, first Islamic Negotiable Instrument of Deposit or INID
and next is Negotiable Islamic Debt Certificate or NIDC.

• Islamic Negotiable Instrument of Deposit (INID)

This category is based on Mudharabah concept which is the agreement

between the bank and the customer who participate in the financial activity that
were stated by the bank. For INID, the customer or investor will deposit the
money through Islamic Financial Institution or IFI. They also issued the
certificate of INID which been the evidence that the deposit was accepted. The
maturity of this instrument must up not least than 10 years and the nominal
value of the deposit also must RM 50000 only. INID as their own profit which
means the profit that the ratio has been agreed by both parties which followed
the concept of Mudharabah.

• Negotiable Islamic Debt Certificate (NIDC)

Negotiable Islamic Debt Certificate or NIDC is a form of the deposit that

made from customer to the bank through Bai’ Bithamanil ‘Ajil (BBA) which is
known as deferred payment basis. BBA is a sale of goods based on deferred
payment basis where the bank will buy the asset that request by the customer
by cash and resell it back to the customer by deferred payment basis with mark-
up price. But, under NIDC bank will sell the asset to the customer by cash and
the customer will sell the asset back to the bank and the bank will issues a
certificate of debt that also known as Shahadah al- Dayn as evidence of the
debt from the bank to the customer. This term of NIDC has their own step which
is first Islamic bank will sell the asset to the customer by cash and secondly, the
customer or investor will resell the asset to the bank with mark-up price and the
bank need to settled it into the agreed due date . the mark up price is a benefit
for the investor itself.

3. Government Investment Issues (GII)

The main purpose of GII is to hold the liquid securities until they meet their
status of liquidity requirements and to park their idle funds. The Malaysian
parliament was issued the act that called Government Investment Act 1983. In

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this act, they permitted the issuance of non-interest bearing of certificates that
also known as Government Investment certificate (GIC). Then, it is been
replace by Government Investment Issues under the concept of Qard Hassan.
But, Qard Hassan is not permitted it on secondary market so the central bank
started the window to facilitate the purchase and sale of the securities by market
participant itself. The price of the securities is set up by central bank which to
maintain the movement of GII.

In 2001, Malaysia has issued 3 years of GII under the concept Bai’ ‘Inah. It
was designed to add depth to the Islamic inter-bank money market by permitting
it into secondary market through Bay’ Dayn.

4. Bank Negotiable Notes (BNN)

BNN is a short-term instrument that issued by central bank in concept

Bay’ ‘Inah and was introduced in November 2000 and also tradeable in
secondary market. BNN is also one of the instruments that play the role of
treasury bills in traditional banking and are highly attractive for 3 main reason
which is as default risk free, highly liquid with deep secondary market and sold
at pure discount to their real value. This showed when the price of the notes is
based on discount basis that stated by central bank for maximum term of one
year.

5. Islamic Accepted Bills (IAB)

IAB was introduced in 1991, to promote the domestic and foreign trades
by providing merchant with Islamic trades finance product. It is also interest-free
Islamic money market instrument. IAB is formulated by Murabahah and bay’
Dayn and it is equivalent to the traditional banker’s acceptance that used
primarily to finance foreign trade. In IAB, there is two types of financing which
is import and local purchase and export and local sales.

• Import and local purchase

This way is stated under Murabahah concept which is cost-plus financing

and Islamic financing structure in which the seller and buyer agree to the price
stated. Under this concept, the commercial banks appoint the customer as the
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purchasing agent for the bank. Then, the customer purchased the goods on
behalf the bank and resell the goods to the other customer with mark-up price
that has agreed by them and the customer is allowed to pay it by deferred
payment basis. If the bank wants to sell the goods to the third party, they were
allowed to do that with the concept of Bay Dayn with agreed price.

• Export and local sales

This transaction is based on concept Bay’ Dayn. The exporter who has
been approved by IAB will prepare the document as required under the sales
contract and will be sent to the importer’s bank. The exporter will draw on
commercial bank a new bill of exchange as a substitution bill which means it will
become the IAB and lastly the bank will purchase the security wit Bay’ Dayn
concept which is has agreed by both parties and proceed it into exporter
account.

This is example of the bank that used Islamic Accepted Bills:

• CIMB ISLAMIC

They used IAB based on concept of Tawarruq which refers to purchase and
sale of the asset to the customer by deferred payment basis and the subsequent
sale of the asset by customer to third party to get by cash.

The benefit of IAB in CIMB Islamic is it is more cost effective on financing

in RM due to being negotiable in secondary market and been used by everyone.
Then, the alternative mode of financing is easy to finance the purchase for the
import and the export and last but not least, it is also used minimal
documentation which is involved only invoice and import or export document.

For the fees charge, if they used the postage they will charge RM5 for in
Malaysia and RM10 for the other country. For courier, they charge only RM20
in Malaysia and Actual cost plust RM20 for the other countries. And if their
customer used RENTAS payment just need to pay RM5 for the transaction
either in Malaysia or others.

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3.0 Conclusion

In conclusion, the success of the Islamic money market stems from the
government when it introduced the Islamic Interbank Money Market in 1994
which is to promote the purchase and sale of Islamic financial instruments. In
addition, Bank Islam and Islamic Bank Scheme (IBS) banks became the basis
for the emerging Islamic money market which was finally established.
Therefore, it is hoped that these banks will be able to cooperate in creating
short-term funds for those involved. Thus, the Islamic money market has given
these banks flexibility in the management of their funds, which by allowing
surplus banks can obtain returns and can also provide short-term funds that are
ready for banks with deficits or shortages.

In addition, the expansion of the money market is also expected to

contribute to the growth of the Islamic fund industry worldwide. Moreover,
coupled with the growing selection and diversification of Shariah-compliant
financial solutions and instruments supported by various multilateral
organizations and regulatory bodies, are among the key drivers of the Islamic
financial industry. We can also highlight the differences between the Islamic and
conventional money markets which can be distinguished by several aspects.
For this reason, it is evident that the Islamic money market can also compete
with the conventional money market.

It is advisable for the government to consider offering more Islamic money

market instruments to the community which will increase the participation of the
people in the Islamic money market.

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4.0 References

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cambridge university press.
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and their pricing.
4. Hanudin Amin, Faisol Ibrahim and Zulkifli. (2013). Islamic Financial
Institutions and Markets. Islamic money market, 82-86.
5. Bacha, Obiyathulla Ismath (2008). The Islamic Interbank Money Market and
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6. Qureshi, F. A. (n.d.). Mid-Term (International Islamic Banking). International
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