Shari’ah-compliant liquidity facilities
As part of our strategy to broaden access to our facilities, we have decided to establish a Shari’ah-compliant deposit facility to enable Islamic banks to use our liquidity facilities. The technical detail on how we intend to implement this is set out in a series of consultation papers on Shari’ah-compliant liquidity facilities.
We also carried out a consultation in 2016:
On 28 September 2018, Dave Ramsden, Deputy Governor, Markets and Banking, announced that the Bank will shortly be establishing a new subsidiary of the Bank, to house the Shari’ah Compliant Facility; this will be a special purpose vehicle, called the Bank of England Alternative Liquidity Facility (BEALF). This will also be the first non-interest based liquidity facility to be offered by a major Western central bank, providing important structural support to the UK’s Islamic finance sector.