From Arabnews.com: The International Islamic Rating Agency (IIRA), headquartered in Bahrain and set up two years ago by the Islamic Development Bank (IDB), has warned in its latest research report titled “Liquidity Assessment of Islamic Banks” that “Islamic banks face challenges from declining liquidity in the markets”.

This is partly reflected by the fact that many Islamic banks became net borrowers from the interbank market during 2008 from net providers of funds in 2007 indicating increased liquidity needs. ……..Full Article: Source