| CBO has allowed Bank Nizwa to invest up to 75 per cent of its net worth in Islamic instruments outside Oman for the first six months. As the sultanate is a new entrant into Islamic banking it does not have Islamic instruments like sukuk or other short-term liquidity management tools in which Islamic banks can invest their excess liquidity.
When asked about the extent to which Islamic banks and windows are allowed to invest excess liquidity outside Oman, H E Hamood Sangour al Zadjali, executive president of CBO, said, "We are according some flexibility to banks to invest some of their excess liquidity in Islamic instruments outside Oman."..............................................Full Article: Source
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