Interest Free Instruments for Managing Liquidity
Interest free banking and financing is gaining momentum world-wide. Many of the international RIBA (conventional) banks are now focusing on LARIBA banking ( Interest free banking) and financing to gain a significant market share of the funds and the deals which insist on LARIBA (Interest free) dealings. Many estimate the LARIBA (Interest free) funds looking for halal investing and banking to be from $ 50 billion to $80 billion. Most of these funds are now handled in Europe; mainly in the London financial markets. In 1996, Citibank has started "Citibank Islamic" in Bahrain and is now providing limited Islamic financing windows out of its international operations in Europe..
Interest free banks world-wide have not yet come up with the competitive financial instruments and products which allow them to provide valid avenues to the LARIBA(Interest free) owner of funds and which compete in quality and security with instruments offered by other RIBA banks (conventional banks) and investment companies in the world.