1. Absence of Interbank Loan Market and Banking Short-Term Liquidity Management Mechanisms MAGOMET YANDIEV, Lomonosov Moscow State University

2. The Problem In practice, an Islamic Bank (IB):  have excess liquidity, or  enter the traditional relations with the Central Bank (CB) There is no answer to the question:  How should communicate CB and IB?

3. The Specificity of Relationship Between CB and IB CB is a risk-free organization If the Central Bank takes a deposit from the IB, the IB does not bear any risk. Consequently, it has reason to be rewarded If the Central Bank gives funds to the IB, CB assumes the commercial risk. But CB is a risk- free body and it is not entitled to assume the commercial risk, ie is not entitled to fund IB

4. Interim Findings  Central Bank is not entitled to enter directly into the financial relationship with IB  Consequently, between CB and IB should be an intermediary (an agent of the Central Bank to manage liquidity of Islamic Banks)  And we need a special financial asset, individually designed for this agent

5. Proposal CB establishes SPV Ministry of Finance issues long-term sukuk with a coupon payable on a daily basis IB and SPV buy these sukuk CB decree the minimum share of sukuk in the asset structure of IB

6. Enhancing IB liquidity Repo operation stage SPV Asset movement Islamic bank Stage one 1.1.+ 100 sukuk< ==- 100 sukuk 1.2.- 100 rubles== >+ 100 rubles Stage two Day 1+ sukuk’s payment100 rubles invested Day 2+ sukuk’s payment100 rubles invested ……… Day n+ sukuk’s payment100 rubles invested Stage three 3.1.- 100 sukuk== >+ 100 sukuk 3.2.+ 100 rubles< ==- 100 rubles

7. Shariah Compliance of Repo Contracts Parties enter into repo transactions already having assets for the reverse transaction The cost of the first Sukuk deal is equal to the cost of the reverse Sukuk deal

8. Competition For Funding Criteria: Conventional finance - interest rate Islamic finance - the number of sukuk in the reverse transaction

9. Future System for support national currencies

10. شكر Thank you for the attention Спасибо за внимание mag2097@mail.ru http://ssrn.com/author=1278584