Commentary on Bank of England Alternative Liquidity Facility
On Wednesday 2 December, the Bank of England published a speech titled ‘why Islamic finance has an important role to play in supporting the recovery from Covid – and how the Bank of England’s new Alternative Liquidity Facility can help’.
Al Rayan Bank welcomes the news and what this could mean for Islamic finance providers, customers and the wider banking industry.
Peter Horton, CEO of Al Rayan Bank comments: "We strongly welcome the Bank of England’s recognition of the importance of Islamic finance and the commitment to go further in supporting the sector. As the UK’s largest and longest established Sharia-compliant retail bank, Al Rayan Bank has been pioneering British Islamic finance since 2004. We’ve worked closely with the Bank of England over those years to ensure a more level-playing field for Islamic finance providers. Yesterday’s announcements are another step forward in that journey.
"In particular, the commitment to introduce a new alternative liquid facility (ALF) from the first quarter of 2021 - something that Al Rayan Bank has long called for - will help to ensure that Islamic banks have the same opportunities as conventional banks in the UK. In addition to helping to ensure that UK banks are better placed to meet the needs of all consumers, regardless of faith, this will also help to position the UK as a leading hub for global Islamic finance."