Islamic liquidity management issues

In order to continue growth, the Islamic finance market needs a strong secondary market enhanced by greater liquidity and price transparency. There is a need for flexible and shari`a compliant liquidity management tools, as well as a shift from primarily sort-term deposits to long-term deposits. Islamic banks also encounter difficulty managing mismatched asset and liability portfolios due to the absence of an inter-bank market. Sukuks also present the problem of lacking in liquidity, and even when traded, are frequently not price stable due to their medium and long term nature.