Issuing Sukuk and the Excessive Liquidity in the Islamic Financial Institutions in Jordan

Abstract

This paper aims to identify Islamic Sukuk, their issuance basis, the latest developments of this instrument in the global market, and to identify Sukuk’s ability to resolve liquidity problems. In addition to some difficulties that confront the Islamic financial system. Also, this paper shows how Sukuk role in supporting the Islamic banking industry and solving some financial crises by analyzing some indicators.

Keywords: Islamic banks, Sukuk, excessive liquidity, and banking system in Jordan.