Implications of the Central Bank's Control on Deposits and Credit in Islamic Banks

Abstract

The central bank is the manager of monetary policy .Thus it is plays the role of controller in the banking system. Central bank will control Islamic banks by the same instruments which it used in the control on the Traditional banks, because the central bank didn't distinguish between Islamic banks and Traditional banks. So, this process will have effects on the control and economic aims. If central banks understand the Islamic bank operations they will be able to use suitable instruments for the control on Islamic banks. So, they will reach to all aims, like control on money and product supply, increasing the real national income.

Keywords

• The Central Bank
• Economic Role
• Control
• Islamic Banks
• Objectives
• Concerns
• Financial
• Information
• Development
• Regulatory and Effects