17 April 2011
The parent company of ABC Islamic Bank, Arab Banking Corporation tapped the Fed's discount window extensively during the credit crisis, according to documents released by the US Federal Reserve Bank.
Peak borrowing at the end of March 2009 amounted to $2.9bn - over 10% of the total assets of the bank at the time. Technically ABC Islamic would be prohibited from using these funds, but if the parent was hurting, the subsidiary must have been hurting even more, which leads to the question: How did ABC Islamic deal with its liquidity needs in the crisis?
The parent company of ABC Islamic Bank, Arab Banking Corporation tapped the Fed's discount window extensively during the credit crisis, according to documents released by the US Federal Reserve Bank.
Peak borrowing at the end of March 2009 amounted to $2.9bn - over 10% of the total assets of the bank at the time. Technically ABC Islamic would be prohibited from using these funds, but if the parent was hurting, the subsidiary must have been hurting even more, which leads to the question: How did ABC Islamic deal with its liquidity needs in the crisis?
© The Islamic Globe 2011
