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Home > QFINANCE Dictionary > Definition of narrow bank

Definition of

narrow bank

Banking

bank with safely invested deposits a proposed type of bank that has all its deposits invested in safe assets, and which does not involve itself in investment banking

Recommended Further Reading (Term count)
  • The Case for Separation of Islamic Banks’ Transaction and Investment Functions
    by Volker Nienhaus
    This article was first published in Quantum magazine.During the recent global economic crisis, some argued that the financial industry would have been significantly more stable and resilient if all its institutions had followed the principles and laws governing Islamic banking.A case can certainly be made that there are strong prudential advantages in a system which prohibits riba (interest), gharar (uncertainty), and maysir (gambling), as well...
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Definitions of ’narrow bank’ and meaning of ’narrow bank’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’narrow bank’ and other financial terms with our online QFINANCE Financial Dictionary.

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