CDCs (Central Deposit Certificates)

Definition of " CDCs (Central Deposit Certificates)"

A proposed instrument of Islamic banking. The certificate is offered by the central bank to the general public and it denominates deposits with the central bank. The central bank will invest these with all member banks, which makes it the most diversified investment in the economy. Since it involves two layers of financial intermediation, namely, member banks and the central bank, it would be the safest instrument available.