---
title: "What is Sell and buy back (SBBA)? | IslamicOpenFinance™"
description: "An interbank arrangement of an outright sale of securities, promises to reverse it and a later outright sale back at a set price."
url: https://islamicopenfinance.com/glossary/sell-and-buy-back/
lang: en-GB
source: "IslamicOpenFinance"
---

[Glossary](https://islamicopenfinance.com/glossary/) / [Treasury, liquidity and hedging](https://islamicopenfinance.com/glossary/#treasury)

Treasury, liquidity and hedging

# Sell and buy back (SBBA)

An interbank arrangement of an outright sale of securities, promises to reverse it and a later outright sale back at a set price.

A sell and buy back agreement is an arrangement used in Islamic interbank money markets in which one party sells securities outright, the parties exchange promises, and on a future date the securities are sold back at the original price plus an agreed profit. Bank Negara Malaysia's policy document on Islamic collateralised funding defines it as separate transactions in that sequence and sets out how banks may use it for liquidity management. The Bank's Shariah Advisory Council has resolved that a sale and buy back on different dates is permissible and is not bay al-inah, a point on which other standard setters' positions should be checked.

## Sources

- [Bank Negara Malaysia, Islamic Collateralised Funding policy document, 2024: definitions of sell and buy back (SBBA)](https://www.bnm.gov.my/documents/20124/938039/pd_Islamic_Collateralised_Funding.pdf)

This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.

## Related terms

[**Commodity murabaha** Interbank and treasury deals in which commodities are bought and sold on deferred payment to place or raise short-term funds.](https://islamicopenfinance.com/glossary/commodity-murabaha/) [**Collateralised murabahah** A murabaha placement secured by collateral such as sukuk, used as an Islamic alternative to a repo.](https://islamicopenfinance.com/glossary/collateralised-murabahah/) [**Wa'd (promise)** A unilateral promise to do something in the future; it can be made binding and is used in hedging, sukuk and lease-to-own deals.](https://islamicopenfinance.com/glossary/wad/) [**Bay al-inah (sale and buy-back)** Selling an asset on deferred terms and buying it back from the same buyer for a lower spot price. Standard setters disagree on it.](https://islamicopenfinance.com/glossary/bay-al-inah/) [**Muqassah (set-off)** Extinguishing a debt owed to a party by a debt that party owes, either by operation of law or by agreement.](https://islamicopenfinance.com/glossary/muqassah/)

**Treasury, liquidity and hedging**

1. [Commodity murabaha](https://islamicopenfinance.com/glossary/commodity-murabaha/)
2. [Wa'd (promise)](https://islamicopenfinance.com/glossary/wad/)
3. [Muwaadah (mutual promise)](https://islamicopenfinance.com/glossary/muwaadah/)
4. [Tahawwut (hedging)](https://islamicopenfinance.com/glossary/tahawwut/)
5. [Islamic profit rate swap](https://islamicopenfinance.com/glossary/profit-rate-swap/)
6. [Islamic FX forward](https://islamicopenfinance.com/glossary/islamic-fx-forward/)
7. [Islamic cross-currency swap](https://islamicopenfinance.com/glossary/islamic-cross-currency-swap/)
8. [Interbank investment wakalah](https://islamicopenfinance.com/glossary/interbank-investment-wakalah/)

[All 221 terms](https://islamicopenfinance.com/glossary/)