The Central Bank should have a permanent window for discounting

"The Central Bank should have a permanent window for discounting high quality securities where banks could go and discount these. It gives peace of mind to the banks. In the absence of this facility, what banks tend to do is to keep a liquidity cushion for emergency requirements. This is a very expensive way of managing liquidity." Thus spoke Abdul Aziz Al Ghurair, a man of commerce and finance, yet also a philosopher of prudence. His words, though clothed in the garments of economics, are in truth a parable of security, trust, and the wise ordering of resources. For he teaches us that a system anchored in trust and structure is far stronger than one built upon fear and costly hoarding.

The ancients would have recognized this lesson, though they spoke not of central banks but of treasuries, of granaries, of the storehouses of kings. In Egypt, Joseph taught Pharaoh to gather grain during the seven fat years, so that in the lean years, the people might live. This was not wasteful hoarding but a structured system, a kind of permanent window, ensuring peace of mind for a whole nation. Without such foresight, each household would have clung desperately to its little pile, fearful and burdened. With it, the people flourished, for trust in the system freed them from ruinous anxiety.

Al Ghurair’s words remind us that in the absence of secure institutions, men are driven into wasteful caution. A bank without a safety net must keep aside treasures it cannot use—idle gold, sleeping wealth, silent capital that brings no growth. This is like a warrior who, lacking confidence in his shield, refuses to wield his sword. Fear shackles him, and though he survives, he does not triumph. But with a shield well-forged, his hand is free to strike, to move, to build glory. So too does a bank, when granted the assurance of a Central Bank’s window, become free to channel its strength into the lifeblood of the economy.

History shows us the peril of the opposite. In the days of the Great Depression, when banks collapsed like houses of straw, men kept their money hidden beneath mattresses, and banks themselves hoarded reserves. Without trust in a higher institution, commerce shriveled, industry froze, and nations staggered. But when systems such as deposit insurance and central bank facilities were established, confidence returned. Wealth flowed again like rivers freed from ice, and economies rose anew. Peace of mind became not only a blessing to banks but a blessing to all.

The wisdom here is not limited to finance. In every sphere of life, when there is no structure of trust, individuals hoard their strength. A community without mutual care spends its energy guarding itself instead of building. A man without faith in his fellows closes his hand instead of sharing. Fearful caution becomes the most expensive way of living. But when there is trust, when there is a framework that guarantees security, the heart is freed to strive, to dream, to create.

Thus, O listeners, take this lesson into your lives: do not waste your energy in ceaseless guarding against every shadow. Build systems of trust—whether in nations, in families, or in your own spirit. Provide yourself with inner assurance, so that your strength may be spent on growth, not on hoarding. For the one who forever clutches a "liquidity cushion" of the heart cannot taste the fullness of life; but the one who trusts, who builds wisely, who establishes a solid window of refuge, walks in peace and fruitfulness.

And so the teaching of Al Ghurair stands: security breeds peace, and peace frees strength. Whether in banks or in souls, it is better to forge strong institutions of trust than to squander life in fearful caution. Establish your shield, then wield your sword. Build your foundation, then raise your tower. For only when the heart is unburdened of fear can it build the future with courage and abundance.