There is also the complication that the outstanding stock of Sukuk is not sufficiently large to enable all Islamic financial institutions to meet a liquidity ratio comparable to that mandated under Basel III.
Finally, the markets for Sukuk are not always as liquid as those for conventional government bonds and therefore even if an Islamic financial institution invests in them it might not always be able to find a ready buyer when the need occurs. These are genuine practical difficulties in applying Basel III to Islamic financial institutions.