5 Islamic banks borrowed money on the first day

The country's Islamic banks have suddenly faced a liquidity crisis. For that Bangladesh Bank has taken special initiative to lend money to these banks. After issuing the circular last Monday, Bangladesh Bank has lent four thousand crore taka to five banks on Tuesday.

The five banks are Islami Bank Bangladesh Limited, Union Bank, Social Islami Bank, First Security Islami Bank and Global Islami Bank. Islami Bank Bangladesh Limited received the most money, five banks belong to the same group.

Among the 10 Islamic banks in Bangladesh, the largest bank is Islami Bank Bangladesh Limited. The bank's deposits are decreasing daily due to the recent turmoil.

On Monday, the bank's deposits fell to 1 lakh 46 thousand 964 crores. Last October 31, the deposit of the bank was 1 lakh 53 thousand 272 crores.

Islami Bank Bangladesh Limited had been lending money to all Islamic banks for so long. But Islami Bank is now going to other banks for money. As a result, other Islamic banks have suddenly faced a liquidity crisis.

Meanwhile, Bangladesh Bank on Monday issued a circular to provide liquidity facilities to Islamic banks. It is effective from that day. Under this facility, Islamic banks have started borrowing money from the central bank by depositing Sukuk (Shariah-based investment bonds). 

According to Bangladesh Bank sources, yesterday it was decided to give 4000 crore taka to five Islamic banks through the Islamic Banks Liquidity Facility. This money will be added to the bank account on Wednesday.

When asked, Bangladesh Bank spokesperson Mejbaul Haque told Prothom Alo that it was decided to pay Tk 4,000 crore on the first day against Sukuk. Islamic banks can take money as needed against Sukuk.

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