Bangladesh Bank has issued a warning to five Shariah-based Islamic banks in crisis to meet the liquidity deficit within 20 working days. In a press conference at the central bank’s head office in Motijheel in the capital on Sunday, it was informed that despite the temporary crisis, the position of Islamic banks is better than conventional banks.
Analyzing the data of Bangladesh Bank, it can be seen that Islami Bank Bangladesh, Social Islami Bank, First Security Islami Bank, Union Bank and Global Islami Bank faced liquidity shortage at the end of last September.
Islamic banks are required to deposit a minimum of four per cent of cash on hand as CRR and five and a half per cent of deposits as SLR with the central bank every working day. If the target is not met, Bangladesh Bank imposes a fine of 9.8% of the day’s deficit.
When asked how deep the liquidity crisis is, the spokesperson of Bangladesh Bank said that 10 Islami banks bring in 52 percent expatriate income. So their role in economy is important.
Central Bank Spokesperson Majbaul Haque said, ‘When such a situation occurs in any bank, it is our responsibility and duty to inform the banks and that is being done. That letter.. as we say otherwise disciplinary action will be taken against you, a cautionary statement has been given.’
The country’s reserves are now 20.41 billion dollars according to the IMF’s accounting system due to the addition of the 690 million dollars of the second tranche of the IMF and the 400 million dollars of the ADB loan.
Majbaul Haque said, ‘690 million of IMF and 400 million of ADB have been deposited in the account of our central bank. 90 million will come from a Korean fund we are supposed to receive and 130 million will be added from various sources.’
The central bank says that reducing inflation is the number one challenge of the country’s economy. The highest importance is now to pull the rush.