Wednesday, 1 February, 2023
E-paper

BB’s Liquidity Support

Islamic banks repay Tk 5.9bn

  • Staff Correspondent
  • 10 December, 2022 12:00 AM
  • Print news

Islamic banks have repaid Tk 5.9 billion to Bangladesh Bank after the central bank injected Tk 52.47 billion into the Shariah-based banking entities under the liquidity facility.

They gave back the amount to the Bangladesh Bank on Thursday, said sources at the central bank.

Five lenders -- Islami Bank Bangladesh Ltd (IBBL), Union Bank Ltd, Social Islami Bank Ltd (SIBL), First Security Islami Bank Ltd (FSIBL) and Global Islami Bank Ltd -- borrowed Tk 52.47 billion under liquidity support for short-term of 14 days after Bangladesh Bank introduced Islamic Bank Liquidity Facility on December 6.

The amount was disbursed in two phases -- Tk 39.95 billion on Tuesday and Tk 12.52 billion on Wednesday.

Shariah-based banks used to largely depend on IBBL for short-term loans, but the recent liquidity crisis in the largest Islamic bank has put them in trouble, according to bankers.

 Before the introduction of the Islamic Bank Liquidity Facility, they also borrowed from each other.

Some 10 out of 61 banks in the country are operating based on Shariah.

The banks are IBBL, ICB Islamic Bank, Al-Arafah Islami Bank, SIBL, Exim Bank, FSIBL, Shahjalal Islami Bank, Union Bank, Standard Bank and NRB Global Bank.