Five Islami banks borrow Tk 40b

Bangladesh Bank has lent Tk 40 billion (4,000 crore) to five Islami banks after taking a special initiative as the banks have been suffering from liquidity crisis suddenly.

The central bank lent the money to the banks on Tuesday after issuing a circular in this regard on Monday.

The five banks are -- Islami Bank Bangladesh Limited, Union Bank, Social Islami Bank, First Security Islami Bank and Global Islami Bank. The Islami Bank Bangladesh Limited got the largest amount of the money.

All the five banks are being run by one business conglomerate.

Islami Bank Bangladesh Limited is the largest of the 10 Islami banks in the country. The deposit of the bank is decreasing every day due to recent instability.

On Monday the deposit of the bank decreased to Tk 146,964 crore, which was Tk 153,272 crore on 31 October.

Islami Bank Bangladesh Limited was lending money to all the Islami banks in the country for long but now it is going to other banks for the money. That’s why other Islami banks have been facing this liquidity crisis.

Earlier, on Monday, Bangladesh Bank issued a circular to provide the liquidity facility to the Islami banks. The order was implemented from the day.

Using the facility, the Islami banks have started lending money from the central bank depositing Sukuk (Islamic bond or “Sharia-compliant” bond).

Bangladesh Bank sources on Tuesday said it was decided to give the five Islami banks Tk 40 billion under the Islami Bank Liquidity Facility. The money will be deposited Wednesday.

Speaking to Prothom Alo, Bangladesh Bank spokesperson Mesbaul Haque said, it was decided to give Tk 40 billion to the banks on the first (of issuing the circular). The Islami banks can take the money as they need against the Sukuk.