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Islamic banks return Tk 5.9 billion to BB

Islamic banks have repaid Tk 5.9 billion on Thursday to Bangladesh Bank after the central bank injected Tk 52.47 billion to the Shariah-based entities in three days under liquidity facility.

In the first two days, five lenders – Islami Bank, Union Bank, Social Islami Bank, First Security Islami Bank and Global Islami Bank – borrowed Tk 52.47 billion under liquidity support for short-term of 14 days to the Shariah-compliant lenders.

The amount disbursed in two phase – Tk 39.95 billion on Tuesday and Tk 12.52 billion on Wednesday, according to the Bangladesh Bank.

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

Before the introduction of the Islamic Banks Liquidity Facility on Monday, they also borrowed from each other.

Some 10 out of 61 banks in the country are operating according to Shariah – a body of religious law that forms a part of the Islamic tradition.

The banks are Islami Bank Bangladesh, ICB Islamic Bank, Al-Arafah Islami Bank, Social Islami Bank, Exim Bank, First Security Islami Bank, Shahjalal Islami Bank, Union Bank, Standard Bank and NRB Global Bank.