A bank will not be able to do Islamic banking business along with conventional banking at the same time, according to the draft ‘Islami Bank Company Act-2024’, as the central bank looks to level the playing field for Shariah-based banks.
BB's liquidity support to cash-strapped Islamic banks are as per the governor's power, says BB chief Abdur Rouf Talukder
Five Shariah-based banks are still experiencing liquidity crisis despite significant support from the central bank
Liquidity in Shariah-based banks in Bangladesh remains tight due to a dip in deposit collection and the banks’ inability to make the most of the central bank support to overcome the situation, Moody’s Investors Service said in a report.
The Islamic banking sector in Bangladesh continues to face liquidity challenges because of weak governance and regulatory quality, Fitch Ratings said.
Shariah-based banks’ net profit margin declined to 2.2 percent in 2018 from 3 percent a year earlier at a time when the banking sector’s rose, found a recent study. The banking sector’s net profit margin improved to 3 percent from 2 percent last year, according to the study titled “Islamic Banking Operation of Banks-2018”.
