Banks can avail BB’s Islamic liquidity support

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Business Report :
Conventional banks’ Islamic banking branches and windows from now will be able to avail short-term loans under an “Islamic Bank Liquidity Facility” (IBLF) of Bangladesh Bank, something previously offered to Shariah-based banks only.

The central bank recently revised guidelines and operating procedures, saying that conventional banks maintaining current or Al-Wadiah accounts with Bangladesh Bank are eligible for the IBLF.

Previously only Shariah-based banks were allowed to avail the IBLF against Bangladesh Government Investment Sukuk (BGIS) bonds as securities.

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The revised guidelines said the tenures of the liquidity facility would be 7 days, 14 days and 28 days whereas previously it was only 14 days.

The profit rate will be the one-month Mudaraba Term Deposit Receipt (MTDR) rate of the respective bank.

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