Business & Economy
0 1 min read

Surplus liquidity in Islamic banks drop by 77pc

block

Business Report :

Excess liquidity in Islamic banks dropped by Tk5,125 crore to Tk1,518 crore at the end of March 2024 compared with that of Tk6,643 crore in December 2023

Excess liquidity in the country’s Shariah banks nosedived by 77 per cent in March 2024 compared with that in December 2023, driven by a trust deficit.

According to Bangladesh Bank data, excess liquidity in Islamic banks dropped by Tk5,125 crore to Tk1,518 crore at the end of March 2024 compared with that of Tk6,643 crore in December 2023 and Tk7,767 crore at the end of September 2023.

This is according to data by Bangladesh Bank’s Quarterly Report on Islamic Banking in Bangladesh.

Excess liquidity refers to the amount of liquid assets that banks hold above and beyond what is required for their day-to-day operations and regulatory obligations.

block

Negative excess liquidity poses challenges for banks, making it difficult to meet immediate payment obligations, address customer withdrawals and settle transactions promptly, bankers said.

In Bangladesh, there are 10 full-fledged Islamic banks.

Only two banks – Shahjalal Islami Bank and Al-Arafah Islami Bank – managed to increase their excess liquidity substantially, while others saw a severe erosion of their liquidity in the reporting period.

The excess liquidity of five Shariah-based banks, which are allegedly controlled by the Chattogram-based S Alam Group, remained negative in March 2024.

The five banks are Islami Bank Bangladesh, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank.

block
Related

Finance minister dissatisfies with curtail inflation

Business Report : It is undeniable that contractionary policies to control inflation can in the long run slow down economic growth, Finance Minister Abul Hassan Mahmood Ali said on Saturday. “While there is a need to adopt contractionary policies to control inflation, it is undeniable that in the long run this approach can slow down growth,” he said, while addressing the parliament in his winding up speech on the proposed budget for the 2024-25 fiscal. He, however, said to build...

Bank Asia organises AML & CFT Conference 2024

Business Report : Bank Asia PLC has organised the annual ‘AML & CFT conference 2024’ with the theme of “AML-CFT: Fostering & Enduring a Culture of Compliance to enhance AML & CFT knowledge & awareness among all the employees of the bank. Mr Md Masud Biswas, Head of Bangladesh Financial Intelligence Unit (BFIU) was present as the Chief Guest of the conference, according to a press statement. In his speech, he mentioned the emerging challenges of money-laundering, importance of awareness...

Proposal to legalise black money is illogical: GM Quader

Business Report : Creating scope for “thieves” to legalise black money with a minimum tax on it, as proposed in the FY25, is illogical, Jatiya Party Chairman GM Quader said saturday. “An ordinary taxpayer is required to pay 30% in taxes, while a person with black money only needs to pay 15% to legalise it. This proposal is absurd and illogical, as it essentially allows thieves to legitimise their stolen money by paying a minimal tax,” the MP made the...