BB asks 5 Islamic banks to adjust current account balance

The Bangladesh Bank has asked five Islamic banks in writing to adjust their current account balance, setting up a period of 20 days for adjusting their respective negative balance. Non-compliance with the directive may block these banks off from settling transactions.

The five banks are Islami Bank, First Security Islami Bank, Social Islami Bank, Global Islami, Bank, and Union Bank. Banks maintain a current account with the central bank for different clearing payment systems, and they have to maintain a hefty balance in the account. 

Addressing a press brief on Sunday, Executive Director and spokesperson of the central bank Mezbaul Haque said, “It is a warning for these banks. The final decision has not yet been made. The Bangladesh Bank is currently emphasising on mitigating inflation.”

“These five Islamic banks have been facing a liquidity crisis for a year, and have structural problems. Some media outlets had reported that the decision to block transactions of some banks had already been taken. But the letters are a warning.”