Bangladesh Bank Governor Dr Atiur Rahman, speaks at launching of the Islami Interbank Fund Market (IIFM) at BB’s Jahangir Alam Conference Hall in Dhaka Sunday.

Bangladesh Bank (BB) Governor Dr Atiur Rahman viewed the conventional banking as based on ‘fragile structure’ and hence, the world now rethinks of the Islamic banking in many cases.

“Even many non-Muslim countries are making the use of Islamic banking products such as ‘SUKUK’ in collecting fund from the market,” he said.

Dr Atiur Rahman came up with this view while inaugurating the transactions at Islamic Inter-banks Fund Market (IIFM) at Bangladesh Bank in Dhaka.

He said Islamic banking has seen rapid expansion in Bangladesh.

“Islamic banking system in Bangladesh currently covers 18.42 percent of total deposit and 21 percent of total asset in terms of loans and advances.”

The Islamic banks of the country have around 37.81 percent of total net inter-bank deposit, he said, adding that they also collected Tk 30 billion investment money from Islamic Bond Fund.

As the trades and businesses of Islamic banking have got expanded, BB governor emphasised the need to create inter-banking facilities for a stronger liquidity management in the Islamic banks.

BB Deputy Governor Abu Hena Md Razee Hasan presided over the function while Deputy Governor SK Sur Chowdhury and Managing Directors and CEOs of different Islamic banks, among others, were also present.

SK Sur Chowdhury said the IIFM has been launched with the objective of removing mismanagement in the liquidity system of Islamic banks.

Some of the Islamic banks and Islami wings of the conventional banks will deposit their fund in the market and others who need money will take funds from the market to meet their liquidity constraints while the central bank will play the role of custodian of the fund, he added.

Islamic bank Managing Director Mohammad Abdul Mannan said: “Today will be a red letter day in the country’s banking history as the IIFM is a long-cherished and demanded by the Islamic banks.”

He, however, demanded a separate Islamic Banking Act for the Islamic banks so that they can follow a uniform system.

The Daily Sun/Bangladesh/ 4th June 2012