5 Islamic banks’ fund deficit: Here’s what Bangladesh Bank says

The Bangladesh Bank has asked five cash-strapped Shariah-based lenders to adjust the deficit in their current account balance by December 26.

On November 28, the central bank sent letters to the managing directors of Islami Bank Bangladesh, Social Islami Bank, First Security Islami Bank, Union Bank and Global Islami Bank, instructing them to clear the deficit within 20 working days.

If they can't do so by the deadline, they might be blocked out of all clearing platforms. But some media outlets reported that the decision to block some banks' transactions has already been taken.

"We have warned them. No decision to this effect has been taken yet," BB Executive Director and Spokesperson Md Mezbaul Haque told a media briefing at the central bank headquarters today.

Banks have to maintain a current account with the central bank for different clearing payment systems and they have to maintain a hefty balance in the account.

But the current accounts of the five banks have been in the deficit for the past year, according to the letter seen by The Daily Star.

"A review of your current account balance shows that it has been in the deficit for a long time and that is not consistent with normal banking activities. Although you have been repeatedly warned about the matter, no significant action has been taken by you until now," it said.