Dhaka, Bangladesh (BBN) – The central bank of Bangladesh has initiated a move to amend the existing Islamic Investment Bond Rules-2004 in order to make this particular type of security lucrative for investors, officials said.
The latest move of Bangladesh Bank (BB) aims to develop an Islamic Financial Market in Bangladesh, aiming to ensure proper management of liquidity affairs of the Shariah-based Islamic banks.
“We want to create a new avenue for trading of the Islamic Bond in the near future through amending its rules,” a BB senior official said, adding that the Islamic Bond will be converted into an auction-able instrument among the Islamic banks to help them manage their liquidity efficiently.
As part of the move, the BB has asked seven Islamic banks and two non-banking financial institutions (NBFIs) to submit their concrete proposals in this connection to the central bank shortly.
The instruction came at a discussion meeting with the chief executive officers and managing directors of the Islamic banks and NBFIs, held at the central bank Monday with its Executive Director SK Sur Chowdhury in the chair.
At the meeting, the Islamic banks and NBFIs sought a month’s time for preparing the proposals. The central bank, however, is yet to finalize the deadline for submission of their opinions.
“The Islamic banks and NBFIs will have to submit the proposals to develop the Islamic Financial Market after approval of their respective board as well as Shariah councils,” another BB official said.
BBN/SSR/AD-03Aug11-11:56 am (BST)
