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Islamic banks' excess liquidity shrivels

Shariah-based banks saw a sharp fall in excess liquidity in the third quarter of last year because of aggressive investment to the point of violating the ceiling set by the central bank.

Between the months of July and September the excess liquidity of the Islamic banking industry shrank 19.54 percent to Tk 5,202 crore from the previous three months, according to data from the Bangladesh Bank.

The loan-deposit ratio surged to 97 percent during the quarter, which is way above the authorised limit of 90 percent.

Of the eight full-fledged Islamic banks five had lent breaching the ceiling.

The eight banks are Islami Bank Bangladesh, Exim, First Security, Al-Arafah, …
Banking Industry News

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