Maintenance of CRR/SLR by Islamic Bank

Maintenance of CRR/SLR  by Islamic Bank

All Islamic Banking Companies shall maintain Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) as per rates prescribed by Bangladesh Bank from time to time. Every commercial Bank having Islamic bank branches shall maintain SLR/CRR for its Islamic branches at the same rate as prescribed for the Islamic banks and shall, for the  purpose, maintain a separate Current Account for the Islamic branches with Bangladesh  Bank.

Addressing of liquidity crisis and utilization of surplus fund of the Islamic Banks:

In case of liquidity surplus and crisis the banks can take recourse to the following:

1. The excess liquidity of the Islamic banks/ Islamic branches of conventional Scheduled

banks may be invested in the ‘Bangladesh Government Islamic Investment Bond’ (Islamic  Bond  introduced  by  the  Government).  In  the  same  way,  Islamic banks/branches facing liquidity crisis can tide over the crisis by availing of investment from Islamic Bond fund as per the prescribed rules.

2. In case Islamic banks/branches have surplus/ enough investment in the Islamic

Investment Bond  and subsequently faces liquidity crisis then the bank / branch may overcome the crisis by  availing  of investment facilities from Islamic Bond Fund against lien of their over purchased Islamic Bonds. To meet the crisis, REPO system may also be introduced for the Islamic Bonds.

3. The Islamic banks/branches having no surplus investment in 'Bangladesh Govt.

Islamic Investment Bond’ at the time of their liquidity crisis, if arises, may availed funds from Bangladesh Bank at a provisional rate on profit on its respective Mudaraba Short Notice Deposit Accounts which will be adjusted after finalization of Accounts and rate of profit of the concerned Islamic banks/branches. But till funds generated from sell of Islamic Investment Bonds remain available for investment such financial support may not be available from Bangladesh Bank.

4.The Islamic banks/branches may open/ maintain Mudaraba SND accounts with each

other and can meet liquidity crisis by receiving deposits in the Mudaraba SND account at MSND rate from those having surplus liquidity.

5. To meet the liquidity crisis, if any, of the Islamic branches of the conventional

commercial bank fund may be collected from sources which follow Islamic Shariah.