Islami Bank, facing financial strain, violated Bangladesh Bank’s Shariah-based banking guidelines by borrowing Tk 1,000 crore from state-run Sonali Bank with interest, a practice prohibited for Shariah-compliant institutions. The 14-day loan offered 10.5% interest, contrary to Shariah principles. While the liquidity support was granted in the interest of the country’s banking system due to Islami Bank’s temporary liquidity crisis, it raises concerns about adherence to Shariah norms. Of the borrowed amount, Tk 621 crore exceeded Sonali Bank’s internal limits, prompting notification to the central bank. Islami Bank has yet to fully repay, maintaining a Tk 3,647 crore deficit in its current account with the central bank as of January 11.
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