Bangladesh’s fully Shariah-compliant banks disbursed loans amounting to 9.5 times the deposits received in a single month, triggering liquidity issues, as per a Bangladesh Bank report. The ten Islamic banks, including Islami Bank Bangladesh and Social Islami Bank Limited, saw a deposit increase of Tk 449 crore in March, while loans surged by Tk 4,302 crore.
Deposits grew from Tk 3,80,066 crore in February to Tk 3,80,515 crore in March, whereas loans rose from Tk 4,55,525 crore to Tk 4,59,827 crore. This disparity is attributed to distressed banks leveraging capital, safety deposits, and borrowing from Bangladesh Bank.
Concurrently, deposits in Islamic branches and windows of conventional banks fell by Tk 449 crore, with loan disbursements decreasing by Tk 84 crore. Despite these challenges, Islamic banking holds 23.44% of total sector deposits and 24.86% of loans, with branches increasing to 1,674 in March.
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