IslamicFinance.de

The Islamic banks wanted for long some sort of bonds from the Bangladesh Bank (BB) to invest in to the fulfilment of the statutory liquidity ratio (SLR), as required by the regulator. But only in 2014, did the BB come out with an offer of interest-free bonds to the Islamic banks, which now control one-fourth of the deposit market. If the Islamic branches of the interest-based commercial banks are included, then the deposit share will go up. Though the Islamic banks were permitted in the middle of the 1980s, the regulatory framework to oversee this activity and the conditions they were to fulfil with respect to compliance with the regulations were not there.