2022-12-05

Added 2026-08-07

Guidelines and Operating Procedures of Islamic Banks Liquidity Facility (IBLF)

Bangladesh Bank introduces the Islamic Banks Liquidity Facility (IBLF) to provide short-term liquidity to shari’ah based banks maintaining current accounts with the central bank. The facility operates under a Mudarabah contract with a 14-day tenor, using unencumbered Bangladesh Govt. Investment Sukuk (BGIS) as collateral subject to a 5% haircut. Eligible institutions must apply via a prescribed form for a minimum amount of Taka 1 crore, with profits calculated based on the bank's three-month Mudaraba Term Deposit Receipt rate. Settlement occurs at maturity through debiting the institution's current account, with provisions for lien marking on collateral and disposal of securities in case of breach.

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