Regulatory Alerts2023-02-05
Added
Guidelines for Shari’ah Compliant Mudarabah Liquidity Support (MLS)
Bangladesh Bank introduces the Mudarabah Liquidity Support (MLS) framework, allowing Shari’ah based banks to obtain interim liquidity under a Mudarabah contract where the central bank acts as Investor and the bank as Investment Manager. Eligible collateral consists of claims against government remittance incentives or financial stimulus facilities, subject to a 10% haircut, with minimum application amounts of Taka 10 crores and tenors of 7, 14, or 28 days. The guidelines specify operating procedures, required documentation, settlement mechanics including early repayment options, and the transfer of collateral title to Bangladesh Bank if a bank fails to maintain adequate funds for settlement at maturity.
Topics
islamic-finance
capital
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