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dec052022dmd03.pdf - Guidelines and Operating Procedures of...

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Page1of2Guidelines and Operating Procedures of Islamic Banks Liquidity Facility (IBLF)A.ObjectivesTo aid the liquidity management and deepen the financial system, Bangladesh Bank is herebyintroducinga new financial instrument, namely, ‘Islamic Banks LiquidityFacility (IBLF)’forshari’ah based banking system in Bangladesh. This facility will provide short-term liquidity inthe shariah based banks operating in Bangladesh. These guidelines explain operating andsettlement procedures for participating in the IBLF.B.Eligible ParticipantsShariah based banks maintaining current accounts with Bangladesh Bank (BB) are eligible toparticipate in the IBLF.C.Features of the Islamic Banks Liquidity Facility (IBLF)The IBLF is a framework of providing liquidity facility by BB to shariah based banks under theMudarabah contract where Bangladesh Bank acts as the Investor (Rab al Mal) and banks act asthe investment manager (Mudarib) under an agreed Profit Sharing Ratio (PSR). The differentfeatures of IBLF are as follows:1.Tenor:Tenor of the IBLF will be 14 days.2.Profit Rate:03(three) months MTDR (Mudaraba Term Deposit Receipt) rate ofrespective bank.

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Term
Winter
Professor
wei
Tags
Bangladesh Bank, IBLF

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