Govt plans shariah-based securities

FE Report

The government has a plan to introduce shariah-based securities to facilitate fund management of the Islamic banks.

"We're contemplating introduction of shariah-based securities," Finance Minister AMA Muhith said in his budget speech on Thursday.

No shariah-based securities have so far been introduced in the banking sector, although the share of Islamic banking is around 20 per cent.

"The securities will help all the Islamic banks manage their funds smoothly," said a senior official of the Bangladesh Bank.

The government may use the Islamic banks' excess funds to implement different development projects using such securities, he told the FE.

Currently, eight out of 40 private commercial banks are operating under Islamic shariah.

The banks have their own shariah councils to dictate terms of banking under Islamic rules and regulations.

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