State of the Bangladesh Economy in FY2023-24 (First Reading)
•
·
Independent Review of
RBD
Bangladesh's Development
This fall in excess liquidity has been mainly driven
by the liquidity crisis in five of ten Islamic Shariah-
based PCBs, plagued by poor governance since the
ownership change of the banks.
Analysis of the data shows that the average excess
liquidity as a share of total liquid assets in IBS
from January 2011 to December 2016 was 39% but
fell to 26% between March 2017 and October 2023
after Islami Bank's ownership change in January
2017.
• Before the ownership change of Islami Bank, IBS
had excess liquidity of BDT 10112.63 crore in
December 2016.
•
However, after the ownership change of Islami
Bank, IBS suffered a liquidity shortfall of BDT
2218.23 crore in January 2023
The downfall of Islamic
Shariah-based private banks
Figure: Average excess liquidity as a share of total liquid assets in
Per cent
45
40
35
30
25
20
15
10
5
39
IBS
26
CPD (2023): State of the Bangladesh Economy in FY2023-24 (First Reading)
Before ownership change of
Islami Bank
After ownership change of Islami
Bank
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