Islamic Interbank Money Market In Bangladesh

Volatility in these two markets was tamed through repo operation and intervention by the bangladesh bank.

Islamic interbank money market in bangladesh. Islamic capital market money market instruments in bangladesh. Other bnm market non market operations 500 70 627 80. The islamic inter bank money market iimm was introduced on january 3 1994 as a short term intermediary to provide a ready source of short term investment outlets based on syariah principle. Other major issues come from the absence of an interbank islamic money market following the same policy and guidelines for islamic and conventional banking by the bangladesh bank presence of a discriminatory legal reserve requirement for islamic and conventional banking prevalence of a restrictive environment in the capital market and the lack of legal support and protection of bangladesh.

Fariduddin ahmed advisor export import bank of bangladesh limited former managing director. Interbank call market and forex market. Through the iimm the islamic banks and banks participating in the islamic banking scheme ibs would be able to match the funding requirements effectively and efficiently. The country s islamic interbank fund market iifm created by the central bank bangladesh bank will see the introduction of new products to diversify from mudarabah based products once the marke.

Pdf on may 1 2013 saleh md. This problem was addressed in 2011 when the central bank launched an islamic interbank money market but the dominant share of ibbl limits the market s efficiency the report said. Bangladesh has launched an islamic interbank money market aiming to help sharia compliant banks manage their short term funding. Money market 6 2 money market the important segment of financial market that basically channelizes the short term fund in the country was quite active and vibrant with the participation of both banks.

The availability of various islamic interbank money market instruments allows islamic banks to cover their exposure in case of deficit and make placement on short term basis in case of surplus. Arman published islamic interbank money market in bangladesh.