Publication Date: 2022/09/15
Abstract: The entire banking industry either conventional or Islamic banks is crucial requirement to maintain liquidity position by effectively and cautiously. This article tries to explain the necessity of proper Islamic securities for liquidity management in Islamic banking industry of Bangladesh. Also this paper attempt to explore the newly formed sukuk bond structure and its further developing aspect in Bangladesh. In analysis, this paper finds issuing the Shariah-compliant sukuk seems beneficial for liquidity management in Islamic banking industry. Moreover, this Islamic bond helped to Islamic banks to maintaining required Statutory liquidity ratio (SLR) with the central bank as well as supporting implementation of developing and infrastructure government projects. The study suggested some possible recommendation includes shariah-based regulatory and implementing authorities; secondary vibrant Islamic bond market; fiscal initiatives like tax exemption, waiver on source-tax on sukuk; mudarabah for BGIIB like bond and musharakah principle underlying contracts for government public private partnership (PPP) projects would be pondered for the greater economic activities and GDP growth.
Keywords: Islamic Bank, Liquidity Management, Sukuk, Shariah, Ijarah, Mudarabah, Musharakah, SLR.
DOI: https://doi.org/10.5281/zenodo.7082042
PDF: https://ijirst.demo4.arinfotech.co/assets/upload/files/IJISRT22AUG904_(1).pdf
REFERENCES