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Experts Urge Enhanced Shariah-Compliant Liquidity Frameworks for Islamic Banks

Banking experts, policymakers, and academics in Bangladesh have emphasized the need for stronger Shariah-compliant liquidity management instruments to support the sustainable growth of Islamic banking.

By Staff Correspondent
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Experts for stronger liquidity management frameworks for Islamic Banks | Business
BSS

Banking experts, policymakers, and academics have stressed the need for strengthening Shariah-compliant liquidity management instruments and institutional capacity to support the sustainable growth of Islamic banking in Bangladesh. The observations were made at a research workshop titled 'Liquidity Management of Islamic Banks: Bangladesh Context' organized by the Bangladesh Institute of Bank Management (BIBM) at its Mirpur campus.

Key Remarks from Industry Leaders

Dr. Md. Kabir Ahmed, deputy governor of Bangladesh Bank, underscored the importance of developing robust Shariah-compliant liquidity management tools and enhancing institutional capacity to ensure the continued resilience and expansion of the country's Islamic banking sector. The workshop was chaired by Dr. Md. Ezazul Islam, director general of BIBM, while Dr. Mohammad Tazul Islam delivered the welcome address.

Panel Discussion and Research Presentation

The workshop featured comments from a panel of experts, including Istequemal Hussain, Mosleh Uddin Ahmed, Dr. Md. Shahidul Islam Zahid, and Md. Fariduddin Ahmed. A research paper presented at the workshop examined existing liquidity management practices in Islamic banks, identified major challenges facing the industry, and offered policy recommendations to strengthen liquidity risk management. The paper was prepared and presented by a research team comprising Dr. Md. Mahabbat Hossain, Md. Abdul Karim, Md. Farid Uddin, Md. Emon Arefin, Dr. Md. Omor Faruq, and A.K.M. Mizanur Rahman.

Interactive Discussion and Concluding Remarks

An interactive discussion followed the presentation, allowing representatives from banks, regulatory bodies, and academic institutions to exchange views and experiences on liquidity management challenges in Islamic banking. In his concluding remarks, Ezazul Islam emphasized the importance of evidence-based research and policy dialogue in addressing emerging challenges in the banking sector. He reiterated BIBM's commitment to supporting the development of a sound and sustainable Islamic banking industry through research, training, and knowledge-sharing initiatives.

Source: BSS

FAQ

What was the main focus of the workshop?
The workshop focused on the liquidity management of Islamic banks in the Bangladesh context.
What were the main recommendations from the research paper presented?
The research paper identified major challenges in liquidity management and offered policy recommendations to strengthen liquidity risk management in Islamic banks.

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